Tata Motors will split its commercial vehicle and passenger vehicle businesses into separate entities.

The Board of Directors of Tata Motors Limited (TML) has approved the proposal of demerger into two separate listed companies. 

TML will split its commercial vehicle and passenger vehicle businesses into separate entities. The latter includes the passenger vehicles, EVs, JLR and its related investments in another entity. 

TML has stated that the demerger will be implemented through an NCLT scheme of arrangement and all shareholders of TML will continue to have identical shareholding in both the listed entities. The company believes that the demerger is a logical progression of the subsidiarization of PV and EV businesses done earlier in 2022.

Speaking about the demerger, N Chandrasekaran, Chairman of Tata Motors, said, “Tata Motors has scripted a strong turnaround in the last few years. The three automotive business units are now operating independently and delivering consistent performance. This demerger will help them better capitalise on the opportunities provided by the market by enhancing their focus and agility. This will lead to a superior experience for our customers, better growth prospects for our employees and, enhanced value for our shareholders.”

The official statement further adds that the NCLT scheme of arrangement for the demerger will be placed before the TML Board of Directors for approval in the coming months and will be subject to all necessary shareholder, creditor and regulatory approvals, which could take a further 12-15 months to complete. The demerger will have no adverse impact on employees, customers, and the company's business partners.

Jindal could initially get over 30% stake in the company with MG Motor continuing to control a majority stake

According to a media report, Sajjan Jindal, Chairman and Managing Director of the JSW Group, is all set to acquire Ford’s Chennai plant.

Reports suggest that the steel magnate is setting up a new company by buying a sizeable stake in MG Motor India. He is also said to be in talks with China-based Leapmotor to license their EV technology.

It has been reported that Jindal is looking to acquire 45-48% of MG Motor India after the wholly-owned subsidiary of China-based SAIC Motor decided to dilute its stake. The Hero Group, Reliance and Premji Invest were also said to be in the race to acquire the automaker.

As per the latest reports, Jindal could initially get over 30% stake in the company with MG Motor continuing to control a majority stake along with local financial institutions and employees. There are plans for an IPO that would give the Jindal entity a controlling stake.

Source: ET Auto

Maruti Suzuki to acquire 100% of equity shares of Suzuki Motor Gujarat for Rs 12,841.1 crore.

The Suzuki Motor Corporation (SMC) is increasing its stake in Maruti Suzuki from 56.48% to 58.19%. Maruti has also approved the deal to acquire a 100% stake in Suzuki Motor Gujarat (SMG).

According to a statement, the Board of Maruti Suzuki India has approved the issuance of 1.23 crore equity shares of face value of Rs 5 each to Suzuki Motor Corporation at a price of Rs 10,420.85 per share.

The board of Maruti Suzuki India has executed the share purchase and subscription agreement to acquire 100% of equity shares of SMG owned by Suzuki Motor Corporation for Rs 12,841.1 crore.

In August, the company’s board had approved the issuance of shares to SMC on a preferential basis for the acquisition of a 100% stake in SMG. With this acquisition, Maruti Suzuki aims to reduce complexity and consolidate all manufacturing-related activities under one entity.

Source: HT Auto

Hyundai India aims to achieve a production capacity of 1 million units per annum.

Hyundai has announced the acquisition of General Motors' Talegaon plant. The Asset Purchase Agreement (APA) has been signed by the two parties. The completion of the acquisition and assignment is subject to regulatory approvals.

GM's Talegaon plant currently has an annual production capacity of 1,30,000 units. Reports suggest that Hyundai plans to expand it by investing more than Rs 5,000 crore over the coming decade.

Together with its Sriperumbudur unit near Chennai, Hyundai India aims to achieve a production capacity of 1 million units per annum. According to the company, manufacturing operations at the newly acquired facility are planned to commence in 2025.

In 2017, General Motors terminated its operations in India. Since then, the company has been on the lookout for a suitable buyer. In 2019, GM entered into negotiations with China's Great Wall Motors. However, these failed to reach fruition due to regulatory hurdles.

Suzuki Motor Gujarat Pvt Ltd is a wholly-owned subsidiary of Japan-based Suzuki Motor Corporation.

Maruti Suzuki India Ltd (MSIL) has decided to terminate its contract manufacturing agreement with Suzuki Motor Gujarat Pvt Ltd (SMG). MSIL will also acquire the shares of SMG, which is a wholly-owned subsidiary of Japan-based Suzuki Motor Corporation (SMC).

The termination of the contract agreement has been approved by the Maruti Suzuki Board of Directors. However, the acquisition of SMG is expected to be completed by the end of FY2024, subject to legal and regulatory compliances, including minority shareholders' approval.

