Tata Nexon EV
The country is currently going through a transition phase. Electric vehicles are becoming popular among people, and they are preferring to buy electric vehicles instead of petrol-diesel vehicles. Meanwhile, there is news that two major EV companies of the country, Tata Motors and Mahindra & Mahindra, have put a brake on their expansion plan for the time being.
The government has set a target of making India an electric mobility country by 2030. For this, the manufacturing of electric 2-wheelers, 3-wheelers and 4-wheelers is increasing rapidly across the country.
Read this news: The government will raise money from the roads itself to make the road, this is the plan
Tata Motors and Mahindra’s plan
Tata Motors and Mahindra & Mahindra had made plans for expansion in view of the increasing demand in the EV segment. For this, both the companies had planned to raise funds. But now both have withdrawn their hands from this plan of fund raising. The reason for this is that companies are not getting the correct valuation of their EV units.
Both Tata Motors and Mahindra & Mahindra have converted their electric vehicle business into a separate subsidiary. Both the companies raised a good amount in 2021 and 2022 by selling their stake in these subsidiaries. For this both also got good valuation.
See also: GoFirst flights now canceled till May 30
The market spoiled the game, not matching with the valuation
Meanwhile, there has been a lot of upheaval in the market. Investors are investing cautiously as the US Federal Reserve continues to raise interest rates. That’s why most of the investors are shying away from any heavy investment. At the same time, Tata Motors and Mahindra & Mahindra are waiting to get the right valuation, so they have planned to postpone the fund raising for the time being.
Tata Motors has entrusted the task of finding investors for its EV arm Tata Passenger Electric Mobility to Morgan Stanley. Its estimated value is $ 10.5 billion. However, Tata has refused to comment on this news. This fund raising would also help Tata Motors repay its debt, which currently stands at Rs 43,700 crore. Similarly, Mahindra Electric Automobile was also planning to raise up to one billion dollars.
