World's new cheapest car unveiled - Bajaj RE 60 costs less than Tata Nano

(RE 60)

Bajaj Auto, India's second largest bike maker, finally unveiled its first four-wheeler, a low-emission car - RE 60 on the eve of the 2012 Auto Expo in New Delhi.

Bajaj claims that this vehicle has hit 40kmpl under test conditions and a realistic mileage in daily driving conditions should be above 35kmpl. The 200cc rear-mounted engine's emissions will be an incredible 60g of CO2 per km.

Slated to be launched this year, its engine is a new water-cooled DTSi 4 (Digital Twin Spark Ignition) and able to accelerate to a maximum speed of 70km per hour. The small car can accommodate four people.

Though Bajaj has not yet revealed the prices for the RE 60, it is believed to be a ultra-low cost car and will compete with the Tata Nano, currently the cheapest car in the world.

Bajaj has been working with Nissan Motor Co and Renault SA on a project to develop an ultra low-cost mini car. While Renault-Nissan wanted to price the car at around $2,500, Bajaj insisted on lowering the overall cost of ownership.