Mumbai-headquartered Tata Motors Ltd., will raise close to $1 billion by selling a stake in its electric-vehicle business to a TPG fund and other investors.
TPG Rise Climate along with its co-investor Abu Dhabi’s ADQ, entered into a binding agreement to invest in a subsidiary of Tata Motors that will be newly incorporated. The investment will be made in compulsory convertible instruments to secure between 11 % to 15 % stake in this company translating to an equity valuation of up to $9.1 billion.
Tata Motors will invest over $2 billion in its EV business over the next five years, as part of its plan to expand its portfolio of 10 models.
Jim Coulter, managing partner TPG Rise Climate and founding partner of TPG commented, “We are excited to partner with Tata Motors on their mission to lead the electrification of passenger mobility in India. There is significant momentum around India’s EV movement, supported by the Government’s vision and policies, as well as growing consumer demand for greener solutions. The investment aligns with TPG Rise Climate’s focus on decarbonized transport and builds on TPG’s long history in India.”
N. Chandrasekaran, chairman Tata Motors Ltd said, “I am delighted to have TPG Rise Climate join us in our journey to create a market-shaping electric passenger mobility business in India. We are excited and committed to play a leading role in the Government’s vision to have 30% electric vehicles penetration rate by 2030.”
Last updated: December 26th, 2025
