News of a diesel option isn't really that earth shattering, as Ratan Tata, the man himself, has been quoted saying, "By and large we've always been a diesel company, so we will have a diesel version that will follow." This new diesel variant would be the smallest and most fuel-efficient offering in the Indian marketplace. Not only that, but the 0.8-liter mill dwarfs the standard 623 cc gas engine, and would probably make the Nano D the standout performance leader in the range — though more than likely the priciest offering as well. Is there something wrong with us if we really, really want three Nanos with different powerplants so we can race down the main drag, Shriner-style? [Economic Time]

It's not only a problem for Tata; across the board, material prices are gutting once-profitable programs. Imagine drawing up designs three years ago and projecting material parts budgets (which can often be up to 70% of the part price), only to have the most expensive element of the part jump in price by 40%. That's the kind of thing which blows engineering budgets. Tata is working with its suppliers and partners to determine what the pricing adjustments will look like (when an automaker says that, they mean lower price for them to buy supplies from suppliers, which also means less profit for the supplier), but it's clear they are trying to remain as close as possible to that original $2,500 target.

Jalopnik Snap Judgement: We'll still take three, with the racing stripes, as long as matte-black paint and rear-window shotgun holders are available options. [Automotive News Submission Req.]