Tata Passenger Electric Mobility gets Rs 3750 Cr investment from TPG Rise

The country’s second-largest auto manufacturer Tata Motors recently announced that it has received an investment of Rs 3,750 crore from private equity fund TPG Rise for its EV subsidiary Tata Motors Electric Mobility Ltd. TPG has subscribed to 3.75 crore compulsorily convertible preference shares of the face value of Rs 1,000 each in the subsidiary on March 30 for an aggregate consideration of Rs 3,750 crore, the company said in an exchange filing.

The Rs 3,750 crore investment is the first tranche of the Rs 7,500 crore investment from the private equity firm. In October of last year, the manufacturer of the best selling subcompact SUV Nexon stated that investors, including ADQ, would infuse cash into TML EV Co. through compulsory convertible instruments for an 11-15 percent interest in the newly created entity, giving it an equity worth of up to $9.1 billion.

Last year Tata Motors incorporated the Tata Passenger Electric Mobility Limited (TPEML), a wholly-owned subsidiary for the manufacturing, designing, and developing of all kinds of services related to EVs, e-mobility and hybrid EVs for people movement. The company during its announcement revealed that TPEML has been incorporated with a capital of Rs 700 crore.

Earlier in October last year, Tata Motors announced that it will invest more than $2 billion in its electric vehicle (EV) business over the next five years. TML made the announcement following a billion-dollar investment from private equity firm TPG and its co-investor, Abu Dhabi state holding company ADQ. This investment was made in order for the company’s EV business to be expanded as a distinct subsidiary.

Tata Motors is currently the largest electric car producer and seller in the country, having sold over 10,000 EVs since the launch of its first electric model, the Tigor EV, in 2019. As it stands, the firm has around 700 charging stations spread over 120 cities, but the company is working on plans to grow this number in the near future. While the business has also stated that in order to develop in the EV area, it would enlist the help of its sister companies like Tata Power, Tata Chemicals, and Tata Consultancy Services (TCS) for end-to-end solutions.

Tata Passenger Electric Mobility gets Rs 3750 Cr investment from TPG Rise

Tata Group is also constructing a lithium-ion battery facility in Gujarat to increase its independence. This project would be completed with the aid of a Rs 4,000 crore budget put aside by the firm. The factory would cover an area of 126 acres and will be located in the Ahmedabad district’s Dholera village. Tata is also in the process of building an energy-storage plant for mobility and stationary charging.

Tata Motors is now the only carmaker in the country with an official brand dedicated to EVs. While Tata’s current EV range comprises the subcompact car Tigor EV and the subcompact SUV Nexon EV, which are also the cheapest EVs on the market.