Ratan Tata's dream to live on; Tata Nano may get a new lease of life as EV under TAMO brand

The future of Tata Nano has been murky for some time. Ratan Tata's dream project, an affordable family car, was launched in 2009 at Rs 1 lakh. However, the 'cheapest' tag didn't augur well for the company and sales were nowhere near envisioned.

Also read: Is there hope for Nano as Tata Motors prepares to be future ready?

Later, Nano proved to be the bone of contention between Ratan Tata and ousted chairman Cyrus Mistry. The latter had alleged that Tata Motors is unable to shut down the loss-making small car owing to "emotional reasons." The developments had put Nano's future hanging.

Emerging reports indicate that the Nano nameplate is here to stay, thanks to the formation of the TAMO sub-brand. Tata Motors has already made it clear that TAMO will act as an incubating centre of innovation towards new technologies, business models and partnerships in order to define future mobility solutions. The first model from TAMO, RaceMo, was unveiled at the 87th Geneva International Motor Show in March. The second model in pipeline is a hatchback and it will most likely get the name Nano, reports Autocar.

A compact hatchback ideal for city dwellers has been teased in a promo video of TAMO brand and it has been labelled 'Move'.

Move is expected to be the new Nano in the production avatar. Except the name, nothing from the current Nano will be carried over in the new model. The new hatchback will be based on the automaker's new Moflex modular platform.

Reports say the new hatchback is expected to be offered in an all-electric powertrain only. Tata Motors is already testing electric powertrains in its European Technical Centre.

The new Nano under TAMO brand is not expected to be a mass market model. It will be limited run model and will not be a 'cheap car' at all.