Tata Motors which only showed the petrol version of the Nano upon its debut has made plans with German powertrain maker FEV to offer a diesel edition as well. Unlike other nations where diesel is more expensive as compared to petrol, India which highly subsidises the cost of fuel for its citizens has diesel selling at a discount to petrol. While this is done so as to keep down inflation (as trucks use diesel) ; Indians have been quick to catch on to the latest diesel cars which offer higher mileage at a lower cost.

Tata had earlier announced that they are working on a diesel and hybrid edition for the Nano but had provided no further details. The petrol version of the Nano has an engine of 600 cc but the diesel edition will enjoy a 800 cc engine. It will be a two cylinder CRDi engine .

The car will sport the world’s first 800 cc, turbo charged, CRDi diesel engine.

The diesel engined Nano shall debut in 2009 , while the petrol one is on its way to launch in the last quarter of this year. Rumours are also abound that in order to cut costs (inflation in India hit double digits recently) , Tata Motors would be spending a negligible amount on publicity for the Nano. They will prefer to rely on word of mouth publicity to give the small car a sales boost.

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