Tata Motors will launch a diesel version of the Nano small car in India in the first quarter of 2012.

The diesel will introduce range-wide upgrades such as improved seat cushioning, new upholstery colours, new paint colours, anti-roll bar, revised suspension settings and power steering.

The new line will be shown at the Delhi motor show in January 2012.

The diesel version is expected to boost Nano sales as petrol prices rise and demand for small diesel models increases.