Tata Nano

Confirming our report from several months back, Tata will begin offering a diesel-powered Nano in the not-so-distant future, with one report even claiming it'd debut as early as February, at the 2014 Indian Auto Expo.

The new engine will be a twin-cylinder, 800-cc turbodiesel, according to CarDekho, that could very well be make the Nano the most fuel efficient vehicle on sale in the country's rapidly developing auto industry. Estimates from World Car Fans claim the Nano diesel will return 82 to 94 miles per gallon on the US cycle. The Nano is currently available in both gas and CNG-powered forms, although with a projected 45 horsepower, the diesel should outgun both the 38-hp gas engine and the 33-hp CNG mill.

Joining the new powerplant will be a pair of new body styles. First, a new hatchback, complete with styling from Tata's European studio will be offered. Unlike the current car, which has a hatchback's shape without, you know, an actual rear hatch, this new model should offer access to the back from outside the car. A four-door sedan will also be available.

Reports claim that both the hatch and the sedan will come with considerably larger, more powerful engines. The sedan should churn out over 100 horsepower while the hatch will offer either a 1.3-liter Fiat diesel or a 1.2-liter turbo.