Back in the funding game, Tata Motors asks for $600 million in funding from global investors to set the electronic vehicle business in motion. Already marking its presence in the EV segment, it is not the first time that Tata has asked for funding. The auto giant has already raised $1 billion from TPG’s Rise Climate Fund and Abu Dhabi state-holding company ADQ in the past year for the same motive.
Reports have also stated that the auto giant has reached out to several marquee investors, sovereign wealth funds from the Middle East, Korea and Singapore, impact funds, as well as Canadian pension funds to set the ball rolling in the EV market. This exorbitant round of funding is also a part of the major propaganda of increasing the proportion of electric vehicles in the portfolio to 25% by 2025.
Not only is the company working on external funding, but it is also planning on working with internal funding options as well as seeks to become the upper hand in this sector by investing majorly in development and focusing on product innovation. In the recently held Auto Expo 2023, Tata Motors presented an amazing lineup of products like Harrier E.V, Avinya, Curvy and a few other striking products to showcase its innovations.
This funding of $600 Million might help in raising the valuation of Tata Passenger Electrical Mobility Ltd, a subsidiary formed in 2021 from $9.1 billion to $10.9 billion. “The EV transition in India is coming through very strong and very fast, much faster than what people are expecting it to be” says the CFO of Tata Motors Group. With 50,00 electric vehicles sold in December 2022 itself, the group plans to launch 10 new EV models by the month of March 2026 to make a strong mark in the new and fastest-growing segment of Electric Vehicles.