The world’s cheapest car, Nano, is set to hit the roads of India with the first customer receiving keys to the vehicle in the city of Mumbai.

Ratan Tata, the head of Tata Motors which manufactures the car, will personally deliver the first car to a customer at a showroom in the city.

Tata Motors says it has received over 200,000 orders for the car.

The basic Nano costs 1 lakh, or 100,000 rupees ($2,025; £1,340), and a 95,000 rupees deposit must be paid upfront.

Analysts say that if the car proves an immediate hit in its home market, Tata may struggle to meet demand.

This is because the main Nano factory in the western state of Gujarat, which will be able to build 250,000 cars a year, is not due to open until next year.

In the meantime, Tata will only be able to build about 50,000 Nanos at its existing plants.

‘Significant’

Delays arose when Tata had to abandon plans to build the Nano in a new plant in the state of West Bengal due because of a row over land with farmers.

Analysts say that the delivery of the first car to the customer was "very significant" considering the fact that the launch had been delayed.

"They (Tata Motors) have been talking about delivering this car since last year and subsequently due to the problems they have had with moving the factory they have had to delay it by at least one year," automobile magazine editor Darius Lam told the AFP news agency.

"It really shows that now they are getting their production in hand and are able to start delivering."

The four-door Nano has a 33bhp, 624cc engine at the rear.

The basic model has no airbags, air conditioning, radio, or power steering. However, more luxurious versions will be available.

Reports say some 100,000 people have been selected from a ballot to be the first recipients of the Nano.

Among them, the reports say, are a roadside cobbler from Mumbai, a 82-year-old former police officer, and India’s first female photo journalist, Homi Vyarawalla, who is in her 90s.

Half of the orders were for the most deluxe version of the car, which comes with air conditioning and electric windows, and the remaining 30% for a mid-range model.

Tata said only 20% of customers opted for the cheapest version of the car.

The booking fee, or deposit, required for the deluxe model is 140,000 rupees, which has a full price of 185,000 rupees.

Tata hopes the low cost of the car will encourage millions of Indians to trade up from their motorcycles.

Currently, there are about nine cars per 1,000 people in India.

Environmentalists are warning that the Nano will add further clog up India’s crowded roads, and pollution levels will soar. Tata says the Nano will be the least polluting car in India. </p

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