Bajaj Auto, which is India's second largest two-wheeler manufacturer, has unveiled its low-cost car - named RE60 - at the 2012 New Delhi Auto Expo.

The RE60 is the result of several years of Research & Development (R&D) by Bajaj, which initially conceived of the idea in association with the Renault and Nissan Motor Co. However, due to various reasons, Bajaj went on the development path all by itself

The Bajaj-made car is expected to rival the Tata Nano, which often costs less than $3,000 in India.

The RE60 is fitted with a one-cylinder, 200cc engine and promises a fuel consumption rate of 35 kilometers per liter and a top speed of 70km per hour. Interestingly, Bajaj does not call its newest product a car but prefers to use the generic term - four-wheeler.

This is a four-wheeler designed and developed with the skills we have as a two/three wheeler company, Rajiv Bajaj, the Managing Director of Bajaj Auto, said.

The company has yet to reveal the market price of the RE60 but is expected to make it available for purchase sometime this year. In any case, it is expected to be the cheapest car in the world.

At Bajaj Auto, we believe the people of this planet deserve much better, much faster, Rajiv Bajaj said. We, therefore, decided to focus our efforts on developing vehicles powered by engines using available natural resources and infrastructure, he added.