Image: Tata Nano. Photograph: Kind Courtesy, Tata Motors

With deregulation in diesel prices, a Nano diesel does not make sense with the lesser difference in petrol and diesel fuel prices and it only made sense for Tata to stop the development on the lost cause.

The Nano diesel has been a long awaited offering from Tata Motors that will now not see the light of the day.

A recent report suggests that Tata has indefinitely halted the development of the Nano diesel as its Engineering Research Centre (ERC) at Pimpri, Pune in order to focus on other projects instead.

In addition to the Nano diesel, the company has also stopped the development of a quadricycle based on the Magic Iris platform at the ERC for unknown reasons.

Image: Tata Nano. Photograph: Kind Courtesy, Tata Motors

Starting with the Tata Nano Diesel, the model has been long in the news with the automaker developing the same since quite some time now.

However, the extensive development has taken a toll on Tata as diesel prices have now been deregulated with the difference between petrol and diesel coming down to a minimal.

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Tata Motors shelves Nano diesel project