Tata first major carmaker to enter Automotive X Prize, announces two new hybrids

Indian automotive giant Tata Motors, the company behind the world’s cheapest car, the diminutive Nano, has announced plans to enter the $10 million Automotive X Prize competition with a new 100mpg car. Tata is first major carmaker to enter the challenge and it could be one of the few as most established labels are keeping their distance from the competitive event.

Tata plans on using an electric-hybrid driven car in the prize's 'mainstream' category, in which vehicles will be required to carry four or more passengers, have four or more wheels, and allow for a 200-mile range. Tata will also enter a micro-car in the 'alternative' class category, in which vehicles will be required to carry two or more passengers and allow for a 100-mile range, reports AutoWeek.

While the prize purse consist of $10 million in total, the funds will be split amongst the winning teams that finish with the fastest times in various stages in a cross-country relay race across the U.S. starting next year. Challengers also have to successfully build and market their 100mpg vehicles.

Tata's attempt to win the Automotive X Prize will be in fierce competition against 70 other teams, including Tesla and its electric car plus a number of much smaller teams such as Motive Industries and its practical 100mpg hatch as well as Aptera’s futuristic Typ-1 300mpg plug-in hybrid.