Updated on Thursday, February 26, 2009, 00:00 IST

New Delhi, Feb 26: Tata Motors on Thursday said it will launch 'Nano', touted as the world's cheapest family car, on March 23 in Mumbai and bookings will start from April this year.

The State Bank of India has been made as the booking agent for the much-awaited Nano car. Speculation is rife that at least first one lakh cars will be sold for Rs one lakh.

Sources state that due to the shifting of the production unit of the car from West Bengal to Gujarat, it entailed a cost for the company. Due to this reason, there are questions being raised about the price of the car.

The car was unveiled at the Auto Expo in Delhi in January 2008 and a function on March 23 would mark the car's commercial launch.

"The cars will be on display at Tata Motors dealerships from the first week of April 2009. Bookings will commence from the second week of April 2009," the company said in a statement.

The company said that the booking process and other details of the Rs one lakh car would be announced on the day of launch.

"Tata Motors is making arrangements for the widest possible network to book the car, so that prospective customers can conveniently avail of booking facilities at their locations, across the length and breadth of India," the statement said.

The company had also displayed the Nano at the Geneva Motor Show last year and had triggered competition, including Nissan-Renault, to announce plans for building low-cost family cars. The economic crisis has, however, forced them to put the plans on hold.

Bureau Report