Tata Motors on Tuesday announced that a private equity firm TPG Group and Abu Dhabi-based ADQ will invest Rs 7,500 crore in its electric vehicle arm, which will be incorporated recently.
The entire investment will be made in phases over a period of 18 months starting from the date of completion of the first installment.
The first installment of capital investment will be completed by March 2022 while the entire process will be completed by the end of 2022.
Tata will incorporate a separate electric mobility unit in which TPG and ADQ will get 11 per cent to 15 per cent stake at an equity valuation of $9.1 billion.
“I am delighted that TPG Rise Climate joins us in our journey to build a market-shaping electric passenger mobility business in India. We will continue to actively invest in exciting products that delight customers while building a synergistic ecosystem with joy. N Chandrasekaran, Chairman, Tata Motors said, “We are excited and committed to play a leading role in the government’s vision of a 30 percent electric vehicle penetration rate by 2030.
Apart from Tata Motors’ entry into the electric vehicle business, Mahindra & Mahindra had also announced that it would invest Rs 3,000 crore over the next three years to build an electric vehicle vertical.