Tata Motors incorporates subsidiary for Smart City Mobility Solutions

by 5paisa Research Team Last Updated: 2022-06-02T22:52:57+05:30

Tata Motors incorporated a fully owned subsidiary “TML Smart City Mobility Solutions Limited”. The core idea of floating this company is to undertake urban mass mobility business. This will be conducted using its “Own, Operate, Maintain (OOM) model. Tata Motors will use the launch TML Smart City Mobility Solutions Limited to bring specific and calibrated focus to its Electric Vehicles (EV) segment.

Tata Motors already has a EV unit but that is focused largely on the passenger car segment. Now, the ideas is that it also aggressively offers EV solutions as a service offering across its portfolio of commercial vehicles.

One big segment that Tata Motors will now cater to will be the existing State Transport Units (STUs) and government fleets. But that will be the low hanging fruit for Tata Motors. It will look at a more comprehensive picture. 

To begin with,  TML Smart City Mobility Solutions Limited will cater to all business opportunities across passenger mobility applications. Tata Motors already has more than 650 EV buses plying on roads across various cities in India.

This buses have already provided a cumulative coverage of more than 35 million kms. Out of these EVs, the Tata Motors group has actually operationalized more than 250 EV buses during the fiscal year FY22.

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According to a press release issued by the company, its recently incorporated 100% subsidiary, TML Smart City Mobility Solutions Ltd is seeing a great deal of interest from the government as well as vehicle manufacturers.

The government has been quite aggressive about pushing most of the government owned fleets of cars and buses to the EV module soon to make it greener and also set benchmarks for the private sector to follow.

What exactly would TML Smart City Mobility Solutions Limited do? The specialized company plans to manufacture, design, develop, automotive vehicles. This will broadly include electric, diesel, CNG, hybrid, new energy vehicles (including hydrogen fuel cell) etc.

It will also include vehicles that are propelled or assisted by means of other sources or energy or fuel. In short, it will cover any vehicle that reduces the carbon footprint.

TML Smart City Mobility Solutions Limited has been incorporated with an initial capital of Rs5 crore. It needs no reiteration that Tata Motors is already pushing for electric cars in a big way. For instance, its Nexon EV is one of the best-selling eclectic cars in the country and has over 80% market share among EVs in India. According to FADA (Federation of Automobile Dealership Associations of India), the EV space collectively grew 257% in FY22.

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