NEW DELHI, Jan 10: India’s Tata Group unveiled on Thursday a $2,500 car billed as the world’s cheapest.

The launch of the Tata Nano was a landmark in the history of transportation, like the first powered flight by the Wright brothers or the first lunar landing, said 70-year-old tycoon Ratan Tata, head of the giant conglomerate.

He unveiled the Nano to loud applause at the annual Delhi car show. He dismissed fears the Nano – so-called to appear both high-tech and small – would herald more congestion and pollution.

He said he wanted to make “a safe, affordable and all-weather transport – a ‘people’s car’, designed to meet all safety standards and emissions laws and accessible to all.”

The Nano exceeds Indian regulatory requirements and can meet strict Euro IV emission standards.

The 3.1-metre-long, four-door, five-seater car is due to hit the roads later this year, costing just Rs100,000, excluding tax.

It has safety features such as crumple zones, intrusion-resistant doors, seat-belts, strong seats and anchorages, and the rear tailgate glass bonded to the body. Tyres are tubeless.

He said it was “a car that most people said cannot be manufactured at that price”.

The Nano has a small, rear-mounted 33-horsepower, 624cc engine that can power the car to top speeds of 105 km an hour with a fuel efficiency of 20 km per litre. Although the car’s basic model does not have air-conditioning, electric windows or power steering, two deluxe versions will be available. —Agencies