Tata Motors has announced the establishment of a new wholly owned subsidiary, Tata Passenger Electric Mobility Limited (TPEML), which would focus on the production of electric vehicles. On December 21, 2021, the Ministry of Corporate Affairs granted a certificate of establishment for the company. The subsidiary has been formed to manufacture, design, and develop all types of services linked to electric vehicles (EVs) and electric mobility, as well as hybrid electric vehicles of all types and descriptions for transporting passengers and other persons. TPEML was established with a Rs 7 billion authorised capital of 700 million equity shares of Rs 10 each. TPEML will also manufacture, design, and develop all types of electric vehicle/electric mobility, as well as hybrid electric cars.
In October 2021, Tata Motors announced plans to invest over $2 billion in its EV industry over the next five years. Part of the reason for the increased investment in India’s e-mobility sector is because of lucrative government programmes. For example, the Ministry of Heavy Industries (MHI) recently announced that the second phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (Fame) scheme has incentivised a total of 1.85 lakh EVs. Prior to that, Tata Motors also signed a Memorandum of Understanding with BluSmart Mobility, a ride-hailing mobility service, for expanding their all-electric fleet across Delhi NCR. Tata will supply 3,500 XPRES-T EVs as part of the deal.