ImpactAlpha, Oct. 14 – Fresh off an initial $5.4 billion close for its first climate-focused fund, TPG is investing a chunk of those funds in a new electric vehicle unit of Tata Motors that aims to power up India’s nascent electric car market.
TPG Rise Climate and co-investor ADQ, an Abu Dhabi state-owned fund, will invest a combined $1 billion in Tata Motors Ltd.
The new EV unit plans to launch 10 passenger models over the next five years. With Tata Power, it will build out a charging infrastructure for passenger vehicles, which require different equipment than India’s abundant e-scooters and three-wheeled vehicles.
“There is significant momentum around India’s EV movement,” TPG’s Jim Coulter said, citing government support and consumer demand for green products. The Modi government has set a goal of 30% of car sales to be electric by 2030, up from 1% today.
The electric car momentum is part of a broader trend towards e-mobility, encompassing “boda boda” motorcycle taxis and “tuk tuk” auto-rickshaws, in developing nations.