Last month, Tata Motors announced it will raise $1 billion in its passenger electric vehicle (EV) business from TPG Rise Climate. “We estimate that TPG Capital’s $1 bn capital injection into Tata Motors’s electric vehicle subsidiary, EVCo, will fund half its EV spending in India (Baa3 stable) through March 2026,” Moody’s Investors Service said in a statement.
Tata Motors intends to use the funds, which it will receive in exchange for compulsorily convertible preference shares issued to TPG, to create a portfolio of EVs and dedicated battery electric vehicle (BEV) platforms. EVCo will also invest in battery technologies and charging infrastructure in association with Tata Power. Moody’s Investors Service noted the automaker has an early mover advantage in EVs in India, but faces challenges in scaling up.