Tata Motors has completed the formation of an electric vehicle subsidiary Tata Passenger Electric Mobility (TPEML) following the successful incorporation of the new company.
TPEML which will exclusively look into passenger electric and hybrid vehicles, has been formed with an authorised share capital of ₹700 crore.
Tata Motors will hold 100 percent shares of TPEML. The Ministry of Corporate Affairs, Government of India 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, Tata Motors said in a regulatory filing.
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In October Tata Motors raised $1 billion from investors TPG Rise Climate and ADQ by agreeing to sell 11-15 percent stake in TPEML thus valuing the unlisted company at around 9.1 billion.
This new EV company will not own any manufacturing plants of its own but will instead rely on the passenger vehicle factories for output and remain asset-light.
Tata Motors’ passenger vehicle business will benefit from the fees paid to it by the TPEML for using its brand and IP. These arrangements will be done on an arm’s length basis. Tata Motors’ current generation products like the Nexon EV and Tigor EV will continue to be manufactured from their current locations.
TPEML plans to have 10 products by FY26 which will be a mix of different body styles and different drive ranges. Tata Motors is the leader in the passenger EV segment with a market share of 71 percent. The company is clocking sales of more than 1,000 units of EVs every month. During FY21, the company had clocked revenues of ₹500- ₹600 crore in the EV business.
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