According to RC Bhargava, Chairman of MSIL, the company will take over EV production from Suzuki Motor Corporation. MSIL is also open to purchasing the battery plant, but for now, it will remain separate from this transaction.

"We Have not arrived at any valuation of Suzuki's stake; it depends on the book value. Once we take over the plant, employees of the Gujarat facility will be now part of MSIL's workforce," Bhargava added.

Source: Money Control

OLX is owned by the Dutch investment firm Prosus.

According to a media report, CarTrade is set to acquire OLX India's auto sales business for Rs 537 crore.

CarTrade Tech, in a stock exchange filing, has revealed that it plans to acquire a 100% stake in Sobek Auto India Pvt. Ltd. The acquisition is expected to be completed in 21-30 days.

The filing also mentioned that Sobek had entered into an Intellectual Property License Agreement and a Transitional Support Agreement for the use of certain brands and technology.

OLX is owned by the Dutch investment firm Prosus. Earlier this year, Prosus had stated that it was divesting OLX's automotive business due to weak macroeconomic conditions and rising challenges in the segment. Last month, the company said that it was looking for buyers for OLX classifieds after the latter closed its offices located in South and Central America.

Source: ET Auto

JSW Group's listed entities: JSW Steel and JSW Energy, will not have any exposure to this venture.

Sajjan Jindal, Chairman and Managing Director of the JSW Group, is said to be in the race to acquire a majority stake in MG Motor India.

According to media reports, Jindal is looking to acquire 45-48% of MG Motor India, which is a wholly-owned subsidiary of China-based SAIC Motor. Dealers and Indian employees will control around 5-8%.

This will ensure that at least 51% of the company remains in Indian control, with a larger portion of Indians making up the company's top management. Reports also suggest that JSW Group's listed entities: JSW Steel and JSW Energy, will not have any exposure to this venture.

Last month, MG announced its plans to dilute its stake in the company. Initially, Reliance and the Hero Group were said to be in the race to acquire the automaker, along with JSW Group and Premji Invest.

Source: ET

MG is also said to be in talks with JSW Group and Premji Invest for equity sales.

Earlier this week, MG Motor India announced its 5-year plan, which includes setting up a second manufacturing unit. The carmaker also confirmed its plans to dilute its stake in the company.

Now, reports have emerged suggesting that Reliance and the Hero Group could be in the race to acquire a majority stake in MG Motor India. The company is also said to be in talks with JSW Group and Premji Invest for equity sales.

According to media reports, MG is looking to finalize the deal by the end of this year. It is said that the dilution and takeover will take place in a phased manner.

MG is looking to boost its production capacity to 3 lakh units. The carmaker has also lined up 4-5 new models for the Indian market, most of which, will be EVs. For this, MG had been trying to raise funds from its parent company SAIC for the last 2 years. However, companies with Chinese links have been facing increasing hurdles in getting approvals for fresh investments since the Indo-China border flare-up.

Source: TOI

The Lifelong Group are manufacturers of parts and assemblies for Hero MotoCorp and General Motors.

Indian car repair start-up GoMechanic has been acquired by a consortium led by car parts manufacturer Lifelong Group.

GoMechanic has been in the news recently after co-founder Amit Bhasin admitted to financial misreporting. It was followed by massive layoffs and a third-party audit of the company’s accounts.

Without divulging the details of the deal, Lifelong Group stated that the transaction would assist in preserving the ecosystem at large and also help provide a continued livelihood to the employees of GoMechanic.

The Lifelong Group are manufacturers of parts and assemblies for Hero MotoCorp, General Motors, Arvin Meritor, Magna International Inc and BorWarner Inc, among others. The deal will help the company expand its operations in the automotive service and repair sector.

GoMechanic was founded in 2016. It operates a network of partner garages that offer car repair services. The platform is said to have over 900 garages in more than 40 cities. Some of its major investors include Tiger Global, Sequoia Capital and Chiratae Ventures.

Source: ET

Mahindra will remain a co-shareholder in Peugeot Motorcycles (PMTC).

Germany-based holding company, Mutares SE, is all set to acquire a majority stake in Peugeot Motorcycles. The company has made an offer to acquire 50% equity and a controlling stake of 80% in the Mahindra-owned French 2-wheeler brand.

According to media reports, the transaction is expected to be finalized in Q1 2023. Mahindra will remain a co-shareholder.

Peugeot Motorcycles manufactures two and three-wheeler scooters at its Mandeure factory in France. The company has around 3,000 touchpoints across three continents and generates revenues of approximately 140 million euros.