Tata Motors to Raise $1BN in its Passenger Electric Vehicle Business

by IndianAuto Team | 12/10/2021
Share this post:
TPG Rise Climate along with co-investors shall invest INR 7,500 crore in compulsory convertible instruments to secure between 11% to 15% stake.

Tata Motors Ltd (TML) and TPG Rise Climate have entered into a binding agreement whereby TPG Rise Climate along with its co-investor ADQ, shall invest in a subsidiary of Tata Motors that will be newly incorporated. TPG Rise Climate along with co-investors shall invest INR 7,500 crore in compulsory convertible instruments to secure between 11% to 15% stake in this company translating to an equity valuation of up to $9.1 billion.

tata-motors-passenger-electric-vehicle

The new company shall leverage all existing investments and capabilities of Tata Motors Ltd and will channelise the future investments into electric vehicles, dedicated BEV platforms, advanced automotive technologies and catalyse investments in charging infrastructure and battery technologies. Over the next 5 years, this company will create a portfolio of 10 EVs and in association with Tata Power Ltd, catalyse the creation of widespread charging infrastructure to facilitate rapid EV adoption in India.

ALSO READ

Tata Motors Rolls Out 100,000th Altroz from its Pune Plant

N Chandrasekaran, Chairman Tata Motors Ltd, commented, “I am delighted to have TPG Rise Climate join us in our journey to create a market-shaping electric passenger mobility business in India. We will continue to proactively invest in exciting products that delight customers while meticulously creating a synergistic ecosystem. We are excited and committed to play a leading role in the Government’s vision to have a 30% electric vehicles penetration rate by 2030.”

Jim Coulter, Managing Partner TPG Rise Climate and Founding partner of TPG, commented, “We are excited to partner with Tata Motors on their mission to lead the electrification of passenger mobility in India. There is significant momentum around India’s EV movement, supported by the Government’s vision and policies, as well as growing consumer demand for greener solutions. The investment aligns with TPG Rise Climate’s focus on decarbonized transport and builds on TPG’s long history in India.”

Tracking icon
Would you like to receive notifications with latest news and car deals from IndianAuto?