Tata Motors’ EV Business Breaks Even, Eyes PLI Funds

6 Feb 2024 , 01:05 PM

Tata Motors has stated that its electric passenger vehicle business just broke even and is on track to become EBITDA positive once it receives Production Linked Incentive (PLI) payments from the government.

“At present, there are no plans to secure funds for our electric vehicle division. Our decision hinges on the specific amount of funding needed, the immediacy of the requirement, and the market conditions affecting the potential valuation. Presently, we believe the market is not favorable for fundraising activities. Consequently, we are not actively considering it at the moment. If and when we contemplate fundraising, we will assess the situation at that particular juncture,’ stated P. B. Balaji, Chief Financial Officer of Tata Motors, during a media conference call discussing the Q3FY24 results. 

In February 2023, media sources stated that Tata Motors was in discussions to generate $1 Billion through a share sale in its EV companies.

Earlier in 2021, Tata Motors revealed plans to raise $2 billion to support its EV operations. Out of the designated funds, the business raised $1 Billion from TPG Rise Climate for an 11 to 15% interest in its EV division, valued at around $9.1 Billion. The first tranche of financing was received in March 2022, and the second round of fundraising was completed in January 2023.

For feedback and suggestions, write to us at [e-mail]