Two updates on the Tata Nano, aka the world's cheapest car.

First, the Indian minicar will have its body structure built by the Caparo Group at a plant in Singur that is next to the manufacturing plant that will build the Nano. Caparo will make 60 percent of the assemblies, and Tata will take care of the rest. The contract was finalized Friday and production will start in six months, an awfully quick turnaround.

Second, Reuters is reporting that the Nano will be coming to European market in four years. That model will be an updated version that "will meet the Euro 5 emission regulations and the crash standards in Europe," Girish Wagh, the head of Tata's compact car business to the German magazine Focus. One incredible upgrade: reducing gasoline usage from the current five liters per 100 km (47 mpg U.S.) to three (78 mpg).

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