we only have budget of ?200
Well, unless one of you own a breaker yard full of parts then you'd best forget this idea. Just because you are into electronics and your friend is in engineering doesn't mean you two have the first clue how to construct a car. It's an extremely difficult project and no amount of electronic or engineering know-how will prepare you for the mountain of problems you will have to overcome. Save some more money and buy a well used buggy that you two can overhaul. You will save thousands of dollars and will actually have a realistic shot at driving it before you turn 80.
That won't even buy you a set of paddle tires. Or a chassis, or an engine, a decent racing seat, transmission, set of wheels, most of your body panels, safety system, or suspension system. In fact you're screwed