Tata Motors Invests Rs. 700 Crore In A New EV Division

Tata Motors has invested Rs. 700 crore in a new wholly-owned subsidiary to develop and manufacture electric vehicles (EVs). The company has formed a new division - Tata Passenger Electric Mobility Limited (TPEML) and received the certificate of incorporation from the Ministry of Corporate Affairs on December 21. It goes without saying that as of now Tata Motors will be the only promoter of TPEML since it holds 100n per cent share capital in the EV unit. In a BSE filing, the carmaker said that TPEML has been incorporated with an authorised capital of 70,00,00,000 equity shares of Rs. 10 each which equals to Rs. 700 crore.

Also Read: TPG Rise Climate, ADQ To Invest ₹ 7,500 Crore In Tata Motors New EV Unit

TPEML will focus on development and manufacturiong of new EVs.

Explaining about the goals and purpose of the new subsidiary, in the BSE filing the company said, "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; engines, motors, parts, components, accessories and related equipment thereof, as well as activities required for establishing and undertaking the assembly, manufacture, fabrication, sales, after sales services, marketing, promoting and/or servicing facilities."

Also Read: Tata Motors To Invest $2 Billion In EVs After Fundraise From TPG

Earlier in October this year, the company had shared plans regarding investing around 2 Billion USD in electric vehicles business over the next fives years. Tata Motors had also raised funds from private equity firm - TPG around the same period and had agreed to invest around 1 Billion USD for expansion of its EV business.