By Marcus Leach

The Tata Nano, the world's cheapest car, is preparing to face competition from Indian manufacturer Bajaj Auto's RE60.

The RE60 will be Bajaj Auto's first four wheel vehicle, having previously been best known for their three wheel auto rickshaws and scooters.

The new car was unveiled in Delhi and pitched as a solution to pollution and congestion, although a price for the vehicle has not yet been set.

However, in unveiling it the firm said the car had high fuel efficiency and low carbon dioxide emissions.

"At Bajaj Auto, we believe the people of this planet deserve much better, much faster," managing director Rajiv Bajaj said.

"In the RE60, we believe we have an excellent solution for the mobility challenges arising from the rapid urbanisation of India."

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