Recently, Tata Motors revealed that they have no plans to bring foreign players into their business and that rumours of a stake sale to foreign players are totally baseless.
Tata Motors has recently dismissed the rumours that it’s planning to sell 49 per cent stake of its passenger vehicle business in India. The homegrown carmaker has clarified that there’s no plan to bring foreign players into their domestic passenger vehicle business and that such reports are totally baseless and sans merit.
“The report that you refer to is factually incorrect, highly speculative and misleading and we are taking it up with them”, said Tata in its official statement issued.
For the uninitiated, there were some reports stating that Tata Motors has been in talks with European and East Asian automobile manufacturers like Geely, Chery, etc for a tie-up. However, Tata Motors has confirmed that it doesn’t have any such intention in the near future,
“Firstly, TML is India’s foremost homegrown 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.”
However, the speculations cropped up for a reason. It’s worth noting that Tata Motors announced in March 2020 that it intends to form a subsidiary for its passenger vehicle business in India as its very maiden action towards securing mutually beneficial strategic alliances with regards to the products, powertrains, architectures, modern technologies as well as capital.
Besides, Tata has reported a massive loss as the ongoing coronavirus pandemic has hit the domestic and international sales pretty drastically. The company reported a consolidated net loss of Rs 8,443.98 crore during the first quarter of 2020. Tata’s British arm, Jaguar Land Rover also reported only 74,067 unit sales, thereby posting a 42.4 per cent decrease in its sales globally. That said, the current momentum for Tata Motors in India has started showing positive signs. Last month, the carmaker has reported a robust 154% sales growth on YoY basis, thereby outclassing Mahindra and Kia by a pretty big margin.