Tata Motors Forms New EV Subsidiary: Tata Motors Electric Mobility Ltd

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Auto major Tata Motors on Wednesday informed that the company has incorporated a wholly owned subsidiary, Tata Passenger Electric Mobility Limited, which will be involved in manufacturing of electric motor vehicles. The Ministry of Corporate Affairs has issued the certificate of incorporation for the same on December 21, 2021.

The subsidiary has been incorporated to manufacture, design, develop all kinds of services related to electric vehicles (EV)/electric mobility, hybrid electric vehicles of all kinds and all descriptions for carrying passengers or other personnel.

Tata Motors, which will be the promotor of Tata Passenger Electric Mobility (TPEML), would hold 100% share capital in the EV unit. TPEML has been incorporated with the initial capital of ₹700 crore, the Tata Group’s auto unit announced in an exchange filing.

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“TPEML has been incorporated with authorized capital of 70,00,00,000 equity shares of ₹10/- each aggregating to ₹700,00,00,000/-. The entire paid-up share capital will be held by TML,” Tata Motors added.

In October this year, Tata Motors had unveiled its plans to invest over $2 billion in its electric vehicle (EV) business over the next five years. The rising investments in India’s e-mobility sector may be attributed in part to lucrative government schemes. For instance, the ministry of heavy industries (MHI) recently informed that a total of 1.85 lakh electric vehicles (EVs) have been incentivised under the second phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (Fame) scheme till now.

The government had rolled out the ₹10,000 crore Fame scheme, which is designed to support the electrification of public and shared transport and help create a charging infrastructure. The scheme is an important part of the government’s strategy to reduce vehicular emissions and dependence on fossil fuels. Money allocated under Fame-2 is to be spent to subsidize 500,000 electric three-wheelers, 1 million electric two-wheelers, 55,000 electric passenger vehicles and 7,090 electric buses.

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“In the calendar year 2021, a total of 1.4 lakh electric vehicles (1.19 lakh electric two-wheelers, 20,420 electric three-wheelers and 580 electric four-wheelers) have been incentivized upto 16 December 2021 amounting to an incentive of about ₹500 crore under Phase-11 of Fame. A total of 1.85 lakh electric vehicles have been incentivized under Fame II till now,” MHI said in its year-end review.

The scheme’s first phase began on 1 April 2015 and was extended till 31 March 2019, and the second phase (Fame-2) that began on 1 April 2019 was to end on 31 March 2022. Mint earlier reported about the central government plans to extend its ambitious scheme to promote electric mobility by two years till 31 March 2024.

“Allocation of ₹1000 crore has also been made under FAME II for provision of EV charging stations,” MHI said in its year-end- review and added, “FAME India II Scheme was redesigned in June 2021 based on experience particularly during Covid-19 pandemic and feedback from industry and users. The redesigned scheme aims at faster proliferation of Electric Vehicles by lowering the upfront costs.”