Key Points
The moment Tata Motor raised money from a private equity fund for its EV part of the business it was apparent that sooner or later, the demerger of EV business is bound to follow..
Not only because there is a PE player who wants to have a road map for the exit even before investing..
While it might appear that Tata Motors is restructuring the business due to vast differences in the two segments..
The fact is that very soon, the difference between the traditional ICE vehicle business and the EV business of even two-wheeler maker or a passenger car maker would also get highlighted and would have a negative impact on the the valuations..
So don't be surprised if the large auto players get into mode of restructuring the business to protect both the value and valuations...
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