New Delhi: Homegrown auto main Tata Motors denied promoting upto 49 % stake in its home passenger car (PV) business.
“Securing a mutually beneficial alliance is a priority for Tata Motors. However, it is not an imperative for today but an opportunity to be secured for tomorrow”, the company advised ETAuto on late Tuesday night.
The company additional added, “The imperative for today is to win sustainably by delivering market beating growth and positive free cash flows by delighting our customers with exciting products and exceptional service while continuing to drive a strong cost savings agenda.”
This assertion is available in response to a news report stating that Tata Motors has set the ball rolling to induct a international strategic accomplice in its India passenger car business by transferring the unit to a wholly-owned subsidiary for Rs 9,417 crore.
Tata Motors has held talks with varied Chinese gamers, together with Geely, Changan, and Chery~
As per the news report on Tuesday morning, the flagship of Tata Group is in talks with a number of automakers, amongst them European and East Asian, to promote as much as 49 % stake in its India passenger car business, which accounted for four % (Rs 10,297 crore) of its turnover in fiscal 2020.
The company has held talks with varied Chinese gamers, together with Geely, Changan, and Chery, which is a 50 % accomplice in JLR’s China enterprise. The deteriorating relations between India and China has impacted deal-making, the report said as per a source near the developments.
Tata Motors has additionally been in dialog with a number of others, together with France’s PSA Group. But with PSA merging with Fiat Chrysler, things have slowed, sources said. Fiat Chrysler aly has a producing three way partnership with Tata Motors in India. PSA, however, is making a re-entry into India with plans to launch its Citroen model subsequent year, the report talked about.
“The India passenger car business is something that we want to run and hence, we will not hand over majority control of the unit,” the report said anonymously quoting a prime official of the company.
“Partnership is the future of our passenger vehicle business,” the quote additional added.
Meanwhile, the automaker termed the news report and the names of potential companions or buyers talked about there as “incorrect and misleading.”
It additional clarified, “Tata Motors is India’s foremost home grown auto company. Its products are receiving strong customer response with its best-in-class safety, stylish design and superior driveability. Over the years, initiatives taken by Tata Motors have and will continue to strengthen India and its auto sector.”
In March 2020, the company had introduced the intent to subsidiarise its PV business as step one in the direction of securing mutually useful strategic alliances that present entry to merchandise, architectures, powertrains, new-age applied sciences and capital.
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