A Times of India article on 4th August,2020 carried reports about TATA motors selling a stake of 49% in it’s private vehicle business. The news spread like fire.
Certain platforms even published the names of potential partners and investors. Some sources state that the company was in conversation with European car manufacturers and Chinese companies like Chery Motors and Jivi since long. The entire deal was valued rupees 9417cr. The reason assumed was a concentration shift to commercial vehicles.
Tata in its statement in the Economic Times on 5th August however, denied these remarks, claiming them false and misleading. They also issued a clarification in this regard, addressing such rumours that it was trying to engage with other automakers for strategic purpose. It was, however, stated that in March, 2020 Tata Motors was planning to engage in strategic alliances in its passenger vehicle (PV) business in India. They also claimed of having no such plans in future also stating that they were not looking to sell the company’s stake but for strategic business partners, mainly other car manufacturers.