Tata Group is preparing to list its subsidiary, Tata Passenger Electric Mobility Ltd (TPEM), in an initial public offering (IPO) valued at $1–2 billion, with the goal of capitalizing on its investments in the electric vehicle (EV) industry. This action demonstrates the conglomerate’s dedication to profiting from the expanding EV market, per a BusinessLine report.
As a major participant in the Indian EV market and a Tata Motors subsidiary, TPEM is well-known for its Tiago.ev and Nexon.ev EV models. TPEM is the biggest EV manufacturer in the country, with Tata Motors holding a market share of more than 80% for electric cars.
The initial public offering (IPO), which is expected to happen in the next 12 to 18 months, is in line with Tata Group’s larger plan to profit from its investments rather than concentrating only on raising money. The goal of the IPO, according to people familiar with the situation and BusinessLine, is to maximize the value of Tata Group’s EV investments.
Notably, as part of its audacious plans to infuse $2 billion by 2026, TPEM secured a significant $1 billion funding round from US private equity major TPG in January 2023. According to reports, TPEM is currently valued between $9.5 and $10 billion.
Tata Motors has seen strong performance through TPEM, selling over 53,000 electric cars in FY24, amidst the growing traction in EV sales. Sales of EVs are expected to reach 100,000 in FY25, according to projections. With exports included, Tata Motors’ year-over-year (YoY) growth in electric vehicle (EV) sales was an astounding 69% in just the month of January.
Tata Motors wants to increase the number of electric vehicles in its lineup. Over the next three to four years, the company intends to launch ten new models. Additionally, the business recently revealed price reductions for its well-liked electric vehicle models, the Tiago and Nexon, in line with rivals like the MG Comet. With savings of up to Rs 1.2 lakh for Nexon.ev and up to Rs 70,000 for Tiago.ev, the updated prices are effective immediately, further enticing customers to choose Tata’s electric vehicle offerings.
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