With an eye on EV portfolio, some leading automakers look to raise funds from outside

After the Tata Group raised Rs 7,500 crore for the new electric vehicle (EV) subsidiary, it seems other leading automakers are also looking to raise funds from outside. This clearly seems to be the next area of growth for the Indian auto industry and everyone wants to derisk and raise funds from outside.

The Mahindra Group today said on record that they are open to setting up a new EV company and may even set up a new EV brand in the future, but for the moment they are in talks with investors. Any investment from a private equity group will only ensure faster growth for the Mahindra Group in the EV space. They said that they are looking at 13 new SUVs by 2027, of which eight would be electric, some of which would be wholly new platforms.

TVS Motor Company, on October 21, had set up a wholly-owned electric vehicle subsidiary. Sources told CNBC-TV18 that the company is in talks with investors for funding from outside but is nowhere close to any deal as yet. But the company on record has told the exchanges that any talks of negotiation are wrong.

Bajaj Auto said they would wait for the right time to raise funds. They have also said that they want to ensure that the investments build the Bajaj Auto EV portfolio, ensure growth and do not lead to cash burn. For the moment, Bajaj Auto is confident of the performance and cost competitiveness of its in-house EV programme and that they would have EV introductions every year from 2022 onward.

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Sources say Maruti Suzuki does not need to raise funds from outside and don't see the need for setting up an EV subsidiary either. The company is well on course to roll out an EV in the Indian market before 2025.

Hero MotoCorp said they have a three-pronged strategy and an in-house EV programme which will kick off in March next year. They also have a tie-up with Gogoro and investments in Ather. They may not need funding from outside or to set up a new EV subsidiary as they have enough cash reserves at the moment.