Tata Motors had recorded its highest-ever monthly and quarterly EV sales of 705 units and 1,711 units in March’21 and Q4 FY21, respectively
Tata Motors is exploring options to raise funds for its electric vehicle business. A report by Economic Times notes that the auto maker may be in talks with private investors and wealh funds in order to raise capital. The move has come at a time when the auto company is looking to build and introduce affordable EV cars in India.
The board of Tata Motors, in March 2020, had approved a plan to make a separate subsidiary for its entire passenger vehicle business which includes its EV business as well. Several reports had indicated that Tata Motors was in talks with China-based Geely. The company, as per there reports was trying to rope in Geely as a strategic investor in the business. It is to be noted here that Tata Motor’ subsidiary Jaguar Land Rover (JLR) already has a tie-up with Chery Automobile of China.
“Tata Motors is looking to tie up with strategic investors as it plans to reduce its debts and bring it close to zero levels in the next 2-3 years,” Economic Times quoted Mitul Shah, head of research, Reliance Securities.
The company had received several complaints regarding its Nexon EV model from a lot of consumers in the India market. Following negative feedback from the people who had bought Tata Nexon EV, the Delhi government, had announced that no incentives will be offered on the same car model. However, the Delhi High Court has stayed the Arvind Kejriwal government’s decision to remove electric version of the Tata Nexon car from the list of electric cars that can be covered under the subsidy.
Tata Motors design head Pratap Bose had resigned from his duties with Tata recently. Nexon EV was the best-selling electric vehicle in India during the financial year 2020-21. Tata Motors had recorded its highest-ever monthly and quarterly EV sales of 705 units and 1,711 units in March’21 and Q4 FY21, respectively.
The India Electric Vehicle Market, as per a report by Mordor Intelligence, was valued at USD 5 billion in 2020 and is expected to reach USD 47 billion by 2026 registering a CAGR of above 44 per cent during the forecast period (2021 – 2026).