New investments flow to support Tata’s ambition of making EVs mainstream in India, says GlobalData

Following the news that Investment firm TPG Rise Climate along with its co-investor ADQ announced investment of INR7.5bn (US$1bn) in Tata Motors electric vehicle (EV) arm;

Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, offers his view:

“Tata Motors has been striving hard to make EVs mainstream in the Indian market with a slew of affordable EV products for private consumers and significant investments in the charging infra domain.

“The influx of US$1bn by TGP and ADQ will give a much-required boost to Tata’s EV ambition in India. Tata will have a new EV subsidiary, which was already on the cards. The investors will secure stakes between 11% to 15% in the company which is valued at US$9.1bn.

“Tata Motors aims to roll out 10 BEV models in its domestic portfolio by 2025. It also wants to explore opportunities in cell and battery manufacturing and the BEV platform for its future EVs, both in India and Europe. Furthermore, it has introduced a holistic e-mobility ecosystem ‘Tata uniEVerse’ to closely leverage the strengths and experience of other Tata Group companies to create a viable EV environment. For instance, Tata Motors has partnered with sister company Tata Power along with other energy companies such as HPCL to establish charging infrastructure for its EVs. The fresh investments, which will be infused by 2022, will act as a catalyser to these plans and help the company to be ahead of its planned timelines.

“Tata Motors has been reconquering its once lost legacy in the passenger vehicle segment. Apart from 70% market share in the Indian EV market where limited automakers compete presently, the company has been rapidly expanding its share and brand recognition in the ICE vehicles due to its understanding of the local market dynamics and right product placement. This clearly makes Tata the ‘best fit’ to bet on as far as vehicle electrification in India is concerned.

“With the deal, Tata may lead ahead of its schedule to manufacture EVs and support the government’s ambition of 30% EV share in new sales by 2030.”

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