Underlining the switch towards smaller and more fuel-efficient vehicles in the US, both Ford and General Motors (GM) have announced new investment projects. Ford will convert a Michigan truck plant to produce small cars, while GM has secured incentives to set up an engine plant for its Chevrolet Volt electric car in Flint.

Domestic auto major Tata Motors (BSE:500570) on Thursday unveiled the electric versions of passenger car Indica' and commercial vehicle 'Ace'. The company has indicated that the electric Indica would be launched locally in about two years, without disclosing the price. The vehicle would be launched in Norway next year. Tata Motor's President Ravi Kant told reporters that Norway has the necessary infrastructure in place to run electric cars. The vehicles run on lithium batteries that were co developed by a Norwegian alternative fuel company and Tata Motor's research facility in the UK. (PTI)

As environmental awareness increases, so does the need for better fuel alternatives. One of those energy sources is getting a lot of buzz -- and moving from laboratory testing to the road.

Nissan Motor Co. (TSE:7201) said Tuesday that it is developing a plug-in hybrid vehicle that could hit the market after the debut of its electric cars in 2010. "Development is already underway and we are conducting performance tests," said Executive Vice President Mitsuhiko Yamashita. But he acknowledged that the timing of the commercialization and sales launch of the vehicles is still undecided. (Nikkei)

SACRAMENTO - These days, chances are better than even that California legislators will be seen driving a highly fuel-efficient car. The car of choice for their leased vehicles is now a gas-electric hybrid. To date, 47 of the 80 Assembly members and 16 of 40 senators have made the switch. Of the seven lawmakers who represent portions of Ventura County, two - Assemblywoman Julia Brownley, D-Santa Monica, and Assemblyman Cameron Smyth, R-Santa Clarita - drive hybrids. Sen. Sheila Kuehl, D-Santa Monica, has no state vehicle.

eCourier.co.uk is e-lectric! In 2006 they became London's first carbon neutral same day courier company, and now they're rolling out zero emission electric vans and scooters as part of their fleet.

Norwegians are becoming more environment-friendly as they started to patronize electric cars more than the conventional car, online news reported here during the weekend. Reports have it that sales of new cars in Oslo region have fallen by 5 percent last year while sales of environment-friendly cars, emitting a maximum 120 grams of carbon dioxide per kilometer, rose by 74 percent during the same period.

With its strict vehicle emission standards and government support for alternative-fuelled vehicles, it is little wonder that California is becoming a hotbed for electric cars. Germany's BMW is set to export electric versions of its Mini models to the state, according to sources quoted in Automotive News. The sources claim that 490 Minis will be built in Oxford, England, shipped to Germany to have electric powertrains fitted and then leased to customers in California. This falls under BMW's newly created Project i division, which is working on low-emission cars for the German manufacturer.

Mitsubishi Motors Corp. plans to produce 2,000 "i MiEV" electric vehicles in 2009, the year the model will be launched in Japan, President Osamu Masuko said Tuesday.

A car that gets 100 miles a gallon may sound far-fetched, but the biggest challenge in designing a high-mileage hybrid vehicle for the $10 million Progressive Automobile X Prize (AXP) competition in 2010 is not know-how, says Cornell's AXP team. The biggest challenges are space to work in, time and money.