TVS in talks to raise up to $500 million for EV subsidiary
TVS Motor, India’s third largest two-wheeler maker, is in talks with a clutch of global private equity investors to raise $300-500 million (Rs.2,220-3,700 crore) for its electric vehicle subsidiary at a valuation of $3.5-4 billion, three people aware of the matter said.
In the second half of October, TVS had carved out a subsidiary for electric vehicles, reasoning that it will give it “scale and flexibility” to expand the EV business.
The Chennai-based company didn’t respond to an email seeking comment till press time Monday.
Another homegrown automaker, Tata Motors, had raised $1 billion from TPG Capital in October at a valuation of $9.1 billion for its EV business. TVS’ rival, Bajaj Auto, in July had announced a plan to set up a dedicated electric vehicle subsidiary, which will primarily cater to manufacturing and selling of two-, three- and four-wheelers.
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