Tata Motors is one of the leading players in India in the commercial vehicle segment. Now the company is making plans to strengthen its foothold in the LCV market segment. it is negotiating with Japanese auto maker Sumimoto for acquiring its 53.5 percent stake in Swaraj Mazda.
Indian LCV market segment is witnessing a sea-change in its scenario. General Motors has recently announced its joint venture with SAIC to produce LC vehicles in the country where SAIC will facilitate necessary auto parts and imports from China and GM India will facilitate its sales and distribution network along with its manufacturing facilities in India. Ashok Leyland also has joint venture with Nissan for manufacturing LCV in India.
Sumimoto is rumoured to be interested in selling its stake in Swaraj Mazda to book profits on its initial investments made. Swaraj Mazda currently has small 3 percent market share in India whereas Tata Motors already has 65 percent share in the Indian commercial vehicle segment. However, Tata Motors is tight-lipped as always about the developments. “We do not comment on speculation,” said Tata spokesperson when asked about the deal while Sumimoto did not reply at all to the queries.
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