- Wednesday, April 24, 2024
By: Radhakrishna N S
TATA Group has approached two global auto giants in a bid to form partnerships for its beleaguered British automotive business, media reports said today (12).
The deliberations by the Indian conglomerate are at an early stage, and it could still approach other potential partners, media reports said quoting people with knowledge of the matter.
Any collaboration with a Chinese automaker Zhejiang Geely Holding Group could potentially help Tata Motors-owned Jaguar Land Rover (JLR) in that market, where its struggles led to a $3.9 billion, or £3.04bn, writedown this year.
A deeper partnership between Britain’s largest carmaker and auto business BMW would build on an existing collaboration to develop engines and electric-drive technology, reports said.
In a bid to reduce the growing costs and share the burden of investing in electric vehicles, the Indian business giant is open to finding new partners for its British business – JLR.
“There have been no talks with Tata or JLR,” Geely said in a statement, whereas, German auto giant and Tata were reluctant to comment on the matter.
The global economic slowdown has hit major markets and businesses around the globe putting pressure on auto giants such as JLR.
One of the major potential hurdles for any partner to ink a deal with JLR is its financial difficulties.
The British carmaker is also near completing a £2.5bn savings drive which will result in thousands of job cuts worldwide.
The Indian company is open to getting new partners for its UK unit as it doesn’t plan on selling the company, N Chandrasekaran, chairman of group holding company, Tata Sons Ltd, said in an interaction recently.
Meanwhile, JLR has reported 41,866 units of retail sales last month, down 5.5 per cent compared to the same month in 2018, the company said yesterday (11).
The year-on-year (YoY) sales in China for the brand has increased by 16.2 per cent, which marked the fourth consecutive month of double-digit growth in the Asian country.
Among other markets for JLR, the UK registered an 18.7 per cent dip, while sales in North America and Europe were down by 0.3 per cent and 7.9 per cent, respectively.
