Think of India's cheap vehicle segment and the Tata Nano is the first, and perhaps only, car that will pop into most car-focused minds. However, a new player is set to take the country by storm, as India's largest three-wheel manufacturer Bajaj Auto introduces a new four-wheeled vehicle. Developed in house, the Bajaj RE60 features a 200cc water-cooled DTSi 4-valve engine producing around 20hp and managing a top speed of 43mph.

Although not exactly quick, there's space for four people and with 82mpg it's an ideal cheap city car. MD Rajiv Bajaj says: "We are presenting an optimized solution for intra-city passenger transport. This vehicle has been designed for intra-city use keeping in mind the intra-city duty cycles and safety requirements." While Mr. R. C. Maheshwari, President, Commercial Vehicles, Bajaj Auto Ltd. said "The vehicle presents a small, simple solution to combat pollution and inflation. It does not need investments in infrastructure, does not need subsidies and does not need time.

"It retains a small footprint - nearly the same as our Autorickshaw, is highly maneuverable and can keep pace with the moving traffic. At the same its limited top speed makes it intrinsically safer for pedestrians, cyclists and two wheeler riders." Weighing in at a mere 399kg, the Bajaj will be offered in several fuel variants: gas, liquid propane gas, and compressed natural gas, but there'll be no diesel engine. There's no word on price but it's going to have to undercut the Tata to stand a chance at challenging it.