Tata, Chrysler join hands to serve electric Ace in US

Cashing in on the success of its home-grown mintruck, Ace, Tata Motors is teaming up with US auto major Chrysler to market its electric version (EV) in the US market, early 2009.The truck? major entered into a development contract with the US carmaker?s Global Electric Motorcars (GEM) division early this year.

The two companies may even consider a JV depending on the performance of Ace globally, sources said ?Initially, we feel volumes will be low as the vehicle is being used for specialised purposes like delivery vans,? said a company source. Branding, volumes and pricing details of the EV are currently being worked out. But sources indicate that pricing would be upwards of $5,000.For the moment, the company will only market the Ace in US. ?We are yet to consider other products of the CV platform to be powered by an electrical engine for the US markets,? said the company source. It is also examining the prospects of launching the electric Ace in the domestic market.

Back home, the one-tonner Ace, which retails at around Rs 2.2 lakh, has a total capacity of 75,000 and is expected to go up to two lakh by the third quarter of 2008.The EV prototypes are ready and the products are currently undergoing testing . Tata Motors will export Ace as a completely built unit without the engine and gearbox.Chrysler will fit the battery motor and controller and retail it in the US market. Chrysler already has a range of EVs in its portfolio which it retails in the US and other markets.

Soaring fuel prices and stricter emission regulations in the global markets is forcing players like Tata Motors and Mahindra & Mahindra to develop hybrids and electric vehicles. M&M is also developing the Scorpio hybrid for the US market which it will start retailing in 2010.

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