Asian Tech Press (Oct 13) -- Indian automaker Tata Motors Ltd (NSE: TATAMOTORS) will set up a subsidiary for passenger electric vehicles, with plans to launch 10 new EVs for the next five years.

Tata Motors announced Tuesday that it has raised 75 billion rupees ($997 million) from private equity firm TPG's fund Rise Climate and Abu Dhabi's state holding company ADQ, as it seeks to expand its electric passenger mobility business.

In that announcement, the company said that it will launch 10 new electric vehicle models over the next five years.

Under the deal, the investors TPG and ADQ will take an 11% to 15% stake in Tata Motors' newly-formed electric vehicle company, with equity valued at up to $9.1 billion.

According to a Reuters report updated on Wednesday, Tata Motors plans to invest more than $2 billion over the next five years in its electric vehicle business.

Spurred by the news, Tata Motors stock soared. As of press time, the company's shares were up 20.96% at INR 509.05($6.77) per share.

(US$1 = 75.1961 Indian rupees)