Tata Motors inks deal with Chrysler electric vehicle unit
The Hindu Business Line — January 23, 2008

To enter US market with electric Ace

Tata Motors has signed a development contract with Chrysler's electric vehicle unit Global Electric Motorcars (GEM) to develop and market an electric version of the Ace for sale in the US.

According to sources in the industry, the battery operated neighbourhood electric vehicle (NEV) that can ferry passengers and cargo has passed required safety and reliability tests, and the prototype is ready for production.

The vehicle, that will mark the auto major's entry into the US markets, will be exported as a completely built unit sans engine or gear box. The American counterpart, that already produces and sells a range of six NEVs, will fit it with the motor and controller, the sources said, adding that the branding details had not yet been worked out.

When contacted, the Tata Motors spokesperson said, "Tata Motors is indeed exploring the possibility of a vehicle on the Ace platform, with an electrical engine suitable for the US, in association with a US company. But it is premature at this stage to furnish any details."

For Tata Motors, the electric Ace that requires no homologation, and attracts fewer regulations as it does not operate on highways and main roads will be a launch pad of sorts in a market where it currently has a no presence.

Export of around 10,000 units is expected to begin by the year-end, and will be ramped up progressively to 50,000 units. The company that launched a passenger version of the Ace last year, manufactures it at both its plants in Pune and Pant Nagar. In addition to exports, the company is also examining the prospects of launching the electric Ace in the domestic market.

Established in 1998, the North Dakota-based GEM was purchased by DaimlerChrysler in 2000, and spun out along with Chrysler in 2007, when the two auto majors parted ways. The company currently manufactures NEVs that run on 72V electrolyte or gel batteries, have a top speed of 25 mph and a range of 30-40 miles on charge. Typically, they find utility in fleet services, hospitals, golf courses, parks, and residential complexes.