Tata Motors Ltd. is developing a new electric vehicles division, and for that, the largest vehicle maker of India is reportedly raising as much as 1 billion USD.
As per sources close to the development, the business has been valued at around 7 billion USD.
Tata Motors Pushes Electric Vehicle Vertical; Will Invest 1 Billion USD
The manufacturer has already received the approval of the shareholders to separate ist passenger vehicle business in march. The process of transferring the EV portfolio into a separate arm has also begun and the investment will be dedicated towards the same.
In less than a period of four years, Tata Motors, in order to accelerate its presence in electric vehicles, is planning to launch 10 battery electric vehicles as revealed by the Chairman of Tata Motors, N Chandrasekaran.
While addressing the shareholders during the 76th annual report, the company has seen the penetration in electric vehicle (EV) doubling to 2 percent this year and is also expecting the penetration to increase exponentially in the coming years. Tata Motors plans to lead this change in the Indian market and come up with 10 new BEV vehicles.
Tata Motors To Add New Business And Products In EV
With two fully electric models Nexon EV and Tigor EV – in the market, Tata Motors is already the largest EV player in the country. With Nexon EV selling more than 4,000 units since its launch in January 2020, it has become India’s best-selling electric passenger vehicle. The electric version of the Altroz is expected to be launched in the coming months.
As per the sources, “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.”
Tata Motors’ investors are pressuring the manufacturer to support environmentally sustainable businesses. The company is planning to give the responsibility of the EV business of a valuation of Rs. 9417 crores to a separate entity. Sources have also revealed that the company will be adding a new line of business and products in the division in order to justify the valuation.
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