"These will use lithium ion batteries for high energy and power density," a source said.
It is understood that the electric car, which Tata Motors Chairman Ratan Tata said would be delivered by end of this financial year, would have an approximate range of 200 kilometers.
Aimed mainly at city driving, Tata Motors' electric car is a part of its larger project on developing eco-friendly vehicles.
Ratan Tata had said that the electric car has been developed for Norway and "hope to deliver it by end of this financial year and then it will be available to employ in other markets".
Besides the electric car, the company is also developing an electric version of its mini truck Ace, primarily for exporting to the US and European markets.
The sources said the electric vehicle on the Ace platform is in advanced stage of development.
"The prototype for the vehicle is in production ready stage," a source added.