Last year, Savvy Frugality mentioned that Tata Motors in India was developing a brand new car that would sell for $2,500. Unfortunately (or maybe fortunately, depending upon how you look at it) the ultra-cheap car is only available in ultra-crowded India...until now.

Tata says it is looking at introducing the $2,500 car in the U.S. by 2012. It won't be the same version as the one sold in India, where crash and emission standards aren't as...shall we say, they are in the U.S. Of course, that could drive up the price of the $2,500, which is really its main selling point.

The car is definitely not frills. It tops out at 75 miles per hour and has no radio or air bags. But's $2,500. GM is said to be working on smaller cars, now that is owned by the U.S. taxpayers and has filed for bankruptcy. It Tata enters the U.S. market, could this possibly spur a "micro car" battle amongst automakers?

I like the price...but I also like my radio and airbags.


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