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 |  Jan 04 2012, 5:15 PM

Watch out Tata Nano – there’s a new vehicle in town and its aiming to be the cheapest car on the road. The Bajaj RE60 in a new four wheeled vehicle that’s looking to replace the Nano as the most inexpensive car in India.

Tipping the scales at a mere 880 pounds, the Bajaj RE60 keeps its weight down by utilizing a monocoque metal-polymer hybrid structure that’s durable as well as light weight. It gets its juice from a water-cooled 200cc engine that pumps out 20 horsepower, and offers a top speed of 43 mph. Even though it’s a compact car, there’s room for cargo – about 14.1 cubic feet when you fold down the rear seats.

In an effort to keep it eco-friendly, the RE60 will be available in gasoline, liquid propane gas and compressed natural gas models, which will give this vehicle 60 gm/km range and mileage of 35 kmpl.

“At Bajaj Auto, we believe the people of this planet deserve much better, much faster,” said Rajiv Bajaj, MD of Bajaj Auto . “We therefore decided to focus our efforts on developing vehicles powered by engines using available natural resources and infrastructure. We are very excited with the outcome of our efforts and, in the RE60, we believe we have an excellent solution for the mobility challenges arising from the rapid urbanization of India.”

No word on price just yet, but in order to make a dent in India’s car market, Bajaj will have to keep the price on the RE60 below the Nano.