Daimler Sheds Stake in Tata Motors to Ramp Up Activities in India
March 11, 2010
Daimler sold its 5.34 percent stake in Indian-based Tata Motors, which manufactures commercial vehicles and cars.
Because Tata Motors' share price has gone up in the last year, Daimler will receive about $410.19 million from the sale of its shares.
According to Daimler, the company has ramped up its activities in India, especially in the passenger and truck markets, so an equity participation is no longer necessary. Daimler has been strengthening its presence in the Indian market to take advantage of the growth in the country's economy.
Daimler Trucks plans to take advantage of the growth in demand for commercial vehicles in the BRIC countries (Brazil, Russia, India and China). In 2009, Daimler Trucks founded its own production company, Daimler India Commercial Vehicles Ltd. (DICV), which is building a new plant in Chennai in the southeast of India. Starting in 2012, the new plant will initially produce light-, medium- and heavy-duty commercial vehicles for the Indian volume market under a new brand name. The production of trucks for export to other emerging markets will follow at a later date.
Daimler India Commercial Vehicles Ltd. (DICV) took over the marketing of Fuso branded commercial vehicles in India at the beginning of 2010. The first Fuso vehicle was sold to an Indian customer in January 2010.