Tata Nano

India's CNBC-TV18 is reporting that Tata Motors will make a micro-hybrid version of the world's cheapest car: the Tata Nano. The hybrid technology will disengage the motor when the vehicle is stopped resulting in a 5% increase in fuel economy. The so-called "stop-start" system will be supplied by Bosch, which currently makes the fuel and braking systems for the Nano.

A standard Nano will cost $2,500. The micro-hybrid version will likely be just under $2,700. Diesel and full electric versions of the Nano are expected as well, although Tata has not yet announced a production start date for the base Nano.

The micro-hybrid technology will debut in Tata's larger Indica model and Bosch is reportedly considering offering the system as an aftermarket addition to standard gas models. Imagine the widespread appeal if Bosch could offer cost effective micro-hybrid technology to standard gas powered cars as an add-on.

Sources: Hybrid Cars, CNBC-TV18  Image: Automotive Credits