Tata Motors has begun working on its plan to induct a foreign partner into passenger vehicle business and might transfer the unit for Rs 9,417 crore.
The group is in talks with several automakers, including European and East Asian companies, to sell as much as a 49 percent holding in its passenger vehicle business, according to a report by The Times of India.
Moneycontrol could not independently verify the story.
Tata Motors has, however, denied such reports issuing the following comment:
"All such published news about 'Tata Motors to sell up to 49% stake in PV Business’ and the names of potential partners/investors mentioned is incorrect and misleading."
The statement went on to add, "In March 2020, TML had announced the intent to subsidiarise its PV business as the first step towards securing mutually beneficial strategic alliances that provide access to products, architectures, powertrains, new-age technologies and capital. Securing a mutually beneficial alliance is a priority. However, it is not an imperative for today but an opportunity to be secured for tomorrow. 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.”
As per the earlier report, Tata Motors' subsidiary TML Business Analytics Services will be renamed Tata Motors Passenger Vehicles, and will issue fresh shares to the parent company towards the Rs 9,417 crore payment.
Tata Motors held discussions with some Chinese automobile companies, including Geely, Changan, and Chery, which is a 50 percent partner in Jaguar Land Rover's (JLR) China venture, the report said.
Strained relations between India and China had put a dent in the deal talks, a source said as per the report.
Among European automakers, Tata Motors has held talks with France's PSA, the report said. But since PSA has merged with Fiat Chrysler, the process has slowed down.