Several media reports were emerging to claim that Tata Motors may be planning to sell a stake in Jaguar Land Rover due to continuously widening losses and the ongoing COVID-19 situation. The carmaker has now issued an official statement in reply to the reports.
The Statement
“Unconfirmed and unsubstantiated reports have been published by some media alleging that Tata Motors may sell stake in Jaguar Land Rover (JLR). Tata Motors categorically denies and dismisses any such intent. Jaguar Land Rover is and remains a key pillar of Tata Motors and the wider Tata Group. We recently announced our results for Q1 and have indicated that we are maintaining solid liquidity despite the Covid-19 pandemic and expect to be cash positive from Q2 onwards.” Stated the official statement from Tata Motors.
The company also clearly expressed the importance of JLR to entire Tata group and their future plans in their official statement “Jaguar Land Rover business remains strong as it transitions to new electrified, autonomous and connected technologies to support its Destination Zero ambition.”
Prior to this, the Indian automotive circle went into overdrive as there were reports circulating that Tata Motors is planning to sell up to 49 per cent stake in its domestic passenger vehicle business. The carmaker then had to issue an official statement to deny the “unconfirmed” and “unsubstantiated” reports. It was reported that the company is planning to transfer the wholly-owned subsidiary for INR 9,417 crore.
The report also claimed that the automaker has commenced the process of inducting a foreign partner in its passenger vehicle business in the country. The report added that the company is in talks with several automakers, European and East Asian, to sell up to 49 per cent stake in its passenger vehicle business. But the official statement made it clear that the news is “baseless and without any merit.”
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Just recently, Jaguar Land Rover announced that former Renault boss Thierry Bollore will succeed Ralf Speth as chief executive of Britain’s biggest carmaker. The newly-appointed Chief Executive will take charge from 10 September 2020. Mr Bolloré has extensive expertise in the automotive business, most recently as CEO of Groupe Renault and previously in senior positions at global automotive supplier Faurecia. Mr Bollore’s challenges include returning the company to profitability in the wake of the coronavirus crisis.