This news is a few weeks old, I think but I forgot to post on it. This year a $2500 car will be released in India.
Specs: 60 miles an hour, 54mpg, no A/C or radio, seats 4, cute as a button.

Apparently there was some controversy at the opening with 6 female protesters outside in opposition to the land aquired for the plant:

These were activists from a forum of left-leaning individuals and organizations that calls itself the Delhi Solidarity Group, holding a protest against the “forcible” land acquisition at Singur, West Bengal, for the Tata plant to produce the Rs 1 lakh car.