Tata Motors Stakes Claim in Solar Power Ventures to Cut Costs and Carbon Footprint

Tata Motors Limited has struck a landmark deal to acquire a 26% equity stake in two solar power special-purpose vehicles (SPVs) promoted by Tata Power Renewable Energy Ltd. The investments – ₹10.41 crore in TP Paarthav Limited and ₹28.78 crore in TP Marigold Limited – mark a strategic shift towards captive renewable energy sourcing, aimed at stabilising power procurement costs and advancing the company’s carbon-reduction targets.

Under the Share Subscription and Shareholders’ Agreement executed on September 9, 2025, Tata Motors, along with wholly owned subsidiaries Tata Motors Passenger Vehicles Limited (TMPVL) and Tata Passenger Electric Mobility Limited (TPEML), will partner with Tata Power Renewable Energy Ltd’s SPVs over two phases. The TPPL acquisition will close within six months, while the TPML transaction is slated for completion within 24 months. Both entities are yet to commence commercial operations, but they bring solar power generation capabilities that can be harnessed to offset grid electricity consumption.

This move is significant for Tata Motors, whose production facilities rely heavily on grid power. By deploying renewable energy directly from SPVs, the automaker expects to not only achieve cost efficiencies—shielding operations from volatile fossil-fuel-based tariffs—but also meet its Scope 2 emissions commitments under the Tata Group’s broader sustainability agenda.  Captive solar sourcing can reduce energy costs by up to 15% over conventional supply, while curbing greenhouse-gas emissions proportional to the solar capacity deployed.

On the stock market, Tata Motors shares traded at ₹719.50 on September 8 and closed slightly lower at ₹715.55 on September 9, reflecting a modest dip of 0.55% amid overall market headwinds.