Tata Motors Denies Intent Of Selling Stake In JLR
The automaker has stated that the reports on the matter are "unconfirmed" & "unsubstantiated".
Tata Motors has categorically denied reports regarding stake sale of its Jaguar Land Rover (JLR) subsidiary, and called such information “unconfirmed and unsubstantiated”.
In an official statement released today, Tata Motors has stated that it “categorically denies and dismisses any such intent (of selling stake in JLR)”. The automaker further stated that “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,” read the clarification.
It further stated that “Jaguar Land Rover business remains strong as it transitions to new electrified, autonomous and connected technologies to support its Destination Zero ambition”.
Media reports about Tata Motors JLR stake sale floated around after Tata Group’s talks with the British government on a financial rescue package failed. Reports said, the conglomerate will look for a strategic partner for JLR and also sell its UK steel plant.
Talks with the UK government took place because the British subsidiary lost £1 billion (Rs. 9816 crores) in the first six months of this year. However, they failed because the government is said to have put forth stiff conditions, including asking JLR to manufacture and sell more EVs than diesel vehicles.
Also, before the pandemic struck, foreign media had reported that BMW was looking to buy a stake in JLR. At that time, global brokerage Bernstein had said that JLR could fetch a valuation of £9 billion (Rs. 88,339 crores).