Tata Motors to invest $2 billion in EVs after fundraise from TPG

New Delhi: Tata Motors NSE -1.12 % will invest over $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 private equity firm TPG.

Earlier, Tata Motors said TPG’s Rise Climate Fund and Abu Dhabi state holding company ADQ had agreed to invest about $1 billion to expand the company’s EV business for which it would form a separate unit.

TPG and ADQ would hold between 11% and 15% in the new EV entity, valuing it at about $9.1 billion, Tata said. The unit will invest in new models, dedicated battery electric vehicle platforms, charging infrastructure and battery technologies.