Launched at the Delhi Auto Show in India today, the ‘people's car' will retail with a starting price of 100,000 Rupees (£1,250).

The company will also offer more expensive versions with features such as air conditioning and will start sales later this year.

The Nano is 10 feet long, has four doors, can accommodate four people and can reach speeds of 65 mph.

Ratan Tata, chairman of India's largest carmaker, first promised to launch a cheap model around four years ago.

The company expects annual demand to reach 1 million units but initial production will start at 250,000 models.