Tata Motors, one of the world’s largest automobile companies, on Tuesday announced an investment of Rs 7,500 crore in its new electric vehicle subsidiary of private equity firm TPG. This investment will be done in a few rounds done over a period of 18 months.
Tata Motors has created a new unit TML EVCo for the electric vehicle segment.
The company said the first round of investment would be completed by March next year. TPG will get 11-15 per cent stake in the unit at a valuation of around $9.1 billion.
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N Chandrasekaran, Chairman, Tata Motors, said, “I am delighted to have TPG join us in our journey to grow the business of electric passenger mobility in the country. We will continue to invest in products that will appeal to our customers. We are committed to play a major role in the goal of increasing the share of electric vehicles to 30 per cent by the year.”
At the company’s Annual General Meeting (AGM) in July, Chandrasekaran had said that 25 per cent of the company’s passenger vehicle portfolio would be electric in the medium to long term. Right now this figure is 2 percent.
With the government’s emphasis on less polluting fuels, the electric vehicle business is growing. Mahindra & Mahindra announced in April that it would invest Rs 3,000 crore over the next three years to strengthen electric vehicles.
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