WORLD> Asia-Pacific
India's Tata launches world's cheapest car
(Agencies)
Updated: 2009-03-24 10:22

Undated handout illustrations and the interiors of Tata Motors' Nano car (top) are pictured in this combo illustration made available to Reuters March 23, 2009. [Agencies]

Earlier this month, the firm unveiled a European Nano sporting airbags and leather trim that will hit the market by 2011 but be costlier than in India due to the extra features.

A US version is also on the drawing board but requires redesigning to meet American safety standards.

Environmentalists, however, fear the Nano will accelerate congestion on India's already crowded, pot-holed roads and add to choking pollution.

"Every car that goes on the road is going to use road space. We're only adding to congestion," said Rajendra Pachauri, head of the UN's climate panel, which won the 2007 Nobel Prize.

Tata countered by saying that the Nano would be the least polluting car in India.