The Tata Nano will be revised from next year.
Modifications to the 600cc two-cylinder engine will raise power by 3bhp to 38bhp, torque by 3lb ft to 38lb ft and make it more fuel efficient. It is officially rated at 72.13mpg on the combined cycle, with emissions of 92.7g/km of CO2.
The revised car will also get a new suspension set-up, featuring an anti-roll bar at the front. The steering mechanism has also been tweaked and the exhaust note has also been enhanced. Power assisted brakes will also be fitted as standard.
It will also be offered in a greater variety of exterior colours and interior materials will be improved, both to raise quality and dampen noise from the engine.
Tata has confirmed that the changes will not lead to an increased price. The Nano was launched in 2009 as the world’s cheapest car. Its asking price was 100,000 rupees (£1366).
Sales of the Nano have been disappointing so far, following initial problems locating the factory where it was to be built and then when some cars caught fire. However, with production and marketing on stream, and a safety upgrade, sales have recently climbed to 10,000 a month, from a low of 3000.
However, company boss Ratan Tata originally targeted 20,000 sales a month.