Indian car maker Tata has developed the world's cheapest car. At $2,500--or the "equivalent of a DVD player in a Lexus--the 10-ft long prototype is known as "The People's Car."

The aluminium car contains a rear-loaded 33 horse-power two-cylinder petrol engine and weighs about half a tonne. It is 3.1m long, 1.5m wide and 1.6m high and has four wheels pushed out to the corners to improve its manoeuvring.

The standard version – which will cost 120,000 rupees on the road after tax and delivery – comes complete with most features in any ordinary car: four doors, a four-gear manual transmission, seatbelts, locking and a steering wheel. A small boot allows enough room for a duffle bag.

The deluxe version, costing slightly more, will have air conditioning and central locking, while features such as radios and sun visors can be added at extra cost.

I doubt we'll see any of these in the United States anytime soon, but it's good news for the developing world. The car will be sold first in India but is expected to be made available in other emerging markets in Latin America, south-east Asia ,and Africa within four years.