Tata Motors has announced the creation of a new electric vehicle subsidiary in the country tentatively named EVCo. With this, the homegrown maker has also entered into an agreement with TPG Rise Climate (a dedicated climate investing firm) whereby the TPG and its co-investor ADQ will invest Rs 7,500 crore in Tata's newly created EV sub-brand to secure its 11-15 percent stake, translating to an equity valuation of up to 9.1 billion US dollars.
The new EV subsidiary will take advantage of all existing investments and capabilities of Tata Motors Ltd and will channelize the future investments into the development of new electric vehicles, dedicated BEV platforms, advanced automotive technologies and catalyse investments in charging infrastructure and battery technologies. It has plans to have a total of 10 pure electric vehicles (EVs) in its portfolio by the next five years. In association with Tata Power Ltd, the EV firm will also expand the brand's charging infrastructure to facilitate fast EV adoption in the country.
The first round of capital infusion is expected to be completed by March 2022, and the entire fund will be infused by the end of 2022.
Tata Motors will initially amplify its existing ALFA and OMEGA EV-ready platforms/architectures so that they can accommodate more battery packs. Besides, the brand will also launch CNG vehicles soon. As per the reports, the Tigor, Tiago, and Nexon will be converted to CNG in the first phase.
Commenting on the investment raising, N Chandrasekaran, the Chairman of Tata Motors Ltd said –
I am delighted to have TPG Rise Climate join us in our journey to create a market-shaping electric passenger mobility business in India. We will continue to proactively invest in exciting products that delight customers while meticulously creating a synergistic ecosystem. We are excited and committed to play a leading role in the Government’s vision to have a 30% electric vehicles penetration rate by 2030.
