Tata Motors' UK arm, Tata Motors European Technical Centre plc, has picked a 50.3 per cent stake in Miljo Grenland/Innovasjon, Norway, which specialises in the development of innovative solutions for electric vehicles, for around Rs 9.40 crore.

Miljo will produce electric vehicles based on Tata Motors' products, including the Indica EV, which is scheduled for launch in Europe during 2009.

Unlike existing electric vehicles, Indica EV will be capable of carrying four people upto 200 km and accelerate from 0 to 60 kmph in under 10 seconds.

Tata Motors will use polymer lithium ion batteries for the vehicle which will have superior energy density compared to the current electric vehicles.

Besides, Miljo will also engage in manufacturing high quality polymer lithium ion batteries and development of related technologies. 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.