Tata Group could separate from EV-related businesses

Tata Group may spin off its battery cell subsidiary Agratas, Bloomberg reports, citing insiders. This would allow the battery division to raise funds and go public in Mumbai later. The company’s electric vehicle business could await a similar faith.

Image: Tata Group

As for Agratas, Tata is in the early stages of discussing eventually breaking out its battery business as an independent unit. Bloomberg reports without naming sources due to the private nature of the matter. 

The sources added that a listing may value Agratas at 5 billion to 10 billion dollars.

The company is a full Tata subsidiary that recently announced a battery cell factory in the Indian state of Gujarat with an initial annual capacity of 20 GWh and is planning another cell factory in Bridgwater, UK

Agratas was in talks with banks to raise $500 million via a green loan to help develop its factories, Bloomberg News reported in January.

JLR, also wholly owned by Tata, declared Agratas its leading supplier for future electric cars last summer, although these have yet to materialise. The carmaker scaled back its EV plans this month and wants to launch only four, not six, full BEVs by 2026. So far, the Jaguar I Pace is the company’s only electric car.

Tata Motors, on the other hand, was listed as India’s most valuable carmaker last month due to its strong position in SUVs and EVs, according to the Bloomberg report. In our news, the company sold over 50,000 electric cars in India last year and plans to launch ten electric models by March 2026. 

This is also in line with Tata announcing in November 2023, that its Tata Passenger Electric Mobility unit would use the 800-Volt platform EMA developed by JLR to launch the Avinya EV. At the time, Tata considered this the start of a whole ‘Premium Pure Electric’ vehicle series.

Regardless, Tata appears to be looking at similar spin-off plans for its electric vehicle business. The Bloomberg source said that the EV operation may go public as a separate company and that some existing investors may want to exit

Tata has yet to comment.



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