India's Tata Motors plans to unveil its ultracheap $2,500 car at an auto show here next month, the company said Wednesday.

Analysts believe the car may force other manufacturers to lower their own pricing.

While the price has created a buzz, critics say the vehicle will lead to millions more cars hitting choked Indian roads, adding to mounting air and noise pollution problems. Others have said Tata will have to sacrifice quality and safety standards to meet the price tag.

The four-door car, which will have a rear engine, is expected to go on sale in the later part of 2008, the company said in a statement.

Company chairman Ratan Tata has said the car will be the least polluting vehicle on the Indian roads and meet necessary safety standards.

Initially, the company plans to make between 250,000 to 500,000 of the cars each year, Tata told The Associated Press in a recent interview. While the base model will cost 100,000 rupees, the company will offer two variants with added features, he said.

German auto consulting firm CSM Worldwide has said the new car could help Tata Motors emerge as the country's largest manufacturer of cars and light commercial vehicles by 2013.

Currently, Tata Motors has a 17 per cent share of India's market.

Besides the ultracheap car, Tata Motors will also display several new cars that it plans to bring to the Indian market in collaboration with Italian auto maker Fiat Spa. The auto show in New Delhi opens Jan. 9.