Bombay, April 10
Tata Motors, India’s third-largest passenger vehicle maker, said it is ready to have partners in its two subsidiaries that make battery-electric vehicles and regular-engine cars and SUVs as it seeks to maintain its growth trajectory. using new technologies.
The Mumbai-based company, which recorded flat growth last year in the segments in which the two subsidiaries operate, wants to stay one step ahead as rivals prepare to make significant investments depending on the future market development.
When asked in an interview with Activity area If Tata Motors is looking for a partner in the electric vehicle company, Shailesh Chandra, Managing Director of the two Tata Motors subsidiaries, said: “We are open to (having a partnership in) PV (passenger vehicle) and EV (electric vehicle) both because both are disrupted by the same new technology.
The EV subsidiary, Tata Passenger Electric Mobility (TPEML), saw the financial participation of TPG Rise Climate and ADQ who agreed to pump Rs 7,500 crore in two tranches in exchange for a stake of between 11 and 15%. This transaction which was executed in October 2021, gave TPEML a valuation of $9.1 billion.
“TPG is a strategic partner with a lot of knowledge,” added Chandra. Tata Motors ended FY22 with a share of over 85% in the passenger electric vehicle category based on just two models, Nexon EV and Tigor EV.
The company is committed to having a total of 10 electric vehicle launches in five years, including those that will be based on an electric platform. Its existing offerings are essentially gasoline/diesel cars converted to battery electrics. The next phase of product offerings will see the company introduce electric vehicles with a petrol/diesel powertrain option. The company has planned an investment of Rs 15,000 over five years to execute these plans and meet its ambitions.
passenger vehicle company
In 2020, Tata Motors had announced plans to seek a partner for its PV business unit even before it spun off from the vertical into a separate company. The disruption caused by the Covid-19 pandemic and increased focus on the electric vehicle business has meant that plans to find a partner for the PV business have taken a back seat.
Chandra clarified that Tata Motors is not currently in dire straits when it comes to finding a partner and is “waiting for a good opportunity” to arise. The defeasance of the photovoltaic unit called Tata Motors Passenger Vehicle came into effect on January 1, 2022.
“We are still in no rush. We are able to bring the right technology and the products work well, but there are some areas where partners can become a force multiplier. When this kind of situation arises, we will actively seek a partner, but today nothing of this nature is visible. There are desperate times when you need a partner, but we are not in that situation. We are just waiting for a good opportunity to show up,” Chandra added.
Tata Motors and German Volkswagen Group engaged in a five-month discussion in 2017 to explore a product and technology tie-up. The deal, however, fell through after both companies realized that the areas of partnership envisioned might not produce the desired synergies as originally assessed.
April 10, 2022