The car giant intended to name the vehicle 'Zica' but decided to re-brand it to reflect its claim to be a socially-responsible manufacturer.
'Zica' is a portmanteau of ‘Zippy Car’ and the vehicle is being dispatched to dealerships where it will be targeted at middle class consumers at around £3,500 and £4,000.
The hatchback will initially be branded 'Zica' for its public showcase at this week's Auto Expo 2016 in Delhi, but Tata will then register a new name with India's Registrar of Companies.
Marketing of the car began in November 2015 with the signing of Barcelona footballer Lionel Messi as the company's global brand ambassador.
In a statement, Tata Motors said: "Empathising with the hardships being caused by the ‘Zika’ virus outbreak across many countries, Tata Motors as a socially-responsible company has decided to re-brand the car."
Tata is India’s largest automobile company with consolidated revenues of £29.19bn in 2014-2015.
It also owns the Jaguar Land Rover brand which it acquired from Ford in 2008. In India, the company also produces the Tata Nano, one of India's cheapest cars at £1,740.
The Zika virus has been linked to a steep increase in the number of babies born with microcephaly, which causes abnormally small heads and brains.
Cases have so far been reported in 35 countries and territories, with Brazil among the worst affected.
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