News Update

Tata Motors Seeks To Raise $1 Billion For New EV Biz

• ByStartupStory     |    August 13, 2021

Tata Motors seeks to raise $1 billion for new EV biz and values the prospect at $7 billion. Tata Motors got approval from its shareholders that it can separate its passenger vehicle business in March, so they are now in the process of transferring the EV section as a step-down arm through which this proposed investment will be raised. “The talks are at an early stage, and several global PE firms, including Blackstone Group, TPG Capital and KKR & Co., have been approached, the company is also in the process of hiring an adviser and is in talks with several global investment banks,”  said a close source. Tata Motors investors have also forced the company to be a part of this new segment of environmentally conscious cars and hence the move by the auto making company. 

Tata Motors chairman N. Chandrasekaran announced at the 76th AGM meeting recently the funding plan for the EV unit and he also shared his plans of launching at least 10 EV models by 2025. Tata Motors is in the process of taking the passenger vehicle business, including the EV division, to a new entity, valuing the business at ₹9,417 crore. According to ratings firm Crisil, the domestic passenger vehicle business, with its marginal presence and high capex needs, has been a drag on the firm. However, the business has been turning around with models such as Tiago, Nexon and Harrier gaining traction. PV sales rose 33% in the nine months through December 2020 from a year ago, helping the company lift its market share to 7.8%. Tata Motors is also exploring the possibility of inducting a strategic partner for new product development.

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