Tata Motors Seeks To Raise $1 Billion: India’s largest automaker Tata Motors’ plan to operate its Electric Vehicle(EV) segment distinctly is picking up pace as the company is in talks to raise funds for the said business.
Tata Sons Chairman N Chandrashekharan had announced the plans relating to creating an ecosystem for EV business in the coming years in the AGM held in June, for which the stakeholders had given approval In March.
Funds amounting to nearly $1bn are being raised at a valuation of $7bn and early-stage talks are being held with global private equity firms.
The EV segment will be incorporated as a subsidiary of Tata Motors and the company aims to garner nearly one-fourth of its sales from this segment in the next 3-5 years, which is currently hovering around 2%.
As a part of this goal, the company has announced plans to introduce a total of 10 EV models by 2025. Also, the current passenger vehicle division that is being valued at around 9500cr will be eventually made a part of this exclusive EV segment.
Tata Motors is also working with Tata Power in the development of about 1000 charging stations across 25 cities, as a start. Simultaneously, works on hydrogen-fuelled vehicles are underway which are in their trial stages, with Indian Oil being its first client.
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Tata Motors will have 10 new BEV (battery electric cars) by 2025, and as a group, they will spend proactively to set up charging infrastructure across the country, Chandrasekaran stated in the company’s 2020-21 annual report.
He stated that Tata Sons is considering establishing an automotive software and engineering vertical within the Tata group to enable it to dominate in the field of connected and autonomous automobiles.
In India, EV penetration in their portfolio has more than quadrupled to 2% this year, and they expect it to grow dramatically in the future years as stated by Mr. Chandrasekaran. Tata Motors will be at the forefront of this transformation in the Indian market. This may be one of the reasons Tata Motors seeks to raise $1 Billion.
