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Tata Sons, Citi arm buy stake of Daimler

By Motortrend India Staff   |   09 March,2010

Tata Motors’ parent Tata Sons and Citigroup’s Mauritius investment arm, which mainly operates through the PN route, were the top buyers in the 5.34% stake sold by Daimler in Tata Motors.

Daimler in a media statement on Tuesday said that it is in an excellent position to capitalise on the growth potential of the Indian auto market. “An equity participation of Daimler in Tata is therefore no longer necessary,” the statement said, adding that this has been done in full consultation with Tata. Relations between the two companies are excellent and will not be adversely affected by this sale, the release added.

In the early nineties, Daimler had a JV with the Tatas for distributing its Mercedes Benz cars. It later bought out the Tatas from the venture. The brand with a star has been upping its market share in India. In the first two months of this year, it almost doubled its sales to a total of 800 cars. Last year, more than 3,200 well-heeled Indians bought its luxury car.

It may be pointed out that in 2007, Tatas gave a no-objection certificate to Daimler to manufacture its trucks in India, after which it partnered with Hero group. However, the partnership to build trucks was short-lived as the Hero group was not enthusiastic about the commercial vehicle business.

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