Tata Motors has announced that the brand will be creating a portfolio of 10 electric vehicles in the next five years. The company will create the range of EVs in association with Tata Power Ltd, creating a widespread charging infrastructure. This will also help the brand facilitate EV adoption at a higher pace in the Indian market. The brand also revealed that it would be leveraging its existing investments and capabilities of Tata Motors Ltd. This will help the company channel future investments into electric vehicles. The investments will also help Tata develop dedicated BEV platforms and advanced automotive technologies. The investments will not only boost the development of the charging infrastructure but also advanced battery technologies.
Tata Motors Limited has entered into a binding agreement with TPG Rise Climate along with its co-investor ADQ. The brand announced that the TPG Rise Climate and ADQ would invest in a newly incorporated subsidiary of Tata Motors. TPG Rise Climate and its co-investors will invest INR 7,500 crore (USD 1 Billion) in compulsory convertible instruments. This will help them secure an 11 % to 15 % stake in the company leading to an equity valuation of up to USD 9.5 billion. This will not only help Tata build a synergistic ecosystem for electric vehicles in India but also help achieve the Government’s vision of having a 30% electric vehicles penetration rate by 2030.
Expect the first round of capital infusion to be completed by March 2022. The brand announced that by the end of 2022, the companies would infuse the entire funding. Tata Motors Limited has employed Morgan Stanley and JP Morgan as the joint financial advisors. At the same time, BofA Securities India Ltd are representing TPG Rise Climate for this transaction. Furthermore, Tata also revealed that Khaitan & Co are legal advisors to Tata Motor Limited. At the same time, Shardul Amarchand Mangaldas & Co and Cleary Gottlieb are legal advisors to TPG Rise for the transaction.
Currently, Tata Retails the Tata Nexon EV and Tata Tigor EV in the passenger electric vehicle segment. The brand is likely to expand the EV portfolio with the Tata Altroz EV and the Tata Punch EV in the near future.
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