Five units of Tata Nano will hit the roads of Nepal for a test drive as part of Tata Motor’s plan to launch the ‘the world’s cheapest car’ in the Himalayan republic.

According to the head of Sipradi’s Passenger Car Business Unit division Pravin Khatiwada, the first five cars will be test-driven in different locations in Kathmandu, including hilly terrain and downhill, to gauge the Nano’s suitability for Nepal roads. He added that Tata has promised (that) the first Nanos for sale would arrive in the first quarter of 2011, soon after manufacturing begins in full swing at the new Tata plant in Gujarat’s Sanand.

Though the Indian car maker announced that the factory price for Tata Nano starts at Rs.100,000, due to Nepal’s customs and excise taxes, a whooping 205% from the original price will be added on its price tag in Nepal; public anticipation for the Nano could cost around Rs.500,000.

So far, Indian cars dominate Nepal’s car market with Hyundai, Maruti and Tata vehicles, which accounted for nearly 22 percent of the four-wheeler market in Nepal. 700 units of the car were sold in Nepal last year, according to Khatiwada .