Tata motors, one of the leading electrical vehicle manufacturers in the country, is in talks with global investors in order to raise at least $500-600 million more for its fast-growing electrical vehicles business, Economic Times reported.

The reports further added that the move by the company is a part of an ambitious strategy by the leader in the EV market to raise significant funds, both via external and internal sources to support its growth plans through product innovations specially of iys EV platforms.

The report added that the company has reached out to several marquee investors, impact funds, sovereign wealth funds from the Middle East, Singapore, Korea as well as Canadian pension funds.

“Several new pedigree investors are keen to be part of the new narrative at Tata Motors. The company is actively working on the combination of external and internal funds,” an executive said. “Interest for funding in the EV space has picked up significantly and the company is evaluating the options,” according to the reports by Economic Times.

The discussions with the potential investors are preliminary in nature and nondisclosure agreements are getting signed, as per the reports. It is also being said that the company may increase the fundraising target depending on the investors’ appetite.

As a policy and practice, Tata motors does not comment on speculation, a company spokesperson told Economic Times.

Tata motors is the first automaker in the country to sell 50,000 EV vehicles a year, which the company achieved in 2022 by selling the Nexon and Tigor EVs and commanding more than 80% market share.

Tata motors enjoys an early mover advantage in the Indian EV market. Its rivals are fast catching up with some of the EV launches seen recently at the auto Expo.