Tata Motors which is considered a front-runner to buy Ford Motor Co's luxury Jaguar and Land Rover brands, will unveil the world's cheapest car at the Auto Expo in India next month.

Tata Motors, India's third-biggest auto marker will showcase its $2,500 (Rs 1 lakh) car on Jan 10, with a commercial launch planned for later in 2008.

The company has promised to sell the car for 100,000 rupees ($2,500) although some analysts say high raw material costs may push the price of the "people's car" closer to $3,000