A diesel-powered Tata Nano will be reportedly unveiled in February at the 2014 Auto Expo in India, together with a new hatchback and sedan.
World's cheapest car is currently available with either a 624cc gasoline engine developing 38 HP (28 kW) or with a 624cc bi-fuel motor that can run on CNG and deliver a modest 33 HP (24 kW). Starting this year there will be a third engine offering in the form of a 2-cylinder, 800cc turbodiesel with up to 45 HP (33 kW) which will allow the diesel Nano to do 35-40 kmpl (82-94 mpg US / 98-112 mpg UK or 2.8-2.5 liters/100 km).
Aside from introducing a diesel Nano, Indian automaker Tata Motors also plans a compact hatchback and sedan part of the "Falcon" project. Both cars will ride on the existing X1 platform which has been used for the Vista and Manza. The hatchback has allegedly been styled in Tata's European design studio and is set to go on sale towards the end of the year with a 1.3-litre Fiat MultiJet diesel and a newly developed 1.2-liter turbocharged gasoline engine.
The sedan will be less than four meters long and will go on sale also sometime this year when it will replace the Manza. It will use the same engines as the hatchback but the gasoline motor will be upgraded to more than 100 HP (73 kW).