Tata Motors to Acquire 26% Stakes in Tata Power Units for Renewable Energy Push

Tata Motors Limited, along with its subsidiaries Tata Motors Passenger Vehicles Ltd. (TMPVL) and Tata Passenger Electric Mobility Ltd. (TPEML), has announced agreements to acquire minority stakes in two Tata Power subsidiaries. The move is part of the automaker’s strategy to optimise energy use, lower costs, and reduce its carbon footprint through renewable power adoption.

Stake Acquisitions and Deal Details

The company signed agreements with Tata Power Renewable Energy Ltd. (TPREL) to purchase a 26% equity stake in each of its subsidiaries, TP Paarthav Ltd. (TPPL) and TP Marigold Ltd. (TPML). 

Tata Motors will invest ₹10.41 crore in TPPL, buying 1,04,05,879 shares at ₹10 each, and ₹28.78 crore in TPML, acquiring 2,87,80,609 shares at ₹10 apiece. Both acquisitions will be made in cash. Following the transactions, TPPL and TPML will become associate companies of Tata Motors, although the deals are not classified as related-party transactions.

Background and Purpose of the Acquisition 

TPPL was incorporated in September 2023, while TPML was established in October 2023. Both are wholly owned subsidiaries of TPREL and are yet to commence operations. They have been set up with a focus on solar and captive power generation, with approvals covering multiple renewable energy avenues. Tata Motors stated that the acquisitions aim to replace grid power with more sustainable, cost-effective sources, strengthening the company’s clean energy footprint in India’s power sector.

Completion Timeline and Strategic Benefits 

The stake in TPPL is expected to be completed within six months of signing the agreement, while the TPML deal has a longer horizon of up to 24 months. No regulatory approvals are required for either transaction. 

According to the company, the initiative is aligned with its long-term sustainability roadmap, which includes progressively sourcing energy from renewables and reducing overall operational emissions. By leveraging Tata Power’s renewable expertise, Tata Motors expects to gain cost efficiency and long-term energy security.

Read More: Tata Capital Plans $2 Billion IPO in September, Targets $11 Billion Valuation!

Tata Motors Share Price Performance 

As of September 10, 2025, at 9:44 AM, Tata Motors share price is trading at ₹714.50 per share, reflecting a decline of 0.15%. Over the past month, the stock has gained by 9.29%.

Conclusion

Through these acquisitions, Tata Motors is positioning itself as not just an automotive leader but also a forward-looking player in the clean energy transition. With solar-based power expected to play a crucial role, the company’s partnerships with Tata Power subsidiaries signal a decisive step towards sustainability and efficiency in its operations.

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