Buoyed by the response to the Tata Nano (i.e., the world's cheapest car), Tata Motors Limited is ready to make the move to green. The company announced today that it will compete in the Progressive Insurance Automotive X Prize by entering two vehicles in the race. Well, Tata has signed a letter of intent to compete, which is as far as any of the 70+ teams have gotten.

In a statement put out by the X Prize foundation (pasted after the jump), Tata says they intend "to enter a pure e-drive micro car into the Alternative Class and Dominant Electric Hybrid vehicle into the Mainstream Class." We'll have to wait for more information on these vehicles, as that is literally all we have right now. Whether Tata wins or not, if they even come close, whatever lessons they learn while designing and building the entrant vehicles should be applicable to later generations of the Nano and other Tata vehicles. Considering Tata's ambitious roll-out plans, this is excellent news.