Tata Motors has put a potential deal with Chinese carmaker Chery Automobiles on hold because of the increasing tension between both the countries.
The increasing tension between India and China in Galway Valley and other border areas has resulted in the boycott of many Chinese products across the country. Previously, we had reported that a Chinese automaker named as Chery Automobiles was interested in acquiring Tata Motors passenger vehicle business unit. Now, a recent report suggests that Tata Motor has put the deal with the Chinese automaker on hold due to the ongoing border tensions. A few sources at Tata Motors said that in middle of these tensions the talks with all the Chinese companies have been put on hold for a while. The officials of Tata Motors said that they are in talks with a few carmakers for appropriate partnership opportunities.
The carmaker has put the Chinese carmakers deal on hold due to the current border tensions
Recent reports by ET NOW suggest that the Indian carmaker has been looking out for suitable partners in Europe, China, Japan and Korea for their passenger vehicle units in India. Nevertheless, right now, Tata Motors is reviewing all the possible partnerships. In March this year, a report from TOI suggests that Tata is planning to transfer or partner up with different companies for their Indian passenger car business. The reason behind this plan is constant declining sales of the Tata vehicles in the Indian market. The China-based Chery Automobiles was expected to acquire a 42 per cent stake in the carmaker’s passenger vehicle unit. The new partnership would also have allowed both the automakers to develop new cars along with electric mobility solutions.
Due to the ongoing tension between both the countries, the Indian citizens have now decided to decrease the dependency on Chinese imports. Many Indian buyers have also raised their voices on social media platforms to boycott Chinese products. Right now, the Indian automobile industry is going through very tough times. Almost every carmaker across the country is facing a sales slump. Tata Motors is currently working on a few new products which are expected to hit the Indian shores in the near future. Tata has plans to launch an all-new entry-level SUV named as HBX, which was also showcased at the 2020 Auto Expo earlier this year.