How Tata will thrill against Tesla
The Indian group Tata has announced that it has completed a capital raising that has reached two billion, a sum that will be invested in the development of electric cars. In the meantime, it must defend its dominant position in India, with Tesla preparing to debut
Two billion dollars, this is the amount that Tata intends to invest in the development of electric vehicles for the next five years. The announcement comes from official sources of the Indian giant, which has finished raising fresh capital through the private equity firm TPG. An operation that adds to the investment of 1 billion dollars agreed by TPG's Rise Climate Fund and the Abu Dhabi state holding ADQ. Operation that will create a dedicated business unit with the intention of investing in new zero-emission models, including dedicated platforms, charging infrastructures and batteries.
To clarify the strategy of the group thought Shailesh Chandra, head of the passenger vehicle division of Tata Motors: "The goal is to lead the charge of electric vehicles in the market," he told reporters, adding that in order to achieve his objectives the company will work with investors focused on a “carbon-free world”.
TATA STOCKS SPLIT UP 20%
The spread of the news concerning the new capital raised caused Tata's shares to skyrocket, which in the morning of Wednesday 13th recorded a surge of 20%. This is the largest increase in value recorded by the Indian group since 2017. A significant event, because it is the first major fundraising by an Indian car manufacturer to promote electric mobility.
INDIA: 30% ELECTRIC CARS TARGET BY 2030
A trend in line with that of the entire automotive sector, with the world's leading groups having already invested tens of billions to accelerate the development of battery-powered vehicles and at the same time counter the dominance that China has established. However, Tata, which boasts supremacy in the domestic market, must watch its back: Tesla has already taken action by putting pressure on the Indian government in order to remove customs duties on imports in view of the launch of its models precisely where Tata is strongest.
At the moment, electric cars represent less than 1% of the total Indian market, which in 2018 had reached 4.4 million new registrations and which – if the coronavirus pandemic had not broken out – in 2020 would have exceeded the threshold of five millions. The Indian government intends to increase the share of registrations of electric vehicles to 30% by 2030 and to achieve the goal it has launched an incentive plan that includes, among other things, the creation of a national production of batteries.
BY 2025 INVESTMENTS IN EVS OF 330 BILLION
It is now the race to electric, a challenge that is driving up investments by car manufacturers. The consultancy firm AlixPartners has estimated the volume of capital that will be allocated to the development of battery vehicles by 2025 at 330 billion dollars. He also added that he expects an increase in EV sales by 2030, a threshold by which it should go from the current 2% global to about 25%.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/tata-tesla/ on Fri, 15 Oct 2021 05:35:32 +0000.