Rumour: Tata Motors selling minority stake in JLR

According to a media report, Tata Motors could be planning to sell a minority stake in Jaguar Land Rover. The company could also be looking at forming a joint venture to lower costs. 

Tata Motors, which has a 100% stake in the British luxury carmaker is reportedly holding preliminary talks with potential advisers to weigh-in its options. It could be looking at strategic partners or sovereign wealth funds for fresh equity. However, Tata Motors has not confirmed any of these reports currently floating in the media. 

With a forecast of a global economic slowdown, Brexit and the US-China trade war, Jaguar Land Rover sales have slumped significantly. The company's operating profits dropped to GBP 2.2 billion in Q3 of FY2019. This resulted in Tata Motors reporting the highest ever quarterly loss of Rs. 26,961 crore at the end of December 2018.

Source: Bloomberg