It may have been pitched as the cheapest car on road, but Tata Motors is looking to launch a fully-loaded deluxe version of the Nano on Indian roads by 2012. The deluxe Nano would not only have a more powerful engine at its heart, but would also sport comfort and safety features like power steering, air bags and ABS.

The deluxe Nano comes as Tata Motors works on an advanced version of its budget car for the European markets, called 'Nano Europa' that was also displayed at the Geneva Motor Show in 2009. The company is looking at launching the same car in India when it gets ready for its debut in Europe. "Yes, there is a chance of Tata Motors launching the Nano Europa in the Indian market as well," Tata Motors' India operations MD PM Telang said.

The Europa is being developed keeping in mind the requirements of international markets and thus will be a step above the existing Nano retailed in India. Telang said the car will be advanced, and enhanced , to the existing model. "It will have several additional features like a more powerful engine, power steering, airbags, ABS as well as higher structural strengths," he said.

Tata Motors has said that the Europa will have a wheelbase longer than the existing Nano and will have redesigned interiors. Also, the car will be powered by a 3-cylinder all-aluminium MPFI engine with a 5-speed automatic transmission. The company has targeted that the petrol engine will be highly fuel efficient and will have low CO2 emission of less than 100 gm/km.