Tata, Mahindra and Maruti work together to develop hybrid technology

Why do that? Just purchase the technology from Toyota. There is no better Hybrid system in the world. Spending money on development is futile.
These cars will make a large "splash" in the US and Canadian markets. Look out!

Toyota Hybrid is clearly marketed for the Western consumer and thus comes with a high price tag and selling price point.
All the manufacturers mentioned above arent even in any of the western market. Period.
The most important factor, is that the western markets are no longer the growth engines that were in the 1990's. Toyota's bet on the US has played out disasterously this year. VW has more prudently played a much better Chinese game and it is the driver for this year and the coming future. Chinese companies themselves have realized that far from trying to sell to the US and Europe, the home game is the golden egg.

If i may simplify the market terminology - lets call them emerging markets. considering the turn around time for making cars in emerging markets and their ROI , toyota is definitely on the back foot. As china has demonstrated the market for 1.6 liter cars and less is where the action is. The same is true for India (South Asia)/ Africa .
A hybrid system that works in these conditions and is fairly cheap is the one that will hold.
Note: As a matter of policy, China doesent want to be more denpendent on Oil that is sold in Dolalrs and ships through sea lanes controlled by the US navy. Its move to get rid of taxes on 1.6l engine cars and and push hybrids is part of strategy to use their size as the largest market to be pioneers in energy management.
Obama's moves this week should be looked through the prism of the world market for automobiles. He has set up GM to not just regain US dominance but to truly be compettive in the world market.

Just a few "upscale" tweaks to the Nano and Tata will likely have a solid urban commuter for the USA in a couple years. Doing a "hybrid" version likely is also an option. Don't think I'd take one on the highway, but I thought that when I first saw the SmartforTwo. I've seen folks on the highway with them, crazy but their moving along the road.