(Adds details, references on global EV investing)
NEW DELHI, Oct 12 (Businesshala) – Indian automaker Tata Motors has raised nearly $1 billion from private equity firm TPG’s Rise Climate Fund and Abu Dhabi state holding company ADQ to expand its electric vehicle business, the company said. said on Tuesday.
Tata Motors will form a separate EV unit in which TPG and ADQ will hold between 11 per cent and 15 per cent stake and the value of the new unit will be around $9.1 billion, the company said in a statement.
Tata Motors, owner of luxury car brand Jaguar Land Rover, said the fund will be used to invest in electric vehicles (EVs), dedicated battery electric vehicle platforms, charging infrastructure and battery technologies.
This is the first major fundraising by an Indian carmaker to promote clean mobility at a time when global automakers such as General Motors, Volkswagen and Toyota Motor are spending billions of dollars to accelerate EV adoption.
This comes even as US electric car maker Tesla Inc is preparing to launch its cars in India and is lobbying the government reut.rs/3hWd2Ok To reduce the import duty on EVs.
Investment in EVs could total $330 billion globally by 2025, consulting firm AlixPartners said in June, adding that it expects EV sales to grow from about a quarter of total global vehicle sales by 2030 to about 2% today .
Chinese automakers are leading the global EV push and automakers such as Li Auto Inc., Neo Inc. and Xping Inc. have raised billions of dollars through stock listings in the United States.
Tata Motors, which is the largest seller of EVs in India, had earlier said that it plans to launch 10 new EVs by 2025 as well as invest in setting up charging infrastructure across the country.
JP Morgan and Morgan Stanley advised Tata Motors while Bank of America advised TPG. ($1 = 75.4910 INR) (Reporting by Aditi Shah. Editing by Jane Merriman)