Tata issues statement on reports of PV stake sale

On August 4, 2020, it was widely reported in the media that Tata Motors was selling up to 49% stake in its Passenger Vehicle (PV) business. The company has now issued a formal statement regarding this and has denied all such reports and termed them as "incorrect and misleading".

Official statement:

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.

Firstly, TML is India's foremost home grown auto company. Its products are receiving strong customer response with its best-in-class safety, stylish design and superior driveability. Over the years, initiatives taken by Tata Motors have and will continue to strengthen India and its auto sector.

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.