Tata Motors is going big on electric vehicles with plans of investing as much as $2 billion in the new business over the next five years, a senior company executive told journalists.

"The aim is to lead the EV charge in the market," Shailesh Chandra, head of Tata Motors passenger vehicles business told journalists.

Tata Motors said TPG's Rise Climate Fund and Abu Dhabi state holding company ADQ had agreed to invest about $1 billion to expand the company's EV business for which it would form a separate unit.

TPG and ADQ would hold between 11% and 15% in the new EV entity, valuing it at about $9.1 billion, Tata Motors said.

The unit will invest in new models, dedicated battery electric vehicle platforms, charging infrastructure and battery technologies.

"The aim is to lead the EV charge in the market," said Shailesh Chandra, head of Tata Motors passenger vehicles business. The company will work with investors who are focused on a "carbon free world," he added.