Tata Motors to unveil world's cheapest car in Jan

MUMBAI, Dec 19 (Reuters) - Tata Motors (TAMO.BO: Quote, Profile, Research, Stock Buzz) (TTM.N: Quote, Profile, Research, Stock Buzz), which is considered a front-runner to buy Ford Motor Co's (F.N: Quote, Profile, Research, Stock Buzz) luxury Jaguar and Land Rover brands, will unveil the world's cheapest car at an auto show in India next month.

Tata Motors, India's third-biggest auto marker will showcase its $2,500 car at the Auto Expo in New Delhi on Jan 10, with a commercial launch planned for later in 2008.

The company has promised to sell the car for 100,000 rupees ($2,500) although some analysts say high raw material costs may push the price of the "people's car" closer to $3,000.

India's Bajaj Auto (BJAT.BO: Quote, Profile, Research, Stock Buzz), Renault (RENA.PA: Quote, Profile, Research, Stock Buzz) and Nissan (7201.T: Quote, Profile, Research, Stock Buzz) are looking into the feasibility of making a $3,000 car.

Indian media reported on Wednesday that Tata Motors, valued at $6.8 billion, has offered $2.05 billion for Ford's brands. See [ID:nBOM202921]

Ford, which is spinning off the British luxury brands to focus on restructuring its loss-making North American operations, is expected to close the sale of Jaguar and Land Rover in the first quarter of 2008. (Reporting by Himangshu Watts; Editing by John Mair)