Tata Motors denies rumours of talks with Ford for buyout of PV division
There were reports of Tata Motors entering a partnership with Volkswagen, while another report said Ford was also looking to buy out the passenger vehicles division of Tata Motors. Tata denied of any talks taking place with Ford.Updated: Mar 10, 2017 11:02 IST
Hindustan Times, New Delhi
Tata Motors on Wednesday denied of having any talks with the American auto major Ford Motor Company over a buy out of the passenger vehicles division of the Indian carmaker.
“We categorically deny any rumours related to Ford. The information is false and baseless,” Tata Motors tweeted late Wednesday, shortly after CNBC-TV18 reported that “Ford is keen on expanding its business presence in India and mulling an equity deal with Tata Motors.”
The reports of talks between Ford and Tata came a day after another financial daily had reported of the Indian carmaker being in talks with Germany’s Volkswagen over a possible technological partnership to produce cars.
The Economic Times report stated that the two automakers are expected to seal a deal at the Geneva Motor Show next month. “Sharing vehicle architecture and technology is at the heart of the discussion,” the report quoted one person as saying.
“As prevalent in the automotive industry, we regularly have discussions with different companies to explore future collaborations but we do not have any specific announcements at present,” Tata Motors said in a statement on Thursday.
Tata Motors’ passenger vehicles segment has fallen for the past four years. The country’s largest automaker by revenue reported a 96% drop in its Q3 profit, and its market share has dropped from 13% in 2013 to around 5% in 2016.
Their models like Zest and Bolt have not been so great; Tiago sells 4,000 units monthly, and the crossover Hexa’s success is too early to predict.
Volkswagen is the top global carmaker, but there’s still some smoke left to clear in its emissions scandal. None of its recent launches in India have turned out to be success. Ameo was their last big launch, but not a blockbuster.
Noteworthy, Volkswagen Group owns luxury brand Audi, a rival of Jaguar Land Rover which is owned by Tata Motors.
First Published: Feb 23, 2017 11:38 IST