Indian auto major, Bajaj is planning to position its newly launched RE60 ultra affordable car as an alternative to auto rickshaws in the country and will not promote it to the average consumers.

It was believed that the company’s offering will be a competitor to the Tata Nano, which is claimed to be the world’s cheapest car. The RE60 offers features such as seat belts, doors and a hard top, which are not available on current rickshaw models.

Bajaj has not announced the pricing details of the new ar but it is expected to cost around $2,750, which is about 25 per cent higher than the price for auto rickshaws in India.

Experts say that the new model will not be a threat to Nana, which is priced at about $2,600. The Nano itself has not been able to live up to its description go a people’s car and has sold fewer models than expected due to production delays and safety concerns.

The company said that the new car is powered by one-cylinder, 200 cc engine and will run for 35 kilometers per liter. The vehicle will have a top speed of 70 kilometers per hour.

"At Bajaj Auto, we believe the people of this planet deserve much better, much faster," Rajiv Bajaj, the managing director of the company said in a statement. We, therefore, decided to focus our efforts on developing vehicles powered by engines using available natural resources and infrastructure."