Indian motor giant Tata today unveiled the world's cheapest motor car, a three-metre long, four-seater which will sell for 100,000 rupees - around £1,200.

The Tata Nano, also known as the People's Car, will go on sale in India and nearby regions but will not be available in the West.

Tata, which is in line to buy the Jaguar and Land Rover marques from Ford in the next few weeks, said the Nano will bring the "comfort and safety" of a new car within the reach of thousands of families.

Speaking at the unveiling of the car at a motor show in Delhi, Tata chairman Ratan Tata said: "I observed families riding on two-wheelers - the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby.

"It led me to wonder whether one could conceive of a safe, affordable, all-weather form of transport for such a family.

"Tata Motors' engineers and designers gave their all for about four years to realise this goal. Today, we indeed have a People's Car, which is affordable and yet built to meet safety requirements and emission norms, to be fuel efficient and low on emissions.

"We are happy to present the People's Car to India and we hope it brings the joy, pride and utility of owning a car to many families who need personal mobility."