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Tata Motors enters EV space under subsidiary- Tata Passenger Electric Mobility Ltd.

By Saima Siddiqui 
Updated Date

New Delhi: India’s leading car maker, Tata Motors, which successfully sold out 10k Electric Vehicles earlier this year in September, is expected to significantly increase its competition in EV space in coming years. Amid the threat from rivals EV ecosystem in the country, the automobile giant has formed a new wholly-owned subsidiary named Tata Passenger Electric Mobility Limited (TPEML).

Also Read :- Tata Motors to increase prices of passenger vehicles from Monday

The new entity will commence operations with initial capital of Rs 700 crore. Necessary approval for the new arm has been received from Ministry of Corporate Affairs. TPEML focus areas TPEML will cater to all aspects of R&D, design, development, manufacturing, assembly, fabrication, sales, marketing, after sales services and servicing of electric vehicles. This will be applicable for hybrid electric vehicles as well. The company will look into design and development of motors, parts, components, accessories and other related equipment. It can also consider development of other types of vehicles that are powered by electricity or solar energy. This indicates that TPEML has a much larger agenda in mind and is not limited to manufacturing of passenger EVs.

So far, quite a few electric cars are currently available in the market such as Jaguar I-Pace, Porsche Taycan, Audi e-Tron GT and Mercedes-Benz EQC electric SUV. Though, these are not a threat to Tata Motors current EV portfolio, however things can change if and when the company decides to target the premium EV space.

Notably, one of the early entrants in EV space, Tata currently leads with market share of around 70%. A significant percentage of the company’s EV sales comprise Tata Nexon EV, which is expected to face some stiff competition soon. Tata Motors also has Tigor EV, which was recently updated with visual enhancements and more capable powertrain.

Meanwhile, carmakers like MG Motor, Kia, Hyundai and Mahindra are working on their respective entry-level electric cars. To begin with, Hyundai plans to introduce six new EVs in Indian market. At least one of these will rival Tata Nexon EV. While, MG Motor is also said to be working on a mass-market EV that will rival Nexon EV. MG’s second EV for India is expected to be priced in the range of Rs 10-15 lakh.

Also Read :- India 2nd largest car manufacturer company Tata Motors again hikes prices of passenger vehicles on rising input cost

MG currently has the ZS EV in India, which is the second bestselling EV in the country. Tata Passenger Electric Mobility Limited (TPEML) will be actively evaluating all these emerging threats and will collaborate with its parent company to add more EVs to the existing portfolio.

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