Tata Relaunches Nano as an EV

Tata Motors Ltd. will reintroduce its ultra-low-cost Nano hatchback by year-end as an all-electric car called Neo.

The Neo EV will be produced through JT Special Vehicles. Tata formed the 50:50 joint venture in March with Jayem Automotives Pvt Ltd., an Indian automotive design and technology company based in Coimbatore.

Tata will supply the new company with completed vehicle bodies but no powertrain. Jayem will fit the shells with a 23-hp electric motor and enough battery capacity to travel about 150 km (93 miles) per charge. The electric drive system will be supplied by Indian electric mobility firm Electra EV.

When Tata unveiled the $1,900 Nano (pictured) in 2008, the company predicted annual global demand would eventually reach 1 million units. The car was introduced to the Indian market in April 2009. But production snags, quality woes and a misguided marketing program that trumpeted the Nano as “the world’s cheapest car” sapped consumer interest.

Monthly sales that peaked at about 9,000 cars in 2010 continued to slide. Deliveries in 2015 totaled only 17,000 units. Demand over the past seven months shrank 70% to fewer than 1,500 cars.