Tata Motors has begun discussions with sovereign wealth funds and private equity investors to sell a significant minority stake in the company's electric vehicle division, Economic Times newspaper reported on Thursday, citing sources.
Tata Motors did not immediately respond to Reuters' request for comment.
With total sales of 50,000 electric cars to date, India's Tata Motors dominates the country's EV market and has outlined plans to launch 10 electric models by March 2026. The company expects electric models to make up a quarter of its total sales by 2025 from around 8 percent now.
Tata group is also considering setting up plants in India and Europe to produce battery cells for electric vehicles (EV), the chief financial officer of its auto unit told Reuters in an interview last month.
Tata is evaluating two production bases, the other one is in Europe, so that the battery cell needs of its luxury car unit Jaguar Land Rover - which has a manufacturing facility there - can also be met.
India's car market, set to become the third-largest in the world, is tiny compared to its population, with electric models making up just 1 percent of total car sales of about 38 lakh last year, but the government wants to grow this to 30 percent by 2030.
Tata expects its EV business to be cash flow positive by 2025 while the company is also focused on boosting profitability of the business, Balaji said.
Tata's new models will include a wider driving range and higher price points as Tata Motors looks to cement its lead at a time when rivals such as Mahindra & Mahindra, Warren Buffet-backed BYD and SAIC Motor's MG Motors have lined up EV launches.
from Gadgets 360 https://ift.tt/tFGuEKy
No comments:
Post a Comment