Tata Motors has signed a development contract with with Chrysler’s Global Electric Motorcars (GEM) unit for a new neighbourhood electric vehicle (NEV), according to a local newspaper.


India’s Business Line paper, citing unnamed industry sources, said on Wednesday that the deal with GEM is for an electric version of Tata’s Ace mini truck for sale in the United States.


Business Line said North Dakota-based GEM was established in 1998 purchased by DaimlerChrysler in 2000, and sold along with Chrysler in 2007. The company currently manufactures NEVs that run on 72-volt electrolyte or gel batteries, have a top speed of 25 mph (40km/h) and a range of 30-40 (50-70km) on charge. They are typically used in fleet services, hospitals, golf courses, parks, and residential complexes.


“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 paper said.


It added that the vehicle, that would be Tata Motors’ entry into the US market, would be exported as a completely built unit minus engine or gear box.

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GEM, which already produces and sells a range of six NEVs, would fit it with the motor and controller, the Business Line sources said, adding that branding details had not yet been worked out.


The paper said exports of around 10,000 units are expected to begin by the year-end, and will be ramped up progressively to 50,000 units. Tata is also considering launching the electric Ace in India, Business Line added.


“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,” a Tata Motors spokesman told Business Line.


Last September, Chrysler announced a new organisation called ENVI, responsible for developing electric-drive vehicles and related advanced-propulsion technologies.


The unit is headed by Lou Rhodes reporting to Frank Klegon, Chryler’s product development chief.


Announcing ENVI, Chrysler chairman and CEO Robert Nardelli said: “[It] will develop electric-propulsion vehicles that will provide customers with more fuel-efficient vehicle options.”


ENVI is located within the Chrysler Technology Centre in Auburn Hills, and comprises a team of specialists in engineering, portfolio management, modular architecture, manufacturing, and procurement and supply.


Chrysler president Tom LaSorda said ENVI would operate as a ‘start-up’ “with an entrepreneurial environment”.


ENVI is displaying three Chrysler-branded concept cars at the Detroit motor show this month.


Chrysler hopes Detroit green concepts will cause ENVI