TPG to invest $1.5 billion in Tata Motors EV division

TusharK · 23rd December 2021, 12:54

Tata Motors sets up wholly-owned EV subsidiary

Tata Motors has incorporated a wholly-owned subsidiary, Tata Passenger Electric Mobility Limited (TPEML), which will handle its electric vehicle business, including the manufacturing of EVs.

TPG to invest alt=.5 billion in Tata Motors EV division-tata_motors_660_180521074050.jpg

According to the company, TPEML has been incorporated with an initial capital of Rs. 700 crore. The subsidiary will be involved in the manufacturing, design and development of all kinds of services related to EVs and hybrid electric vehicles.

Earlier this year, Tata Motors had announced that it would set up a new EV subsidiary with investments from TPG Rise Climate and ADQ. It would launch 10 new EVs over the next 5 years. The company would also collaborate with Tata Power Ltd. to set up charging infrastructure to facilitate rapid EV adoption in India.

Source: ET Auto

Link to Team-BHP News

padmrajravi · 23rd December 2021, 13:50

Doesn't this mean the original Tata Motors Passenger Car Division has to die a slow death once ICE cars cease to exist? I do understand the rationale behind this move though. It helps them to gather investments from other parties without the baggage of the PV division. This will probably help them establish industry partnerships as well.

volkman10 · 24th February 2023, 15:33

Tata Motors in talks to raise $1B via stake sale in EV business.

Tata is in talks with sovereign wealth funds and private equity investors to sell a significant minority stake in its EV business, eyeing a valuation of about $10.5 billion.

The funds and investors include the UAE-based Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company, the Saudi Arabia-headquartered Public Investment Fund, Singapore's Temasek Holdings, and KKR and General Atlantic.

Tata plans to use the bulk of the proceeds to retire a part of its outstanding debt and infuse a small portion as primary equity in the EV business.

India's car market is tiny compared to its population, with EVs making up just 1 percent of total car sales of about 3 million a year. The Indian government wants to grow this to 30 percent by 2030.

In 2021, Tata Motors raised $1 billion from TPG and Abu Dhabi state holding company ADQ for its EV unit at a $9 billion valuation, pledging to invest more than $2 billion in its EV business over five years.

Link

23rd December 2021, 12:54	#16
TusharK Senior - BHPian Join Date: Jul 2017 Location: Pune Posts: 6,245 Thanked: 55,558 Times	Re: TPG to invest $1.5 billion in Tata Motors EV division Tata Motors sets up wholly-owned EV subsidiary Tata Motors has incorporated a wholly-owned subsidiary, Tata Passenger Electric Mobility Limited (TPEML), which will handle its electric vehicle business, including the manufacturing of EVs. According to the company, TPEML has been incorporated with an initial capital of Rs. 700 crore. The subsidiary will be involved in the manufacturing, design and development of all kinds of services related to EVs and hybrid electric vehicles. Earlier this year, Tata Motors had announced that it would set up a new EV subsidiary with investments from TPG Rise Climate and ADQ. It would launch 10 new EVs over the next 5 years. The company would also collaborate with Tata Power Ltd. to set up charging infrastructure to facilitate rapid EV adoption in India. Source: ET Auto Link to Team-BHP News Last edited by TusharK : 23rd December 2021 at 12:55.
	(9) Thanks

23rd December 2021, 13:50	#17
padmrajravi Senior - BHPian Join Date: May 2019 Location: Kozhikode Posts: 1,227 Thanked: 5,511 Times	Re: TPG to invest $1.5 billion in Tata Motors EV division Doesn't this mean the original Tata Motors Passenger Car Division has to die a slow death once ICE cars cease to exist? I do understand the rationale behind this move though. It helps them to gather investments from other parties without the baggage of the PV division. This will probably help them establish industry partnerships as well.
	(5) Thanks

24th February 2023, 15:33	#18
volkman10 Distinguished - BHPian Join Date: Dec 2010 Location: -- Posts: 23,403 Thanked: 67,765 Times View My Garage	Tata looking to raise $1 Billion by selling stake in its EV business Tata Motors in talks to raise $1B via stake sale in EV business. Tata is in talks with sovereign wealth funds and private equity investors to sell a significant minority stake in its EV business, eyeing a valuation of about $10.5 billion. The funds and investors include the UAE-based Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company, the Saudi Arabia-headquartered Public Investment Fund, Singapore's Temasek Holdings, and KKR and General Atlantic. Tata plans to use the bulk of the proceeds to retire a part of its outstanding debt and infuse a small portion as primary equity in the EV business. India's car market is tiny compared to its population, with EVs making up just 1 percent of total car sales of about 3 million a year. The Indian government wants to grow this to 30 percent by 2030. In 2021, Tata Motors raised $1 billion from TPG and Abu Dhabi state holding company ADQ for its EV unit at a $9 billion valuation, pledging to invest more than $2 billion in its EV business over five years. Link Last edited by volkman10 : 24th February 2023 at 15:35.
	(6) Thanks

Thread Tools	Search this Thread
	Search this Thread: Advanced Search