Hamburg, 21 August 2008: According to a German press report, Tata Motors, which is planning to launch the world's cheapest car - Nano - also has plans to produce an electric-drive version of the car.

According to the Hamburg-based newspaper, Auto Bild, the E-Nano would be built in cooperation with the Norwegian electric car specialist, Miljoebil Grenland.

The Tata Nano is aimed at the mass Indian market comprising of middle-class, and is set to go on sale during October, this year.

However, industry analysts have expressed doubt whether Tata would be able to maintain the Rs.1 Lakh price tag, mainly due to the rising raw material prices.

The Nano is a no-frills basic car with a 33 hp 623 cc engine. It has no air-conditioning, electric windows or power steering that are standard in modern new cars.