No it's not the Smart Fortwo that is the cheapest car, but one of the smallest.
Tata Motors of India has released the world’s smallest car, the Nano. The Nano retails for a 100,000 rupees or 2,000 US dollars. The car is only 10 feet long and has a top speed of 65 miles per hour. The Nano has a two-cylinder engine and four-speed manual transmission but no air conditioning, electric windows or power steering, although those options should be available in the deluxe trims.
You can read more from Yahoo!: http://news.yahoo.com/s/afp/20090323/ts_afp/indiacompanyautotata_20090323144905
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