Tata Motors Limited, an Indian multinational automotive manufacturing company, is the world’s fifth largest truck manufacturer and fourth largest bus manufacturer. The company generates passenger cars, trucks, vans, luxury cars, construction equipment and what not!

The company was formerly known as Tata Engineering and Locomotive Company (TELCO) and its subsidiaries include that of Tata Daewoo, Jaguar Land Rover, Tata Hitachi Construction Machinery, Tata Technologies and Tata Hispano.

The company is looking forward towards its objective to provide the “best vehicles and experiences” that enthrall their customers across the world.

The company’s manufacturing stations are situated in Jamshedpur, Pune, Lucknow, Patnagar and in many other cities.

To extend its international footprint, the company’s commercial and passenger vehicles have already reached countries like Europe, South Asia, Africa, the Middle East, South America etc.

The company has acquired five organizations, among which the most recent one was Tata Daewoo Commercial Vehicle Co Ltd.

The Binding Agreement

Recently, Tata Motors Ltd (TML) and TPG Rise Climate have ventured into a contract. On the other hand, TPG Rise Climate and its co-investor, ADG, are going to make an investment of ₹7,500 crore, which is $1 billion in one of the subsidiaries of Tata Motors which would soon be consolidated. This new subsidiary would be focused on electric vehicles (EVs).

The company will make best use of all existing investments and potentialities of Tata Motors Ltd. It will transform the future investments into electric vehicles, BEV platforms, battery technologies, and at the same time, it would focus on advanced mechanisms of automotive technologies.

Chairman N. Chandrasekharan expressed his excitement over the investment in “exciting products” that may delight customers on one hand and a precise creation of a “synergistic ecosystem” on another hand.

He added the company is driving towards the Government’s ambition to have “30% electric vehicles penetration rate by 2030.”

TPG Rise Climate and ADQ will be allocated convertible equipment to secure between a range starting from 11% to 15% stake in the company, amounting to an equity summation of up to $9.1 bn.

The Managing Partner of TPG Rise Climate, Jim Coulter stated the investment would lay its attention on decarbonised transport and also, it would further the creation of “TPG’s long history in India.”

Mr. Balaji stated that TMG will be investing ₹15,000 crore in the next five years in the EVco, but the timing of the upcoming funding round has not been decided yet.

It is predicted that the next round of capital infusion will be finished off by the year 2022 (March, preferably) and the funds in total would be infused within the 3rd quarter of FY22.

In the coming five years, the company is going to prepare a portfolio of 10EVs. Together with Tata Power Ltd., as BusinessToday.in suggests, would accelerate the making of “widespread charging infrastructure” to smoothen drastic transformation through “EV adoption in India.”