Tata Motors and Mahindra & Mahindra tap the brakes on electric vehicle fundraising initiatives

29 May 2023 , 11:01 AM

Tata Motors and Mahindra & Mahindra (M&M) have stalled their plans to sell stake in their EV units due to valuation mismatch. As per the reports of the Economic Times, both the companies have suspended the plans over the companies have not received bids at the valuation they were seeking.

Tata Motors and Mahindra and Mahindra had strategically established separate subsidiaries dedicated to their electric vehicle (EV) ventures. However, in the recent times, the enthusiasm from investors has waned, primarily influenced by external factors such as the series of interest rate hikes implemented by the US Federal Reserve. As a result, both the companies have suspended the plans to raise further funds for their respective EV arms. This decision may temporarily slow down the EV expansion plans, Tata Motors and Mahindra & Mahindra remain committed to their long-term vision of electric mobility.

M&M was in talks with investors to raise up to $1 billion through a stake sale in Mahindra Electric Automobile (MEAL), has not received bids at the valuation it was seeking, as per the reports.

Tata Motors raised $1 billion for EV arm from TGP Rise Climate in 2021. M&M raised $250 million from BII in 2022.