Autoblog

Tata Motors is expected become the winning bidder for Jaguar and Land Rover in the coming weeks. While the Indian automaker could soon be selling us expensive British luxury cars and SUVs, it's also hard at work developing the world's least expensive car. The cheap car under development is expected to sell for around 100,000 rupees or around $2,500 USD, and we've just learned it will be unveiled early next month at the Auto Expo in New Delhi.

Unfortunately, that's one auto show not on our itinerary to attend, so we'll have to report of its debut from afar. The car is expected have an engine in the rear powering the rear wheels, four doors and all the creature comforts of an outhouse, we'd presume. While it's likely the car will be exported to other markets outside of India when it goes on sale later in 2008, don't expect to see it in the U.S. as we expect it would fail both our emissions and safety standards with flying colors. (Tata Indica pictured for reference)

[Source: Automotive News, sub. req'd]

We told you last year about India's Tata Motors' plan to begin selling a four-door, rear-engined, VW Rabbit-sized vehicle for less than 100,000 Rupees, or about $2,400.

Right now, .8% of Indians can afford to own cars compared to 70% of Americans. Even so, India's urban roads are already over-crowded, and urban planners as well as environmentalists worry that even a small increase in car ownership could be disastrous for the country.

Or it could be just the thing needed to spur the country's economy. Optimists see the as-yet-unnamed super-cheap Tata spurring the construction of larger, more modern highways, as well as fueling stations, driving schools and car parts stores.

Either way, Tata will need to sell a whole helluva lot of 'em since they will carry less than a 3% profit margin.

(A Tata Indigo Marina is pictured)

[Source: Sunday Herald]