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Tata Motors May Sale Some of Its Financial Arm's Stakes

Tata Motors LTD, India’s biggest truck producer, is planing to sell a stake in its financing arm, as Reuters reports, citing a company official.

We are looking at various options for offloading the stake,” the company’s Vice Chairman, Ravi Kant said at a press conference in New Delhi. He failed to provide additional details about the business scheme.

Tata has performed similar actions in the past, in order to raise funds. In 2009, the company sold some stakes in its Tata Steel subsidiary in order to cover its Jaguar and Land Rover acquisition. According to the Mint newspaper, 49 percent of Tata Motors Finance Ltd might become the property of State bank of India, following current negotiations.

In addition to that, the company is expecting an increase in the price of commercial vehicles. "It can go up by 1-2 percent. New emission norms require new technologies, therefore prices will have to go up," said Ravi Pisharody, the commercial vehicles manager.

In another announcement, Tata Motors said that it is currently bidding to supply 1,000 armored vehicles to the Indian army through a contract which might be worth 3.5 billion rupees. The company will face competition form local manufacturers, such as utility vehicle producer Mahindra & Mahindra and also trucks and bus producer Ashok Leyland.

Tata said that it has developed a wide range of military vehicles, such as troop carriers and combat vehicles. This diversity should be one of the strong points for the carmaker's offer.
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About the author: Andrei Tutu
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In his quest to bring you the most impressive automotive creations, Andrei relies on learning as a superpower. There's quite a bit of room in the garage that is this aficionado's heart, so factory-condition classics and widebody contraptions with turbos poking through the hood can peacefully coexist.
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