Tata Motors has long been working on an all electric vehicle (EV) that will be launched in the country. Latest media reports form ET Auto suggests that Tata Motors will launch its first ever electric car in India in September 2017. The all-new electric vehicle is said to be based on the Tata Tiago hatchback. If launched, the Tata Tiago EV will compete against the Mahindra e2O Plus in the niche entry-level electric car segment. Also Read: Upcoming Tata Motors cars launching in India in 2017-18; Nexon, Q501, TaMo RaceMo Tigor AMT & Tiago Sport

The Government of India, under the new GST tax rates, is encouraging the manufacturing and sale of electric vehicles in India, as the segment attracts the lowest tax of 12.5 percent. Tata Motors has been developing an all-electric concept that is based on the Tata Bolt. This electric vehicle project is under development at the Tata Motors European Technical Centre (TMETC). Reports suggest that the popularity of Tiago has made Tata Motors to introduce the all-new electric power-train, developed for the Bolt EV, in the Tiago EV. Read More: Tata Nexon Top 5 Features: Multi Drive Modes, Apple CarPlay, Android Auto & Touch-Screen Display

Furthermore, media reports also reveal that Tata Motors will make use of low-cost platform of Tiago, which will help the company to keep costs low. Apart from the power-train & battery, the Tiago EV will largely be similar to the regular hatchback, helping the company to keep costs low. This will also help in competitive pricing as compared to the Mahindra e2o Plus. Apart from the Tiago EV, Tata Motors is also said to be working on an electric Nano.

Source: ET Auto