Tata to develop electric vehicle for Chrysler

Chrysler could be adding another foreign carmaker to its growing list of global partners if reports coming out of India prove to be true. The reports claim Indian carmaker Tata has signed a deal with Chrysler to develop an electric version of its current Ace, a mini truck sold exclusively in India.

The news comes from India’s Business Line, which is also reporting that the new model will be sold in the U.S. by the end of the year. "The battery-operated vehicle has passed required safety and reliability tests, and the prototype is ready for production," an unnamed source revealed.

A spokesman for Tata confirmed negotiations between the two carmakers were taking place and that the feasibility of a vehicle on the Ace platform with an electric engine was being investigated, Reuters reports. Other technologies reportedly being investigated include the use of biodiesel, hybrid engines and fuel-cells.

The next couple of years are shaping up to be crucial for Tata. Ford is expected to name the Indian giant as the new owner of Jaguar and Land Rover anytime now and Tata has just unveiled the world’s cheapest car in the form of the new Nano minicar (pictured). Now we can also add this deal with Chrysler to the list and we bet Tata has even more up its sleeves.