Tata Motors (TTMT) has entered into a binding agreement with TPG Rise Climate (TPG) whereby TPG, along with its co-investor ADQ, shall invest Rs75bn in a new wholly-owned subsidiary (TML EVCo) at an equity value of up to US$9.1bn. We believe, the scale of capital investment plan (>Rs160 bn over next 5 years) coupled with ecosystem approach across Tata group (e.g. Tata Power, TCS, Tata Auto components, Tata Chemicals) is likely to accelerate EV penetration in India, thereby cause investors to pivot away from current ICE only PV OEMs.