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Daimler to offload stake in Tata Motors

Tuesday, 09 Mar 2010
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Daimler AG is mulling to shed its 5.34 per cent stake in Tata Motors for $430 million (approx Rs 2,000 crore).

The proposed deal is likely to be closed soon. Daimler's decision to offload its stake emanates from the fact that it has chalked out its own plan to retail commercial vehicles in India.

However, it is still unclear, though, if the money generated from sale of its equity will be pumped into its truck plant being commissioned near Chennai. The company has also got into trucks in a small way with the Actros.

According to sources, Daimler is likely to use India as a key hub for exports of these trucks taking advantage of the robust vendor base here which offers quality components at affordable costs.

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