Munich: Indian carmaker Tata Motors plans to launch a second, thriftier version of its low-cost car Nano in the next four years in Europe, the project chief has told the German magazine Focus.

"We will develop a follow-on model in four years that will fulfil the Euro 5 emissions standard and pass European crash tests," head of the Tata Nano project Girish Wagh said.

Focus released a German version of his remarks in Munich Sunday, a day before the magazine goes on sale.

Wagh said the principal objective was to reduce the Nano's fuel consumption.

The first generation of the car, set to sell for about $2,500, will be relatively thirsty, using five litres of petrol to go 100 km.

"We are not satisfied with that," Wagh said. Tata had set its engineers a target fuel consumption of three litres for the distance. Focus said Tata Motors was ultimately planning to make 1 million Nano cars per year.