Indian auto major, Tata Motors will launch an upgraded version of its small car, the new Tata Nano Plus, which is clamed to be the cheapest car in the world, in 2011.

The upgraded Nano Plus will have various improvements as the company has noticed that customers are ready to pay more for enhanced features. The Nano did not create a lot of margin for the company and Nano Plus is expected to fill that gap and create value in the market.

Nano was a big name in the automotive world during its launch but it lost its popularity due to unending delay in deliveries and firing incidents. Tata seems to have addressed the delivery schedule problem with the facility in Sanand plant.

The new Nano Plus will most likely feature 1000 cc as against the older 623 cc engine engine producing more power along with ABS, alloy wheels and an inbuilt music system. Tata Motors has begun spot bookings for Nano Plus is getting good response from the market.

The car will be in lines with Nano Europa and compete with the likes of Maruti Alto and Chevrolet Spark. The company has not yet officially announced details about the features of the new model.