Check this out: Tata's one lakh ($2,500) car

Ratan Tata (Tata Group chairman) has done a fantastic job on his one-lakh car, christened the Tata Nano. He unveiled it today at the 9th Auto Expo in New Delhi (India).

It's smaller than a Maruti 800, but is 21% more spacious inside than the 800. The dealer price of the car will be 100,000 Indian rupees (Rs. 1 lakh) which is approximately $2,500, plus value-added tax (VAT) plus transport charges.

The car's dashboard has only a speedometer, fuel gauge, and oil light. It has very basic features, without reclining seats or a radio. The shock absorbers are basic.

The fuel tank is 30-litres. It has 4-speed manual gearshift. There will be three variants, one of which will come with air conditioning. It will have front disk and rear drum brakes. The company claims mileage of 23 km per litre.

The Nano has been designed with a family in mind, has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Four doors with high seating position make ingress and egress easy.