Tata Motors incorporates new EV arm Tata Passenger Electric Mobility Ltd

Tata Passenger Electric Mobility Ltd (TPEML) is the newly incorporated 100 per cent subsidiary of the automotive giant Tata Motors Ltd. with an authorized capital of Rs 700 crore. The entire paid-up share capital will be held by TML.

Tata Passenger Electric Mobility Ltd (TPEML) is the newly incorporated 100 per cent subsidiary of the automotive giant Tata Motors Ltd. with an authorized capital of Rs 700 crore. The entire paid-up share capital will be held by TML. 

The Ministry of Corporate Affairs, Government of India has issued the Certificate of Incorporation on December 21, 2021. 

TPEML has been incorporated to manufacture, design, develop all kinds of services related to electric vehicles/electric mobility, hybrid electric vehicles of all kinds. 

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).

Tata Motors is leading the EV Revolution in India enjoying 70 per cent of the EV market share (FY 21) and owner of the leading EV model- Tata Nexon EV. The company foresees exponential growth in the EV market on account of favourable government policies and the steep increase in fuel prices leading to higher running costs for ICEs.

The stock  closed at Rs 472.25 with a gain of 0.37 per cent in today's trading session.