TPG plans to invest $1 billion into Tata Motors' EV unit

Private equity firm TPG is reportedly in talks with the Tata Group to invest at least $1 billion in the electric vehicles (EV) venture of Tata Motors.

TPG's investment may even be raised to $1.5 billion and may value the Tata Motors' EV division at $8-9 billion, according to media reports. Moneycontrol could not independently verify the report.

"The final quantum of investment and the valuation is yet to be sealed," the reports quotes sources as saying and added that a formal announcement was expected later this month. Tata Group is also holding discussions with some of the sovereign wealth funds (SWFs) in West Asia such as Abu Dhabi Investment Authority and Saudi Arabia's PIF.

Tata Sons, Tata Motors and TPG declined to comment. Mails to ADIA, PIF and Calpers did not generate a response. Tata Motors is in the process of completing the subsidiarisation programme of its passenger vehicle (PV) business, paving the way for onboarding a partner.

The PV division, which looks into the development, manufacture, distribution and sale of cars, SUVs and vans, is being hived off into a separate entity allowing the company to sell its stake to a strategic partner.

With the plans of hiving off the passenger vehicle business and electrification of model range - both under its namesake brand and under Jaguar Land Rover - Tata Motors is undergoing its biggest shake-up ever.