Tata's diminutive Nano will soon be hitting the market with a standard 30-horsepower, 624cc gas engine mated to a four-speed manual transmission. While that may seem a bit small and underpowered, those looking to spend just $2,500 on a brand new car aren't likely to complain. Plus, the combo is good for 54 US miles per gallon, quite the achievement, we'd say. When it was first introduced, Chairman Ratan Tata indicated that a diesel engine was likely soon after launch, and it seems he wasn't kidding around. Displacing 800 cubic centimeters and equipped with common-rail fuel injection along with a turbocharger, the planned twin cylinder diesel engine has been jointly developed by German powertrain specialists FEV, Bosch and Honeywell. So far, no pricing, horsepower or fuel mileage statistics have been released, but the oil-burner is sure to improve fuel mileage even further and will likely add a bit to the cost of the World's cheapest car
