Following in the footsteps of many leading car manufacturers who are developing eco-friendly cars, Tata Motors on Tuesday announced that it is planning to launch an electric version of its popular model Indica by early 2011.

The car will be developed in association with the company's Norway based Miljøbil Grenland/Innovasjon, in which Tata owns a 50.3% stake, and feasibility study for the small electronic car will commence next year. The vehicle will be launched in India and Europe simultaneously.

"It will be available for India at around the same time as the global launch. It will be launched in Norway, Denmark and the UK in 12-14 months. We’re evaluating the option of an Indian launch, but are still not sure if the electric vehicles (EVs) are the best option for the country”, said Mr Prakash M Telang, Managing Director, India Operations, and Tata Motors.

The company, while asserting the need for environment friendly automobiles, shared concerns about the cost of these vehicles, which are 70-150% more expensive than their petrol or diesel based counterparts, and said that before a domestic launch happens, this will need looking into.

Tata Motors had unveiled its electric car at the Auto Expo last year, but not many details were shared then.