Labeled as the world's cheapest car, Tata Nano is all set to launch its diesel version by September this year. The Nano sales had been affected adversely recently due to reasons, like increase in price and safety concerns. The brand has also been hit as some of the cars caught fire.

However, the brand Nano has again managed to catch up a bit by providing extended warranty on the car. Tata Nano will now soon be rolling out the diesel version of the car, in August or September and will be in all probability a 600-700 cc engine. The new Nano will not only prove to be more economical on the running costs but will also be safer.

The expected price tag will be around Rs 1.8-2.2 lakh. Experts believe that the diesel Nano will be sporting the smallest and cheapest diesel engine in the market and with a sub-1000 cc capacity, the output and performance are though expected to be 20-30% better than it usually is for that engine size.