Caparo, the maker of the successful £200,000 T1 track car has announced it will develop two new and very different vehicles. The company sold 20 units of its T1, and this gave confidence to start work on a pair of concepts. One is a high-performance car evolved from the T1 that will be usable on the road. The other is the complete opposite: a small, ultra-light town car. Caparo will carry on building full-spec T1s, but it will make the car a limited edition.

For the small car Caparo will be building on the skills it is learning as a supplier of body parts for the £1500 Nano. "Because we handle body structures here and in India, made from steel and aluminium, we understand the dynamics and will be able to apply composites knowledge," said Caparo chief executive Angad Paul.

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