Tata Motors Forays In To Passenger Electric Vehicle Business With A New Subsidiary, Raises $1 billion From TPG Rise Climate

Indian auto major Tata Motors today announced (Oct 12) that it has raised $1billion (Rs 7500 crores) from U.S investment firm TPG Rise Climate for its soon-to-be incorporated passenger electric vehicle subsidiary at an valuation of $9.1 billion.

Tata Motors said that its new passenger EV subsidiary TML EV Co will leverage all existing investments and capabilities of Tata Motors Ltd and will channelise the future investments into electric vehicles, dedicated BEV platforms, advanced automotive technologies and catalyse investments in charging infrastructure and battery technologies.

Over the next five years, this company will create a portfolio of 10 EVs and in association with Tata Power Ltd, catalyse the creation of a widespread charging infrastructure to facilitate rapid EV adoption in India.

TPG Rise Climate along with co-investor ADG shall invest $1billion (Rs 7,500 Cr) in compulsory convertible instruments to secure between 11 % to 15 % stake in this company translating to an equity valuation of up to $9.1 billion.

TPG Rise Climate is the dedicated climate investing strategy of TPG’s global impact investing platform TPG Rise.

Based out of Abu Dhabi in 2018, ADQ is one of the region’s largest holding companies with direct and indirect investments in more than 90 companies locally and internationally. Its portfolio of major enterprises span key sectors across Abu Dhabi's economy, including food and agriculture, aviation, financial services, healthcare, industries, logistics, media, real estate, tourism and hospitality, transport and utilities.

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% electric vehicles penetration rate by 2030.”