Tata to study Indian market for electric Indica vehicle

Tata Motors said that it will start a feasibility research to introduce an electric version of its Indica car model in the local market. In partnership with a Norway-based company, Tata is presently building up the electric Indica prototype which is planned to be sold by 2011 in the European market, particularly in Denmark, Norway and the UK.

Prakash Telang, Managing Director of Tata, said that the company will first evaluate the country’s market demand before introducing the electric Indica vehicle. He informed that the feasibility research will be conducted next year once the product is ready.

Telang further stated that the electric car’s introduction in India would likely depend on the cost factor, as the electric Indica model will be an expensive automobile and the local market is too price-sensitive.

The high cost attached to electric cars is mainly because of the expensive batteries used in such kind of automobiles. Telang said that electric Indica cars will be 70 to 150 per cent more costly compared to ordinary vehicles because lithium-ion batteries are pricier than lead acid ones.

Earlier in 2008, the electric Indica model was showcased at the annual convention of the Society of Indian Automobile Manufacturers. The vehicle was also displayed at the Geneva Motor Show this year.

When asked about Tata Nano’s Sanand plant, Telang informed that it is producing around 3,000 to 4,000 car units per month at the Pantnagar facility. He claimed that Sanand plant’s annual capacity will soon be increased to 350 thousand units.