Tata Motors sets up EV subsidiary with Rs 700 crore capital
The new subsidiary will manufacture, design, develop all kinds of services related to EVs e-mobility and hybrid EVs for people movement.
Tata Motors, which is the leading player in the electric passenger vehicle market, has been looking to further benefit from the early mover advantage to lead the expected e-mobility revolution in PVs.
Now the company has incorporated a wholly-owned subsidiary christened Tata Passenger Electric Mobility with a capital of Rs 700 crore. According to Tata Motors, the new subsidiary will manufacture, design, develop all kinds of services related to EVs, e-mobility and hybrid EVs for people movement.
It was in early October that Tata Motors had entered into a binding agreement with TPG Rise Climate along with its co-investor ADQ, are to invest in a newly incorporated subsidiary of Tata Motors. TPG Rise Climate along with co-investors will invest Rs 7,500 crore in compulsory convertible instruments to secure between 11 % to 15 % stake in this company, translating to an equity valuation of up to $9.1 billion (Rs 67,349 crore).
The company is fully plugged in to the growth story and at half-way stage in FY2022 had already crossed its FY2021 sales total of 4,219 units. Between April and September 2021, 4,419 Tata EVs had been sold, accounting for 70.57% of the total EV sales in first-half FY2022. At this point, the Nexon EV – India’s best-selling EV – had 3,618 units to its credit and a 58% market share, while the Tigor EV with 801 units had 13% and was third-placed on the EV sales chart after the MG ZS EV.
Tata Motors EVs have maintained the growth momentum in October 2021 and November 2021 with 1,586 units and 1,751 units respectively through three models – Nexon, Tigor and the X-Pres T EV – taking its eight-month (April-November) total to 7,756 units.
The company has expanded its portfolio with the addition of the Tigor EV which was launched on August 31 at an aggressive Rs 11.99 lakh. Also, recognising the growing demand from fleet users, Tata introduced the Xpres-T EV in mid-September. On October 29, the company bagged a supply order from Delhi-NCR electric fleet operator BluSmart for 350 Xpres-T EVs.
Also read: EValuating Tata Motors’ electric bet
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