NEW DELHI: Home-grown auto major Tata Motors has incorporated a wholly-owned subsidiary, Tata Passenger Electric Mobility Limited (TPEML), with an initial capital of Rs 700 crore to lead its electric vehicle (EV) ambitions. Tata Motors, the promoter of TPEML, would hold 100% share capital in the EV unit.
“TPEML has been incorporated to manufacture, design, develop all kinds of services related to electric vehicles/electric mobility, hybrid electric vehicles of all kinds and all descriptions for carrying passengers or other personnel, whether propelled, moved, drawn or assisted by means of electricity, battery, solar energy, or any other power devices whatsoever,” Tata Motors said in a regulatory filing.
At present, Tata Motors, with a portfolio of 3 EV models, controls over two-third of India’s small but fast-growing electric passenger vehicles market. In October this year, the automaker had unveiled its plans to invest to the tune of $2 billion in its EV business over the next five years during which they aim to have a portfolio of 10 EVs. US-based private equity investor TPG Capital and others have already committed investment of over Rs 7,500 cr in Tata’s EV subsidiary.
Tata’s advancement in the EV business comes at a time when other carmakers are working to launch battery run four-wheelers in India. Earlier in the month, Hyundai said that it is planning to invest Rs 4,000 crore for R&D towards the expansion of its battery electric vehicle portfolio.