MUMBAI--The world's cheapest car went on sale on Thursday, with dealers and the company behind it confident of strong demand despite a slump in global car sales amid the world economic downturn.

Bookings opened for orders of Tata Motors' 100,000 rupee (2,000 dollars) Nano at dealerships around the country, with a spokesman describing sales as "encouraging".

A steady trickle of customers was seen at Concorde Motors in central Mumbai soon after opening, and by the end of the morning five people had booked a Nano and about a dozen had picked up application forms, which cost 300 rupees each.