Low-priced, tiny and reasonably reliable Nano cars made by Tata Motors are set to roam the streets of Bangladesh from early next year, the local distributor said on Monday.

"We plan to import up to 2,000 cars initially but the figure will be raised with increased demand in the country," said Abdul Matlub Ahmed, chairman of Nitol-Niloy Group.

The Nano, one of the smallest as well as the cheapest cars in the world, was likely to cost around 500,000 taka in Bangladesh, Ahmed told Reuters. But the price may vary depending on the government's decision on customs duty.

Used cars from Japan are most popular in Bangladesh for their high quality and reliability, but they are expensive.

Previously, Indian cars could not access the Bangladesh market, except for some "Ambassador" taxi cabs.

The Nano was scheduled to be launched in Bangladesh last October, but the pricing issue delayed it.

Ahmed said his group was eager to set up a Nano assembly unit in Bangladesh by the end of next year, if demand for the car soars.

Ahmed said he expected Nano sales in Bangladesh could reach 10,000 annually in the next couple of years.