Tata Motors picks up majority stake in Norwegian firm

Mumbai: Tata Motors has picked up a majority stake in Norway-based Miljo Grenland/Innovasjon, which specialises in developing solutions for electric vehicles.

Tata Motors’ UK subsidiary, Tata Motors European Technical Centre, has acquired a 50.3 per cent in Miljo for Rs 9.4 crore, said a release from the company.

The existing shareholders will retain the balance shares and will continue to be associated with the venture.

Miljo will produce electric vehicles based on Tata Motors’ products, besides manufacturing polymer lithium ion batteries and developing related technologies, the release said.

Tata Motors has been working with this company to develop the electric version of the Indica.

There have been reports that Tata Motors has been working with Miljo Grenland to develop an electric-Nano too. European countries have shown an interest in an electric version of the Nano.

“We are looking at the creation of an electric car. This financial year we are doing it for Norway. And we hope to launch it in other markets in the next financial year,” Mr Ratan Tata had said at the company’s annual general meeting in July.

The first electric vehicle to be developed by the company will be the Indica EV. It is scheduled for launch in Europe during 2009.

“Unlike existing electric vehicles, the Indica EV will be a more practicable option for the consumer; capable of carrying four people, with adequate luggage space, a predicted range of up to 200 km and acceleration of 0-60 kmph in under 10 seconds,” said the release.

About the possible India launch of the Indica EV in 2009, a Tata Motors spokesperson said the company was yet to decide on that.

“Tata Motors believes that this investment in Miljo will help the company realise its strategy to develop convenient, affordable and sustainable mobility solutions through electric and hybrid vehicles,” it said.

Asked about earlier tie-ups that Miljo had entered into with other companies to develop and produce electric vehicles, the spokesperson said “there used to be some contracts like that. Now that Tata Motors has acquired the majority stake they will produce only for Tata Motors.”