Business
Bhaswati Guha Majumder
Dec 24, 2021, 01:37 PM | Updated 01:39 PM IST
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Tata Motors has established a wholly-owned subsidiary, Tata Passenger Electric Mobility (TPEML), with a capital of Rs 700 crore for its EV operations. According to reports, the new subsidiary will design, develop and produce all types of EV and e-mobility services.
The company's certificate of incorporation was issued by the Ministry of Corporate Affairs on 21 December 2021, according to a regulatory filing.
Tata Motors, the promoter of TPEML, would own 100 per cent of the EV unit, according to the manufacturer. It was founded with a capital of Rs 700 crore as its initial investment.
Tata Motors stated in a BSE filing: “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.”
Additionally, Tata Motors said: “TPEML has been incorporated with an authorised capital of 70,00,00,000 equity shares of INR10 each aggregating to INR 700,00,00,000. The entire paid-up share capital will be held by TML.”
Earlier in October, Tata Motors revealed its ambitions to invest more than $2 billion in its EV business over the next five years, after raising financing from private equity company TPG. According to the automaker, TPG's Rise Climate Fund and Abu Dhabi state holding company ADQ had agreed to invest around $1 billion to boost the company's EV business, which would be separated into its own subsidiary.
As reported, Tata's new electric division will introduce longer-range EVs. While the Nexon EV and Tigor EV are examples of the business's current ICE (internal combustion engine) automobiles being converted to EVs, the company is hoping to shift to "modular multi-energy" platforms in the future.
It was also said that Tata intends to have 10 electric vehicles in its portfolio by FY2026, accounting for 25 per cent of total sales. It has already shown off the Altroz EV and hinted that an all-electric Punch is in the works as well.
In the case of Tata EVs’ sales performance, the company has already surpassed their FY2021 EV sales total of 4,219 units at the midway point in FY2022.
According to Autocar India, 4,419 Tata EVs were sold between April and September 2021, accounting for 70.57 per cent of all EV sales within that time period. The Nexon EV had 3,618 units and a 58 per cent market share at this point, while the Tigor EV had 801 units with 13 per cent and was third on the EV sales chart after the MG ZS EV.
Through three models – Nexon, Tigor, and the sedan's commercial variant (the X-Pres T EV) – Tata Motors EVs have maintained the growth route in October 2021 and November 2021, with 1,586 and 1,751 units respectively, bringing their eight-month total (From April to November) to 7,756 units.
However, Tata Motors's stock last traded at Rs 470.50 on the BSE, up from Rs 453.55 at the previous close. The stock hit an intraday top of 471.90 and a low of 458.55 during the trading day. At the same time, the net turnover was Rs 726,305,619.