October 24, 2021

The World Live Breaking News Coverage & Updates IN ENGLISH

The World Live Breaking News Coverage & Updates IN ENGLISH

Tata Motors: In advanced stages to raise $1 billion for EV biz – Report

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, Tata Motors: In advanced stages to raise $1 billion for EV biz – Report, The World Live Breaking News Coverage & Updates IN ENGLISH
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, Tata Motors: In advanced stages to raise $1 billion for EV biz – Report, The World Live Breaking News Coverage & Updates IN ENGLISH

is in advanced stages to raise $1 billion through a stock sale of its electric vehicle unit, the Times of India reported on Friday. The planned fund-raise will value Tata Motors’ electric vehicle (EV) unit at $8 billion, said the report.

It has attracted multiple private equity funds from the US, Middle East and Southeast Asia. TPG, California Public Employees’ Retirement System, Temasek, among others, have held discussions to lead or co-lead the financing exercise, the newspaper reported citing unnamed sources.

The Tata Group flagship has been building the EV business at a rapid pace to ride on the government’s electric mobility plans and is now the largest EV maker in the passenger vehicle (PV) market. A spokesperson declined to comment on the development.

The major would announce its fundraising plans to support the EV business, N Chandrasekaran, chairman, Tata Motors, told shareholders at the company’s 76th annual general meeting in July. At present, EVs account for 2 per cent of the company’s PV sales.

The reports of raising funds comes close on the heels of the Productivity-Linked Incentive (PLI) scheme for the auto sector that incentivises manufacturers to make fresh investment in new technologies over the next five years.

has a very ambitious goal for EVs. We have planned at least 25 per cent of our total PV sales to come from electric in the medium to long term,” Chandrasekaran had said. As part of the plan, it would launch 10 EV models before 2025. “We have aggressive growth plans, and towards this, we will also raise capital at an appropriate time. The company is also looking to set up a battery plant outside of Tata Motors,” he had said.

The company has already launched the e-Tigor with a higher range earlier this year. It will also bring “more affordable” vehicles to target the mass market. Most other manufacturers, as of now, have their products positioned in the premium end of the market. Setting up 10,000 charging points in 25 cities with Tata Power in the coming years, is also in the works.

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