Thousands apply for cheapest car

Car dealerships in India selling the world's cheapest car have already sold 51,000 application forms since its launch on April 1.

Tata Motor dealerships have sold thousands of the £4 application forms to people hoping to get their hands on one of the £1,300 Nanos. The State Bank of India and its subsidiaries, and some high street stores, have also been selling applications.

Customers who have bought the application forms will have to wait for their car as the company will only produce 50,000 cars in the first year, due to problems with its manufacturing plant prior to the launch.

A Tata spokesman said: "The response has been very encouraging. We will release the final numbers after the bookings close on April 25. The allotment of cars is through a random computerised process.

"If the number of bookings is in excess of 100,000, we will have a computerised allotment process."

The lucky buyers will have to make a down payment of 70-80% depending on the model they choose, but financial help will be available for buyers who want to make an initial payment of just £40.

The Nano is available in three models - standard, deluxe and luxury - and the first deliveries will be made in July.

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