Report: Tata readying Nano hybrid

New advances in battery technology have helped to reduce the overall costs of hybrid vehicles, but the technology still remains quite pricey, leaving it out of reach for many new car buyers. However, Tata Motors is reportedly working on a hybrid vehicle for all purses.

Tata head Ratan Tata revealed to Kore's The Maeil Business Newspaper that the Indian automaker is working on a hybrid version of its Nano city car. The Nano is currently the world's cheapest car, carrying a price tag of about $2,000.

Tata didn't give any more information on the Nano hybrid project, but did indicate such a vehicle could be targeted at more established regions, such as Europe and North America. Tata plans to roll out a Euro-spec Nano sometime next decade, with a version for the U.S. market still in the works.

Although Tata owns both Jaguar and Land Rover, the Indian automaker sees a stronger push to the lower-priced segments in the coming years. Although it remains to be seen just how deep that trend will go, the Nano hybrid could be positioned as just the right car at that end of the spectrum.