Tata Motors has started talks with sovereign wealth funds and private equity investors to raise up to $1 billion via a stake sale in its electric-vehicle business. The company, which owns Jaguar Land Rover, plans to sell a significant minority stake and is eyeing a valuation of about $10.5 billion. Potential 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 funds and investors have not yet responded to Reuters’ request for comment, though KKR declined to comment and Temasek said it does not comment on “market speculation and rumors”.
Tata plans to use the bulk of the proceeds to retire a part of its outstanding debt and infuse a small portion as primary equity in the EV business. Earlier this week, Uber said it plans to introduce 25,000 EVs over three years in India and will buy vehicles from Tata, India’s biggest EV maker. Tata has outlined plans to expand its EV portfolio with new models and higher price points.
India’s car market is tiny compared to its population, with EVs making up just 1 percent of total car sales of about 3 million a year. The Indian government wants to grow this to 30 percent by 2030. 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.
Tata Motors is currently in talks with sovereign wealth funds and private equity investors to raise up to $1 billion via a stake sale in its electric-vehicle business. The company, which owns Jaguar Land Rover, plans to sell a significant minority stake and is aiming for a valuation of approximately $10.5 billion. Potential investors include the Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company, the Public Investment Fund of Saudi Arabia, Singapore’s Temasek Holdings, and KKR and General Atlantic.
The funds and investors have not yet responded to Reuters’ request for comment, though KKR declined to comment and Temasek said it does not comment on “market speculation and rumors”. Tata plans to use the bulk of the proceeds to pay down a portion of its outstanding debt and inject a small portion as primary equity in the EV business.
Earlier this week, Uber announced its intention to introduce 25,000 EVs over three years in India and will buy vehicles from Tata, India’s biggest EV maker. Tata has outlined plans to expand its EV portfolio with new models and higher price points.
India’s car market is relatively small compared to its population, with EVs making up just 1 percent of total car sales of about 3 million a year. The Indian government has set a goal to increase this to 30 percent by 2030. 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.
The electric vehicle market in India is growing rapidly, and Tata Motors is in an excellent position to capitalize on this trend. The company’s plans to raise up to $1 billion via a stake sale in its electric-vehicle business will help it to further expand its EV portfolio, as well as retire a portion of its outstanding debt and inject primary equity into the EV business. The potential investors include the Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company, the Public Investment Fund of Saudi Arabia, Singapore’s Temasek Holdings, and KKR and General Atlantic.
Tata Motors is well-positioned to take advantage of the growing electric vehicle market in India. The company’s plans to raise up to $1 billion via a stake sale in its electric-vehicle business will help it to further expand its EV portfolio, as well as retire a portion of its outstanding debt and inject primary equity into the EV business. The potential investors include the Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company, the Public Investment Fund of Saudi Arabia, Singapore’s Temasek Holdings, and KKR and General Atlantic.
The electric vehicle market in India is growing rapidly, and Tata Motors is in an excellent position to capitalize on this trend. The company has already raised $1 billion in 2021 from TPG and Abu Dhabi state holding company ADQ for its EV unit at a $9 billion valuation, and has pledged to invest more than $2 billion in its EV business over five years. The current talks with sovereign wealth funds and private equity investors to raise up to $1 billion via a stake sale in its electric-vehicle business will help Tata Motors to further expand its EV portfolio, as well as retire a portion of its outstanding debt and inject primary equity into the EV business.
The potential investors include the Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company, the Public Investment Fund of Saudi Arabia, Singapore’s Temasek Holdings, and KKR and General Atlantic. This move will further strengthen Tata Motors’ position in the electric vehicle market in India, and will help it to capitalize on the growing demand for EVs in the country.
The Indian government has set a goal to increase the share of EVs in total car sales from 1 percent to 30 percent by 2030. This move will go a long way in helping the government to achieve its ambitious target. In addition, the company’s plans to raise up to $1 billion via a stake sale in its electric-vehicle business will help it to further expand its EV portfolio, as well as retire a portion of its outstanding debt and inject primary equity into the EV business.
The funds and investors have not yet responded to Reuters’ request for comment, though KKR declined to comment and Temasek said it does not comment on “market speculation and rumors”. However, it is clear that Tata Motors is well-positioned to take advantage of the growing electric vehicle market in India, and the potential investors are likely to benefit from the company’s plans to raise up to $1 billion via a stake sale in its electric-vehicle business.
The electric vehicle market in India is growing rapidly and Tata Motors is in an excellent position to capitalize on this trend. The company has already raised $1 billion in 2021 from TPG and Abu Dhabi state holding company ADQ for its EV unit at a $9 billion valuation, and has pledged to invest more than $2 billion in its EV business over five years. The current talks with sovereign wealth funds and private equity investors to raise up to $1 billion via a stake sale in its electric-vehicle business will help Tata Motors to further expand its EV portfolio, as well as retire a portion of its outstanding debt and inject primary equity into the EV business.
The potential investors include the Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company, the Public Investment Fund of Saudi Arabia, Singapore’s Temasek Holdings, and KKR and General Atlantic. This move will further strengthen Tata Motors’ position in the electric vehicle market in India, and will help it to capitalize on the growing demand for EVs in the country. The Indian government has set a goal to increase the share of EVs in total car sales from 1 percent to 30 percent by 2030. This move will go a long way in helping the government to achieve its ambitious target.
In addition, the company’s plans to raise up to $1 billion via a stake sale in its electric-vehicle business will help it to further expand its EV portfolio, as well as retire a portion of its outstanding debt and inject primary equity into the EV business. This will help Tata Motors to become a major player in the electric vehicle market in India, and will help to drive the growth of the EV industry in the country.
Overall, Tata Motors is in an excellent position to capitalize on the growing electric vehicle market in India. The company’s plans to raise up to $1 billion via a stake sale in its electric-vehicle business will help it to further expand its EV portfolio, as well as retire a portion of its outstanding debt and inject primary equity into the EV business. The potential investors include the Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company, the Public Investment Fund of Saudi Arabia, Singapore’s Temasek Holdings, and KKR and General Atlantic. This move will further strengthen Tata Motors’ position in the electric vehicle market in India, and will help it to capitalize on the growing demand for EVs in the country.
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