Tata Motors to raise Rs 7,500 crore to expand passenger electric vehicle business

- Tata Motors to have 10 EVs by 2026

- TPG Rise Climate and co-investors to induct Rs 7,500 crore 

Tata Motors Limited has joined hands with TPG Rise Climate to incorporate a new subsidiary of Tata Motors that will channelise future investments into developing new electric vehicles, dedicated BEV platforms, and advanced automotive technologies. TPG Rise Climate along with its co-investors will fuse in an investment of Rs 7,500 crore and hold between 11 per cent to 15 per cent stake in the newly formed company. 

For consumers, this new entity will create a lineup of 10 electric vehicles in a span of five years. It will also expand the EV charging infrastructure to boost EV adoption in India. The first round of capital infusion is expected to be completed by March 2022 with the remaining funds to be infused by the end of 2022. 

Presently, the EV portfolio of the Indian carmaker comprises the top-selling Tata Nexon EV, Tata Tigor EV, and the Tata Xpres-T for the commercial fleet. We recently drove the Tata Tigor EV and you can read our detailed first-drive review here.

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 delights customers while meticulously creating a synergistic ecosystem. We are excited and committed to play a leading role in the Government’s vision to have 30 per cent electric vehicles penetration rate by 2030.”