Tata Motors likely to raise $1 billion to bolster EV business: Report

Tata Motors is reportedly planning to raise $1 billion to strengthen its electric vehicle business in the country. According to a report by Reuters, citing Economic Times, the automaker has begun to talk with sovereign wealth funds and private equity investors to raise funds via stake sale.

The funds and investors include the UAE-based Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company, the Saudi Arabia-headquartered Public Investment Fund, Singapore's Temasek Holdings, and KKR and General Atlantic.

The daily claimed that Tata Motors might sell a significant minority stake, eyeing a valuation of about $10.5 billion.

Mint couldn't independently verify the report.

In 2021, Tata Motors raised $1 billion from TPG and Abu Dhabi state holding company ADQ for its EV unit at a $9 billion valuation, pledging to invest more than $2 billion in its EV business over five years.

This week, the Mumbai-based auto major signed an MoU with ridesharing app Uber to bring 25,000 XPRES-T EVs into their premium category service.

Aligned towards its goal of a clean and green environment, Tata Motors will be aiding Uber in electrifying its services across Delhi-National Capital Region, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, and Ahmedabad. The company will begin the deliveries of the cars to Uber fleet partners in a phased manner, starting this month.

Tata XPRES-T EV, a budget electric sedan car, was launched in 2021 in India.

Tata Motors said it is leading the e-mobility wave in India with over 50,000 Tata EVs rolled out from the plant to date in the personal and fleet segment.

In July 2021, Tata Motors launched the 'XPRES' brand exclusively for fleet customers, and the XPRES-T EV is the first vehicle under this brand. The new XPRES-T electric sedan comes with 2 range options -- 315 km and 277 km, according to Tata Motors.

The shares of Tata Motors were up 1.40 points at 0.34% in the initial trade (at 10.10 am) on Thursday.