Tata Motors Passenger Vehicles Ltd.

The small wonder is going to get bigger engines. Tata Nano, the world's cheapest car which comes with a 600-cc petrol engine, is set to roll out in a diesel avatar, apart from new petrol variants. The new engines will have capacities of 1,000 cc and above.

Tata Motors has started work on the two engine variants, though no time line or tentative prices have been drawn up so far, according to sources. It is part of Tata Motors' strategy to leverage the Nano brand across segments. The move ties in with the strategy to redefine its focus on the car segment. Tata Motors is developing a two-cylinder diesel engine for the Tata Nano. Buoyed by the success of the Nano, Tata Motors had, in June this year, overtaken Hyundai Motors to become the second-largest passenger carmaker in the country.