Automakers in India have been facing a tough time for the past couple of years. Passenger vehicle sales have been on a continuous downward trend and the industry-wide slowdown has forced many OEMs to change their strategies for the country¡¯s market. Tata Motors is the latest in line for the same.
Tata Motors is reportedly looking for a global partner to invest in its passenger vehicles division in India. There is a strong speculation that the global partner will be one of the Chinese auto majors which are looking to expand their footprints globally and consider India as a key market for the same.
Experts have doubled down on Chinese Chery to be that sought partner for now. If and when the alliance takes place, the joint venture will be looking to a revamped future - with a new structure and pay rolls for employees to ensure a smooth transition.
Chery is expected to be a ¡®strategic investor and technology partner¡¯ in this partnership, as per a recent ET report. The partnership can come as a solid backing for Tata Motor¡¯s future endeavours for its passenger vehicle segment.
At this year¡¯s Auto Expo, Tata Motors had a huge lineup to showcase, ranging from its concept vehicles like Tata HBX and Tata Sierra to electric vehicles like Tata Nexon and Tata Altroz. In the passenger vehicle segment (which is now separate from the company¡¯s commercial vehicle segment) Tata Motors has promised to bring five electric vehicles to the Indian market by the end of this year.
After looking at prospects from around the world, Tata Motors now seems to be shortlisting the Chinese ones, which are financially sound and are looking to expand their presence in international markets. Apart from Chery, other prospects include Geely Holding Group Co. and Changan Automobile. Chery Automobile, however, is the one to most likely grab the chance, considering its already existing partnership in Tata¡¯s Jaguar and Land Rover divisions.
The process, however, is in early stage and Tata could still approach other potential partners, the report confirms citing people close to the matter. Interestingly, the source also mentions that the ongoing coronavirus pandemic has ¡°fastened the process¡± as negotiations have gone digital.
Chery, if or when it decides to join hands with Tata Motors, will be able to bring its financial and technical backing to the country. This would specifically include future vehicle technology like that of electric vehicles. So new and improved products from the house of Tata Motors can also be expected if the partnership is penned down, furthering Tata Motors already strong hold in the Indian market.