Tata will launch a city car in Europe within the next five years.
The car will be inspired by the Tata Pixel concept, a four-seater that is 3.05m long and 1.63m wide, which was launched at the Geneva motor show.
Although the concept has scissor doors and a large glass roof, neither of these items are expected to make production.
However, Tata insists some of the other styling flourishes will remain, including a system that moves the wheels in sharp turning, giving the car a turning circle of a tiny 2.6 metres. The car is also fitted with 'My Tata Connect', an infotainment system that integrates the driver's smartphone or iPad into the car controls.
As a result, Tata is reluctant to label the car a European Nano as it doesn't want it to be perceived as a 'back to basics' means of transport. Testing of the car is already underway, according to a company insider.
'It will definitely be priced below its rivals, but it will be about value for money, not creating a revolutionary product that broke price records, as with the Nano,' said a spokesman.
Although the Pixel concept is powered by a 1.2-litre, three-cylinder turbodiesel engine, a company insider told What Car? that 1.0-litre petrol and electric powered versions of the car are under development, and that all three powertrains could be sold.
The Pixel's turbodiesel manages 83mpg and emits 89g/km, figures boosted by low-resistance tyres, stop-start technology and energy recovery systems.
Tata EV driven
We've driven a Tata electric vehicle at the Geneva motor show, check out the video below.