Geely plans to manufacture a car cheaper than Tata's Nano

Geely is planning to launch a city car which would be less expensive than the Tata Nano manufactured by Indian auto major Tata Motors.

Geely also plans to price the vehicle around $2,250 when it goes on sale in China in 2012. The basis of the new Chinese car is the showcar from Geely that was unveiled during the Beijing Auto Show. However, the production version will not feature the concept’s innovative, upwardly-hinged “gull-wing” doors.

The Chinese car maker recently came into the limelight when it bought the Swedish marque Volvo from Ford. Geely says that the sub compact will incorporate higher quality standards when compared to the Tata Nano.

The four seater mini car will likely be powered by a 1.0 litre petrol engine which can generate 70 BHP. The engine will be mated to five-speed manual gearbox.

Geely has sketched an electric version of the car, too, using a lithium-ion battery. But this is not likely to happen anytime before 2015.