AIRLINK 59.74 Decreased By ▼ -0.46 (-0.76%)
BOP 6.27 Increased By ▲ 0.02 (0.32%)
CNERGY 4.39 Increased By ▲ 0.33 (8.13%)
DFML 15.91 Increased By ▲ 0.16 (1.02%)
DGKC 71.25 Increased By ▲ 3.00 (4.4%)
FCCL 18.44 Increased By ▲ 0.82 (4.65%)
FFBL 26.10 Increased By ▲ 0.60 (2.35%)
FFL 9.15 Increased By ▲ 0.06 (0.66%)
GGL 10.33 Increased By ▲ 0.48 (4.87%)
HBL 114.80 Decreased By ▼ -0.20 (-0.17%)
HUBC 111.86 Decreased By ▼ -0.14 (-0.13%)
HUMNL 6.65 Increased By ▲ 0.10 (1.53%)
KEL 4.79 Increased By ▲ 0.26 (5.74%)
KOSM 4.68 Increased By ▲ 0.16 (3.54%)
MLCF 38.89 Increased By ▲ 0.99 (2.61%)
OGDC 123.17 Increased By ▲ 2.62 (2.17%)
PAEL 21.92 Increased By ▲ 0.17 (0.78%)
PIAA 10.95 Increased By ▲ 0.05 (0.46%)
PIBTL 5.99 Decreased By ▼ -0.03 (-0.5%)
PPL 108.34 Increased By ▲ 1.54 (1.44%)
PRL 28.12 Increased By ▲ 0.77 (2.82%)
PTC 11.07 Increased By ▲ 0.52 (4.93%)
SEARL 51.55 Decreased By ▼ -0.45 (-0.87%)
SNGP 67.81 Increased By ▲ 0.91 (1.36%)
SSGC 11.56 Increased By ▲ 0.03 (0.26%)
TELE 8.07 Increased By ▲ 1.02 (14.47%)
TPLP 11.72 Increased By ▲ 0.16 (1.38%)
TRG 75.71 Decreased By ▼ -5.04 (-6.24%)
UNITY 22.75 Increased By ▲ 1.60 (7.57%)
WTL 1.28 Increased By ▲ 0.01 (0.79%)
BR100 6,545 Increased By 61.1 (0.94%)
BR30 22,298 Increased By 199.8 (0.9%)
KSE100 63,703 Increased By 484.4 (0.77%)
KSE30 21,508 Increased By 202.1 (0.95%)

NEW DELHI: Tata Motors will invest over $2 billion in its electric vehicle (EV) business over the next five years, a company executive said on Tuesday, after the Indian automaker announced it had raised funds from private equity firm TPG.

Earlier, Tata Motors said TPG's Rise Climate Fund and Abu Dhabi state holding company ADQ had agreed to invest about $1 billion to expand the company's EV business for which it would form a separate unit.

TPG and ADQ would hold between 11% and 15% in the new EV entity, valuing it at about $9.1 billion, Tata said. The unit will invest in new models, dedicated battery electric vehicle platforms, charging infrastructure and battery technologies.

"The aim is to lead the EV charge in the market," Shailesh Chandra, head of Tata Motors' passenger vehicles business told reporters, adding that to achieve its goals the company will work with investors who are focussed on a "carbon free world."

This is the first major fundraising by an Indian carmaker to push clean mobility when global automakers such as General Motors, Volkswagen and Toyota Motor are spending tens of billions of dollars to speed up EV adoption and also counter China's dominance of the sector.

Indian shares end higher on auto boost, vaccine cheer; inflation in focus

It also comes as the world's biggest electric carmaker Tesla Inc is preparing to launch its cars in India and has been lobbying the government to lower import duties on EVs.

Investments in EVs globally by 2025 could total $330 billion, consulting firm AlixPartners said in June, adding that it expects EV sales to increase to about a quarter of total global vehicle sales by 2030 from about 2% today.

GM to open battery cell development center in push to cut EV costs

India intends for EVs to make up 30% of total car sales by 2030 from less than 1% at present. To achieve its target the government has launched several incentive schemes including one for setting up local battery manufacturing.

Tata Motors dominates EV sales in India with its electric SUV Nexon and Tigor compact EV, and plans to launch 10 new electric models by 2025. But several carmakers including Maruti Suzuki, India's largest, have yet to enter the space.

Tata, which owns the luxury brand Jaguar Land Rover, also has the advantage of working with other group companies such as Tata Power, Tata Chemicals and Tata Autocomp to create an ecosystem for EVs, Chandra said.

JP Morgan and Morgan Stanley advised Tata Motors while Bank of America advised TPG.

Comments

Comments are closed.