The cheapest new car in the world hit the streets in Mumbai, India on Friday night.

Ashok Raghunath Vichare, 59, a Mumbai customs officer, took the keys of a silver Tata Nano, which is sold by India's Tata Motors for as little as $2,300. (Taxes and transport fees are extra.)

Pedestrians in Mumbai watch the first Tata Nano roll down a street on Friday. (Rajanish Kakade/The Associated Press)"I am very happy, I can't say how happy I am," said Vichare's wife, Shaila.

It's the family's first car, and they got it by chance: Tata ran a lottery to determine which of the potential buyers would get to take delivery of the first Nanos.

Tata Motors, with revenue of more than $15 billion a year, has already sold more than four million vehicles in India. The Nano, a small four-seater that comes in three versions, is aimed at first-time buyers and city drivers.

The cheapest version does not have heating or air conditioning, and comes in three colours; the top version does have heating and air conditioning, along with upgrades including fabric seats, front power windows, fog lamps, a cup holder in the front console and a rear spoiler.

The company plans to deliver 100,000 Nanos by the end of 2010. A new plant, which Tata hopes to open in early 2010, will produce 250,000 Nanos a year. An existing plant can make 50,000 a year.

Tata includes Jaguar Land Rover, which it bought from Ford for $2.3 billion US in early 2008.