Catching up with the heat of EV business in recent years, equity giants TPG Capital and KKR & Co. have been planning to invest at least $ 300 million to fund the expansion of TVS Motor electric vehicle (EV) business.
“There are at least half a dozen investment managers interested in TVS’s EV business. Most of the $ 300 million are with TPG Capital, which is particularly excited to invest in ESG-compliant clean energy-led ventures. It could be invested by KKR. TVS could then raise another $ 200 million. “
“The industry is growing about 5.6 times stronger. Consumer interest in the (EV) category due to increased sensitivity to climate impacts and improved total costs for operational proposals that take into account rising fuel prices. Has accelerated … Production-related incentives (PLIs), state subsidies, and other EV-related infrastructure initiatives The government has strengthened consumer confidence in this segment.” TVS Motor stated in its 2022 annual report.
According to the two above, TVS Motor EV Business may raise funds in the September quarter by selling 20-25% of TVS Electric Mobility Ltd.
Funds from PE major could be used to win more start-ups in the EV space and expand TVS Motor’s partnership with BMW Motorrad for co-development of new platforms including EV and future technologies.
The first person said it was the highest.
TVS Motor could also use the revenue to create an electric vehicle and battery manufacturing facilities and services, while tightly controlling costs, the second person said.
TVS Motor aims to increase profits in the EV business by leveraging the growing global demand for electric vehicles. Its funding plans are important in the context of India, which focuses on reducing urban vehicle pollution and reducing its reliance on fossil fuels amid rising fuel prices.
The government has also announced some incentives to promote the adoption of EVs.
TVS Motor invested in electric motorcycle maker Ultraviolette Automotive in December, and Amara Raja Batteries and Petronas Ventures invested in electric battery maker Log9 Materials.
Financing trends show that investors are becoming more motivated for related businesses such as EV and battery manufacturing and charging solutions.
TVS gained a 19% market share in the high-speed electric scooter segment in FY2010.
According to the company’s investor presentation, TVS sold more than 10,000 electric vehicles in 2010.