Tata Motor’s Diesel Nano will be unveiled at the 2012 Delhi Motor Show in January.

The long awaited diesel variant is expected to boost Nano sales. The lack of a diesel engine has been cited by analysts as one reason behind slow Nano sales.

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The Tata Nano Diesel is expected to have an additional price hike approximately of INR80,000 (US$1,549) – INR100,000.

Tata has made changes to the engine, which earlier was a major concern, and now hopes that the new diesel engine will attract more customers.

The new diesel engine can produce 38 PS from 35 PS earlier. There is an improvement in torque which has increased from 48 Nm to 51 Nm.

The top speed of the diesel variant is increased from 100kmph to 105kmph. The car now offers a mileage of 25.4kmpl which was earlier 23.6kmpl.

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