Tata Motors has been testing the Nano Diesel for quite some time. The car was earlier spotted last April undergoing tests on the expressway. We spotted the diesel Nano being driven on the outskirts of Pune on the old Mumbai-Pune highway. The car was being driven at 60kmph and was accompanied by a left hand drive Indica Vista and Aria. The Nano diesel is powered by a Bosch developed common rail motor. The 700cc single cylinder engine is expected to produce close to 35 bhp of power and 110Nm of torque. With a claimed mileage figure of 30kmpl from various sources, the Nano diesel will be the most frugal car in the world. The Nano diesel will be launched by the end of this year, with prices starting at Rs. 2 lakhs.