Tata Group plans to take its electric vehicle division public to capitalize on growing demand. Tata Passenger Electric Mobility (TPEM), a key player in India’s EV sector, intends an IPO valued at $1-2 billion within 18 months.
As Tata Motor’s EV subsidiary, TPEM manufactures popular models like Nexon EV and Tiago EV. With over 80% electric car market share led by Tata, TPEM leads domestic EV production. The planned listing aligns with Tata’s aim to benefit from investments versus sole fundraising focus.
Sources say the IPO would unlock value from Tata’s commitment to EVs. Last January, TPEM secured $1 billion from TPG as part of a $2 billion investment by 2026. Reports peg the current TPEM worth at $9.5-10 billion.
Buoyed by rising EV adoption, TPEM delivered over 53,000 electric cars in the past fiscal year through Tata Motor sales. Projections anticipate 100,000 EV sales in fiscal 2025. Tata Motor saw 69% year-over-year growth in January EV deliveries, including exports.
Tata targets a wider EV portfolio with 10 new electric models over the next three to four years. Recently, Tata lowered Nexon EV and Tiago EV prices following competitors to improve attractiveness, offering up to Rs. 1.2 lakh and Rs. 70,000 savings respectively.
