The incorporation of TPEML is according to a binding agreement of the automaker with private equity firm TGP Rise Climate for an investment of Rs 7500 crore by TGP Rise Climate into a wholly-owned subsidiary of Tata Motors, as informed by Tata Motors in its earlier press release on October 12, 2021. Tata Motors informed their intent to use the proposed investment by TGP to partly fund investment of USD 2 billion (over Rs 16,000 crore) in the next five years in expanding its EV business with a plan to Introduce 10 new EVs(by FY 26).