American drivers will soon have more choice of small cars in the form of the Indian automaker Tata’s Nano micro-car. What makes the Nano so noteworthy is its incredibly cheap price tag. The Nano currently retails at the equivalent of $3,000 in India.

Surprisingly, the low price which was originally $2,500, when it was first released in 2009, didn’t guarantee its success in the Indian auto market. In fact, early issues like the Nano that exploded into flames in Mumbai in 2010, were understandably off-putting. This no frills micro-car’s lack of fittings and furnishings didn’t exactly drive up its popularity either. It would seem that the average Indian motorist wasn’t too impressed by a car that lacked so much as a simple cup holder.

The Tata group is not about to let this rain on its parade. On the contrary, having learned some valuable lessons from India, Tata now has its sights set on releasing the Nano for the US and European markets within the next three years.

It’s worth mentioning at this point, that the US price tag for the Nano will be significantly more than $3,000! Quite a few changes will need to be made before it can go on sale in America.

Right now, the Nano comes with a 37 hp two-cylinder engine and is distinctly lacking in safety features. Airbags, traction control and power steering will need to be added, as well as a more environmentally friendly engine. All of this is likely to triple the price, but Tata is adamant that the Nano has what it takes to compete against the Fiat 500 and the Smart, and take its place in the small car market. The company is optimistic that the competitive price will act as a lure to the US motorist. Even with a final estimated price tag of $10,000, it would still beat the Hyundai Accent ($13,205) and Nissan Versa ($11,750).