Tata told The Maeil Business Newspaper of South Korea that he believes the "low-price revolution" will be the future of his company and the global automotive industry, and said that demand for low-end products in India would be well above that of more expensive high-end goods.
Tata would not speculate further over possible production or launch details of the hybrid Nano, with plans still believed to be in the early stages.
Delivery of the current Nano, known widely as the world’s cheapest car at 100,000 rupees (AUD$2350), began in July this year.
Weighing just 600kg, it is unlikely the hybrid Nano will get a full hybrid system with an electric motor and battery pack capable of powering the car for long distances.
Start/stop engine technology and braking regeneration are two possibilities to extend the car’s range, and may be combined with a diesel engine which is in a more advanced stage of planning.
Or perhaps Tata could take inspiration from fellow Indian manufacturer Tara International which sells an all-electric car for 99,000 rupees, 1000 less than the Nano.