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Tata Motors-Tpg Agreement Validates EV Opportunity in India;  Awesome launch pipeline: experts


Tata Motors will invest more than $ 2 billion in its electric vehicle (EV) business over the next five years, a company executive said on Tuesday after the Indian automaker announced it had raised funds from of the private equity firm TPG. The stock has been overdrive in recent trading sessions, rising 45% in the past five.

This is the first major fundraiser by an Indian automaker to promote clean mobility as global automakers such as General Motors, Volkswagen and Toyota Motor spend tens of billions of dollars to accelerate adoption of electric vehicles and counter the Chinese domination of the sector.

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Speaking on the agreement, Rohan Rao, KPMG’s partner in India for electric vehicles, said: “KPMG cannot comment specifically on the agreement, it can only give an industry perspective in accordance with compliance. .. “

Rishabh Jain, program manager at the Council on Energy, Environment and Water-Center for Energy Finance, believes Tata Motors’ growth trajectory looks healthy in the electric vehicle segment.

“The business is now valued at $ 9.1 billion after the current investment. Tata Motors currently offers three models for regular passengers and one for the fleet. They are offering 10 models over the next five years and it’s very ambitious and it’s a really good boost for consumers in the four-wheel space, ”he said.

These new models should be launched gradually.

“By the end of 2026, we’ll see maybe 13 or 15 models from Tata Motors. There’s an interesting point in how this deal is structured. This new entity will develop the technology and catalyze investments in charging infrastructure. and batteries. However, Tata Motors will be responsible for the manufacture and even the sale of these vehicles as well as the after-sales service. So it’s a very interesting business where this new entity is light, and it’s basically a technology company, so this will really boost sales in the four-wheel market segment, ”he added.

Karthik Reddy, vice president of the Indian Private Equity & Venture Capital Association, said that there are huge bets on mass adoption of at least two wheels.

“There is a small revolution of the three-wheeler that people don’t see on the ground yet, but I think it’s going to become the mode of mass transportation. Infra, in my humble opinion, is more likely to happen. ‘First drive on a large scale in commercial or people transport – be it people or goods but on a commercial basis in big cities first. I have the impression in a limited way, to l Right now, four wheels look a bit more like a luxury, because building this kind of mass infrastructure will take 3-4-5 years. ” he said.

For the full interview, watch the accompanying video …

(Edited by : Abhishek Jha)

First publication: STI