Standard Chartered Bank announced on November 6 that it has partnered with Tata Motors to offer supply chain finance solutions to the automaker's electric vehicle (EV) dealers.
At present, Standard Chartered Bank offers inventory funding limits to the ICE (Internal combustion engine, or vehicles that run on petrol or diesel) dealerships of Tata Motors, across its passenger and commercial vehicle businesses.
As part of the partnership, the bank will now be able to extend additional limits to the dealers exclusively for procurement of EVs from Tata Motors, through its subsidiary Tata Passenger Electric Mobility Limited (TPEML).
Tata Motors holds a market share of over 73 percent in the Indian EV market and this funding solution will further augment the company’s efforts to increase EV adoption in the country and provide its dealers access to finance for their EV business, the company said in a release.
TPG Rise Climate is an investor at TPEML and together they aim to invest $2 billion by 2026 to launch 10 new electric vehicles, build a dedicated BEV architecture, support local manufacture of key components and development of advanced automotive and battery technologies. The EV maker also intends to catalyse the creation of a widespread charging infrastructure as well as growth of other infrastructure to facilitate rapid EV adoption in India, the company release added.
Ankur Khurana, Managing Director & Co-Head, Client Coverage, India, Standard Chartered Bank, said, “We are excited to extend our supply chain offering to the high growth EV business of Tata Motors. This augurs well for our strategy to support sustainable industries, and is yet another testimony of our long-standing engagement with Tata Motors and the Tata Group, which spans over many decades and represents one of our most valued relationships globally.”
Commenting on the partnership, Dhiman Gupta, Chief Financial Officer, Tata Passenger Electric Mobility Ltd and Director, Tata Motors Passenger Vehicles Ltd, said, “EV customers today expect a differentiated experience at various touch points in their ownership journey with the brand. As leaders of the 4-wheeler EV space, we are committed to working with the right partners in our effort to further grow the market. To that effect, we are happy to partner with Standard Chartered Bank to further assist our authorised passenger electric vehicle dealer partners with an exclusive financing programme.”
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