Tata Motors' EV Plans Are Atmanirbhar On Batteries, Infrastructure: Company To BQ
Building an electric vehicle ecosystem will be a group effort, said the Tata Motors Ltd.'s management in an interview with BloombergQuint. From batteries to charging infrastructure, the Indian auto major intends to be self-reliant or group-reliant.
"We would not wait for a PPP model, because it can be slow at times," said Shailesh Chandra, president of the passenger vehicles business at Tata Motors, referring to public-private partnerships for infrastructure.
"It is about working with the Tata companies which have the domain expertise in this area, where they are convinced that this is a wave that they would like to ride upon," he said. "The members of the Tata Group are very bullish on this space. We are also open to any enabling support if needed, for example, helping Tata Power Ltd. with identifying the right places to put up chargers."
The key investor in the company's newly announced EV subsidiary, TML EVCo, has endorsed that strategy. TPG Rise Climate, along with ADQ, will not only invest a billion dollars for an 11-15% stake in the unit, but will also support group efforts with further funding, said Ankur Thadani, partner at TPG Growth and Rise Fund, in the interview.
"There is a group-wide commitment, and not just a Tata Motors commitment, and there is ample evidence that the group is working as one Tata," Thadani said. "For Tata Motors, we will make whatever investments we need to make to achieve the vision we have for the company."
Investors and analysts have welcomed Tata Motors' announcement to set up an EV subsidiary with external investment from these marquee investors. The company's shares on Tuesday rose to their highest since Feb. 14, 2017.
The Nexon EV launch and the acceleration took some time due to Covid-19, but the success helped Tata Motors realise the large opportunity in the EV business, said P Balaji, chief financial officer at Tata Motors.
"This EV story is an India story, and because there is a scarcity of the India EV story, it was an opportunity," Balaji said. "The purpose of this plan between TPG and Tata Motors was identical, and it showcases the trust between the two parties that a deal of this size was stitched together in eight weeks."
Watch the full interview with P Balaji, Shailesh Chandra and Ankur Thadani here.