TATA group owned Tata Motors has acquired a 50.3% stakes in Miljo Grenland/Innovasjon for Rs 9.4 crore. TATA Motors's UK arm would provide the required funds for the acquisition. Miljo is a Norway-based electric vehicle major. It was founded in 1997 to provide zero emission vehicles. It would start a new era of battery-operated vehicles in the Indian market. India is still lagging behind in electric vehicles category due to non-availability of required technology.

Miljo would provide technical assistance for Tata Motors' products. It would also provide super lithium ion batteries and developing related technologies. The company would help TATA motors to capture the electric car market. First e-car is likely to come in the European market in 2009. Indica EV would be the first electric car launched by the company. It would seat four persons with acceleration of 0-60 kmph.

Some international companies such as General Motors, Toyota, Honda, Nissan-Renault and Fuji Heavy Industries are already working on e-cars. E-cars would help to cut the production cost as well as fuel cost.