Tata Nano to get diesel, hybrid engines in addition to gasoline

The powerplant for what is expected to be the world's cheapest mass-produced new car, whether it costs $2,500 or slightly more, has recently been revealed. The little car will use a diesel engine developed by Germany's FEV.

The 623cc, two-cylinder engine will feature a Bosch fuel-injection system, but all other components will be developed by Tata and FEV, according to the The Economic Times. FEV is an independent engine and powertrain systems research, design and development company.

The Nanos showed to date had a gasoline-burning version of the 623cc engine with fuel injection, mated to a four-speed manual transmission. A hybrid version is also likely, although it is not yet known whether the electric motor will be paired with a gasoline or diesel version of the powerplant.

FEV is also working with India's Mahindra & Mahindra on developing an electric-diesel powertrain for the automaker's Scorpio hybrid vehicle.