(MARCH 13, 2011) Tata Motors of India, maker of the muh-publized Nano, has launched the most fuel-efficient car in India. The diesel-powered Indica eV2 is rated at the equivalent of 62 miles per gallon.

Tata claims the new diesel version of its tiny Indica hatch, called the Indica eV2, is the most fuel efficient car running in India, returning a figure of 25kpl (62 mpg), a 46 percent improvement over its predecessor.

Powering the hatch is a new 1405 cc CR4 Common Rail diesel, developing 69 horsepower and 103 pound-feet of torque. This gives the new Indica eV2 a power boost of 32 percent and also a 65 percent increase in torque as compared to the older V2.

The Indica eV2 gets improved gear ratios and starter motor protection. The car is now lighter benefitting performance. It sports bigger 14-inch wheels among other added features.

The new Tata Indica eV2 offers Auto-Drive Assist that works similar to hill assist, and a Clutch-To-Start feature, which ensures that the engine cannot be cranked unless the clutch is fully engaged.

The new model gets numerous other features such as power windows, keyless entry, Bluetooth enabled music system and USB port, four-spoke collapsible steering wheel, 60-40 rear seating, and front and rear fog lamps.

The Tata Indica eV2 CR4 diesel is priced at Rs 3.95lakh (about $8,800) for the base model, going up to Rs 4.77lakh (about $10,600) for the top-end version.