India's Tata Nano has been in the works for some time, but pre-orders are starting today with a MSRP of 100,000 rupees (under $3000)—officially making it the cheapest car in the world.
The price jumps up to around $3500 when you factor in the additional costs associated with excise fees, transportation, taxes, etc—but the allure of a car that ridiculously cheap is going to be powerful not only in India, but around the world. That's why the Tata group has plans for releasing a version for the European market in 2011 and North American market beyond that (although those versions will undoubtedly be more expensive).
Of course, you get what you pay for, and $3000 isn't going to buy you even basic luxuries like air-conditioning—but it will get you over 21km per litre. The question of reliability is also an issue, but it couldn't be worse than that gas guzzling beater you are driving around right now could it? [BBC via Jalopnik]