TVS could use the proceeds of the proposed fundraising to create new electric vehicle facilities and battery manufacturing facilities
Automaker TVS Motor Co. Ltd is riding high on its plans to grow its EV business as it engages in advanced talks to raise Rs 4,000-5,000 crore from private equity firms, a report suggests.
“Around $500-650 million could be raised by TVS Motor, which could be used for organic and brownfield expansion in the EV space. TVS wants to increase the share of revenues from its EV business, capitalizing on the increasing demand for electric vehicles globally. EV is clearly the future of mobility, and TVS aspires to have a leadership position in this space,” Livemint cited one sources saying.
TVS could use the proceeds of the proposed fundraising to create new electric vehicle facilities and battery manufacturing facilities, which is somewhat similar to the structure adopted by the Tata group, which created a new renewables company as a step-down subsidiary of Tata Power to provide in-house lithium battery supplies and associated services for electric vehicles while keeping costs under stricter control.
TVS Motors is doubling down on electric vehicles as India sharpens its focus on reducing vehicular pollution in cities and cutting dependence on fossil fuels amid surging fuel prices.
TVS Motor invested in electric two-wheeler maker Ultraviolette Automotive in December.
TVS’ latest capital raising plan is also aimed at expanding its partnership with BMW Motorrad for the joint development of new platforms and future technologies, including EVs.