As per the latest news report that emerged on the Internet, Tata Motors, an Indian automaker, has been looking for a foreign partner for its domestic passenger vehicle business. The homegrown automaker seeks to sell a unit for around $1250 million (₹9,417 crores) and is in talks with several automakers, including East Asian and European players to sell up 49 percent stakes.
The decision to bring a strategic partner comes twelve years after the company purchased JLR from Ford for USD 2.3 billion. That deal took the Indian automaker into the club of the world's biggest car players.
An official gave a statement to a prominent publication and said that the company wants to manage and run the Indian passenger car business and hence it would not sell majority stakes to global players.
TML Business Analytics Services, a subsidiary of Tata Motors will be rebranded Tata Motors Passenger Vehicles and issue new shares in the Rs 9,417 crore payments to the parent firm. Tata Motors also conducted discussions with some Chinese car firms, including Geely, Changan, and Chery. However, stressed India-China relations had delayed the contract negotiations.
Sources cite that Tata Motors had discussions with France's PSA among European automakers. However, the deal negotiations has slowed down due to PSA-Fiat Chrysler merger. For Tata Motors in India, Fiat Chrysler also has a JV production facility in India. PSA, however, is re-entering India with plans to introduce its brand Citroen next year.
After the separation of the passenger car business, the Indian automaker will continue to operate with its JLR and commercial vehicle business. Tata Motors started off with the manufacturing of locomotives and boilers under the name of Telco in September 1945, joined commercial vehicles in 1954, and began to produce passenger cars after more than three decades.
Any firm that joins TML Business Analytics would give fresh life to the passenger car business, claim experts.