First major fundraising by an Indian carmaker to push clean mobility
India’s Tata Motors said it will invest over $2 billion in its electric vehicle business over the next five years, a company executive said on Tuesday, after the Indian automaker announced it had raised funds from private equity firm TPG, Reuters reports.
Earlier, Tata Motors said TPG’s Rise Climate Fund and Abu Dhabi state holding company ADQ had agreed to invest about $1 billion to expand the company’s EV business for which it would form a separate unit.
“The aim is to lead the EV charge in the market,” Shailesh Chandra, head of Tata Motors’ passenger vehicles business told reporters, saying the company will work with investors who are focused on a “carbon free world.”
This is the first major fundraising by an Indian carmaker to push clean mobility when global automakers such as General Motors, Volkswagen and Toyota Motor are spending tens of billions of dollars to speed up electric vehicle adoption and counter China’s growing role.
It also comes as the world’s biggest electric carmaker Tesla Inc is preparing to launch its cars in India and has been lobbying the government to lower import duties on
India intends for EVs to make up 30% of total car sales by 2030 for EVs, from less than 1% at present.
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