Application forms for the 100,000 rupee (A$2823.00) car will available in 1000 cities in India starting on April 9. A computerised random selection procedure will decide the owners of the first 100,000 cars.
The lottery system was decided upon because of the massive interest in the car, and production delays, causing an unprecedented demand.
Since the Nano was unveiled on January 10, 2008, Tata's website for the Nano has received 30 million hits.
At the Nano's commercial launch in Mumbai, India, today, Tata Chairman Ratan Tata said the Nano will provide safe, affordable, four-wheel transportation to families who currently cannot afford to own a car.
Nano deliveries will start in July with the four-door, five-seat Nano to be sold in India in three trim levels, standard, CX and LX (as pictured).
The top-of-the-range LX will have fabric seats, central door locking, front power windows, a cell phone charger point and a rear spoiler.
The Nano is powered by a 26kW, 624cc two-cylinder rear-mounted engine with a top speed of 105km/h.