Tata is working on the diesel variant of its popular small car Tata Nano for quite sometime. Tata has been developing the Diesel engine for Tata Nano Diesel with Bosch which is a leading automobile component manufacturer. The Petrol version of Tata Nano, which runs on a MPFI engine which is BS4 compatible and delivers 20+ KMPL of mileage.
The upcoming diesel engine of Tata Nano will be even more fuel efficient with an estimated mileage of 40 Km per litre of diesel (official test data not available as yet) per litre of diesel. This will make Tata Nano the cheapest running cost diesel car in probably the whole world ! The running cost will be slightly above 1 rupee per kilometer which is far cheaper than the nearest competing car running on Diesel.