Here's the $2,500 Tata Nano, the Indian peoples car
The Nano will be available in three trim levels with the base $2,500 getting no air conditioning. The two upper levels do get AC although it's not clear if that 33hp engine will be able to move the car and provide chilled air at the same time. The minimalist interior includes non-reclining seating for four, a four speed manual transmission, an a dashboard with speedometer, fuel gauge and oil light. Tata claims the Nano can achieve 54 mpg (U.S.) presumably without the A/C. It should be available in the second half of 2008 with a sales target of 500,000 units annually.
[Source: Rediff, thanks to Sayyad for the tip]
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