CITIZEN POWER ALLIANCE

So it looks like the world's cheapest car (the Tata Nano) could soon be the world's cheapest electric car as well.

The price of the Nano is just above $2,500 and Tata's chairman Ratan Tata says he expects demand to exceed supply. Tata's plant in the city of Singur in the state of West Bengal will eventually have the capacity to make 350,000 Nanos a year.

Tata Motors plans to make a second generation of its four-passenger Nano with a diesel engine. But initially, it will have a gasoline engine capable of 50 miles to the gallon.

But the interesting news out of Mr. Tata's talk to shareholders at the annual general meeting last week was that the company is competing for an Eco car in Thailand and looking at other ways to make even more fuel-efficient versions of the Nano.

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