To Manufacture Electric Motor Vehicles, TATA Motors Forms New Subsidiary

The Tata Motors has recently made an announcement about, it would be incorporating a wholly owned subsidiary, Tata Passenger Electric Mobility Ltd (TPEML) which would be manufacturing electric motor vehicles.

The Ministry of Corporate Affairs has issued the Certificate of incorporation for the same on 21st December, 2021, the auto major has stated this, in a regulatory filing on Wednesday.

The subsidiary has been incorporated, so that it can manufacture as well as design, develop varied kinds of services relating to electric vehicles/electric mobility as well as electric vehicles of varied kinds and all descriptions for carrying passengers or other personnel.

The Tato Motors, which would be the promoter of TPEML, will hold about 100% share capital in the new electrical vehicle (EV) unit. This new subsidiary has been incorporated having initial capital of about Rs 700 crore, the Tata Motors added in the exchange filing.

The TPEML has been incorporated having authorized capital of nearing 70,00,00,000 equity shares of Rs.10 each, aggregating to RS. 700,00,00,000. The entire paid up share capital would be held by TML, Tata motors have added.

The company in the month of October this year, has made announcement about its plans to infuse more than 2 billion in its EV business over the next 5 years after the Indian automaker has made the announcement that it had raised funds from the private equity firm TPG.

The TPG's Rise Climate Fund as well as Abu Dhabi state hold company ADQ had agreed to pump in nearing to one billion to expand the Company's EV business for which may create a separate unit, as per the automaker.