Exclusive: Tata Nano diesel plan is not dead, spotted on test [PHOTOS]

News regarding Tata Nano with diesel engine was active right from the launch of the petrol variant in 2008. There were rumors on the possible launch at the 2014 Auto Expo. However, with the statement from the company in May 2015 declaring the project has been put on hold kept the entire Nano diesel news at bay.

The new spy pictures of Tata Nano by IBTimes India from Pune indicate the plan is not shelved yet. The Nano caught under heavy camouflage spotted with 'D' alphabet at the end of number plates which seems indicating diesel engine. The picture also shows the tailpipe going downwards like many diesel cars.

Tata Motors reportedly developed two and three cylinder engine for the Nano diesel which was in pipeline from 2010. The engines were reportedly derived from the company's small sized commercial vehicle, the Ace.

The big challenge for the Nano diesel was considered to achieve refinement without pushing the price too much. With the latest GenX Nano priced between Rs 2 lakh to Rs 3 lakh from the initial 1 lakh price tag, it seems Nano diesel can be positioned without higher price.

The suspected Nano diesel revival plan is also need to be seen in the light of new Maruti Suzuki Celerio diesel launch. The Celerio diesel is powered by a 793cc 2-cylinder diesel mill has the capacity to pump out 47bhp and 125Nm of peak torque. Maruti Suzuki managed to price the car at a highly competitive starting price of Rs 4.65 lakh. The industry rumors also indicate, Maruti Suzuki is planning launch the Alto diesel with the same engine with less output which is a rival of Tata Nano. This also might have prompted Tata to reconsider Nano diesel plan.