Tata Motors buys control of Miljo

By Joe Leahy in Mumbai
Published: October 14 2008 17:10

India’s Tata Motors has moved a step closer to realising its plan to release an electric vehicle into the European market with its acquisition on Tuesday of a controlling stake in a small Norwegian electric vehicle company, Miljo Grenland/Innovasjon.
Tata Motors’ UK subsidiary, Tata Motors European Technical Centre, will pay Rs94m ($2m) for a 50.3 per cent stake in Miljo, a specialist in polymer lithium ion batteries.

The Norwegian company will produce electric vehicles based on Tata Motors’ products, with the first slated to be the Indica EV, a sedan to be launched in Europe next year.
“Unlike existing electric vehicles, Indica EV will be a more practicable option for the consumer; capable of carrying four people, adequate luggage space, with a predicted range of up to 200 kilometres and acceleration of 0-60 kmph in under 10 seconds,” Tata Motors said in a statement.
The move comes as Indian automakers are increasingly looking to target the European market with low-cost and electric vehicles.
Maruti Suzuki, India’s largest carmaker, and Japan’s Nissan Motor are showcasing Indian-made city cars destined for customers in Europe next year, while Indian automaker, Argentum Motors, is exploring the idea of selling electric cars .
The Suzuki Alto and Nissan Pixo will be made at a factory in Manesar, northern India, under a partnership agreement and will mark the country’s first large-scale foray into car exports to western Europe.
Tata Motors, once better known for the simple but sturdy trucks that are ubiquitous throughout India, has become a major carmaker in recent years.
Copyright The Financial Times Limited 2008