# JLR parent Tata Motors surges nearly 20% on TPG fundraise, EV plans Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-10-13 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Tata Motors rises 20% after securing $2 billion for EV Meta Description: Shares of Tata Motors rose 20% after securing $1 billion investment for electric vehicles, aiming to launch 10 new models by 2025. URL: https://financedigest.com/jlr-parent-tata-motors-surges-nearly-20-on-tpg-fundraise-ev-planshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-10-13t043504z2lynxmpeh9c03prtroptp4india-autos-electric-hydrogen-1736837571284-compressed.jpg) BENGALURU (Reuters) – Shares of India’s Tata Motors rose nearly 20% on Wednesday, a day after the Jaguar and Land Rover owner raised funds from private equity firm TPG and said it would invest over $2 billion in its electric vehicle (EV) business over the next five years. Tata Motors said on Tuesday TPG’s Rise Climate Fund and Abu Dhabi state holding company ADQ had agreed to invest about $1 billion to expand the company’s EV business for which it would form a separate unit. The fundraising is the first major one by an Indian carmaker in the EV space when global automakers such as General Motors, Volkswagen and Toyota Motor are spending heavily to speed up EV adoption. The move to set up a separate EV subsidiary and get funding from leading private equity players like TPG would give [Tata Motors](https://www.financedigest.com/indias-tata-motors-jumps-to-a-7-month-high-on-strong-q4-jlr-sales.html "India’s Tata Motors jumps to a 7-month high on strong Q4 JLR sales") access to TPG’s network of world-class EV capabilities to further fine-tune its strategy, Ambit Capital analysts said in a note. India intends for EVs to make up 30% of total [car sales](https://www.financedigest.com/uk-new-car-sales-rise-17-in-march-best-ever-month-for-evs.html "UK new car sales rise 17% in March; best ever month for EVs") by 2030 from less than 1% at present to reduce its oil dependence and cut pollution. To achieve the target, the government has [launched several incentive schemes](https://www.financedigest.com/britain-launches-scheme-to-pay-homes-to-curb-electricity-use.html "Britain launches scheme to pay homes to curb electricity use") including one for setting up local battery manufacturing. [Large investments](https://www.financedigest.com/large-investment-success-for-basingstoke-cybersecurity-start-up.html "Large investment success for Basingstoke cybersecurity start-up"), more product options and favourable government policies will accelerate the pace of EV adoption in India, Emkay Global analysts said in a note. Tata Motors is India’s [top electric car](https://www.financedigest.com/top-expensive-car-brands.html "Top Expensive Car Brands") seller with sports utility vehicle Nexon and Tigor compact EV, and plans to launch 10 new electric models by 2025. But [several companies](https://www.financedigest.com/the-severe-impact-of-downtime-on-companies-bottom-lines.html "The severe impact of downtime on companies’ bottom lines"), including India’s top carmaker Maruti Suzuki, have yet to enter the space. Tata’s [move also comes at a time](https://www.financedigest.com/move-over-tina-its-time-for-tara.html "Move over TINA, it’s time for TARA") when Tesla Inc, the world’s biggest electric carmaker, is preparing to launch its cars in India. [Shares of Tata Motors have gained](https://www.financedigest.com/shares-in-french-tech-champion-ovhcloud-gain-6-in-paris-debut.html "Shares in French tech champion OVHcloud gain 6% in Paris debut") about 48% so far this month, hitting an over 4-1/2-year high on Wednesday. With a 168% year-to-date surge, the stock has outperformed the broader Nifty auto index, which has gained about 28%. (Reporting by Nallur Sethuraman in Bengaluru; Editing by Subhranshu Sahu) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---