TPG Invests in Tata Motors’ Electric Vehicle Business

Cleary Gottlieb represented TPG Rise Climate, the climate investing strategy of TPG’s global impact investing platform TPG Rise, in its investment in Tata Motors’ electric vehicle and infrastructure business.

The investment, which will be in an amount of almost $1 billion (₹7.5 billion), will result in TPG and its co-investors acquiring between 11% to 15% of the business, at an equity valuation of up to $9.1 billion.

The new company will leverage the existing investments and capabilities of Tata Motors and will develop electric vehicles, advanced automotive technologies, and focus investment on charging infrastructure and battery technologies. Over the next five years, the company expects to create a portfolio of 10 electric vehicles and, in association with Tata Power, catalyse the creation of a widespread charging infrastructure to facilitate rapid electric vehicle adoption in India.

The investment will be contributed in tranches over a period of up to 18 months from first closing, which is expected to be completed in March 2022.