Tata Motors, the country’s second largest auto maker, recently announced that it has received an investment of Rs 3,750 crore from private equity fund TPG Rise for its EV subsidiary Tata Motors Electric Mobility Limited. The company said in an exchange filing that the March 30 subsidiary would cost Rs 1,000 each for an overall consideration of Rs 3,750 crore.
The brand-new electric SUV concept came alive on 06.04.2022 at 12 PM IST. https://t.co/X5Nuv2Reca
– Tata Passenger Electric Mobility Limited (@Tatamotorsev) April 2, 2022
The Rs 3,750 crore investment is the first step in investing Rs 7,500 crore from a private equity firm. In October last year, the maker of the best-selling subcompact SUV Nexon said that investors, including ADQ, would deposit cash in TML EV Co. through a mandatory convertible instrument at 11-15 percent interest on the newly created entity, with an equity value of up to $ 9.1 billion.
Last year, Tata Motors acquired Tata Passenger Electric Mobility Limited (TPEML), a wholly owned subsidiary for the production, design and development of all types of services related to EVs, e-mobility and hybrid EVs for human movement. The company announced at the time of its announcement that TPEML has been incorporated with a capital of Rs 700 crore.
In early October last year, Tata Motors announced that it would invest over $ 2 billion in its electric vehicle (EV) business over the next five years. TML made the announcement after investing billions of dollars in private equity firm TPG and its co-investor, Abu Dhabi State Holding Company ADQ. The investment was made to expand the company’s EV business as an independent partner.
Tata Motors is currently the largest electric car manufacturer and retailer in the country, selling more than 10,000 EVs since launching its first electric model, the Tigor EV in 2019. As it stands, the firm has about 700 charging stations and more than 120. Cities, but the company is working on plans to increase this number in the near future. The business, however, said it would enlist the help of sister companies such as Tata Power, Tata Chemicals, and Tata Consultancy Services (TCS) for end-to-end solutions to develop the EV area.
The Tata Group is also building a lithium-ion battery facility in Gujarat to enhance its independence. The project will be completed with the firm’s budget of Rs 4,000 crore. The factory will cover an area of 126 acres and will be located at Dhalera village in Ahmedabad district. Tata is also in the process of building a power-saving facility for mobility and static charging.
Tata Motors is now the only car maker in the country with an official brand dedicated to EV. However, Tata’s current EV range includes the subcompact car Tigor EV and the subcompact SUV Nexon EV, the cheapest EVs on the market.