Tata Motors denies reports it is exploring stake sale in Jaguar Land Rover
- According to reports,
Tata Motorswas planning to sell a minority stake in Jaguar Land Rover.
- JLR had reported a massive loss of $3.4 billion in December.
- Stocks of
TataMotors had fallen by 17% in early February.
“There is no truth to the rumours that the company is looking to divest its stake in JLR,” Tata Motors told Business Insider, declining to comment further on “market speculation.”
For the quarter ending December 31, Tata Sons’ Jaguar Land Rover saw a loss of $3.4 billion following a big write-down. It was also in cost cutting mode, and reportedly axed 4,500 jobs late last year.
The ET report also states that Brexit, US-China trade war and signs of a slowdown in the global economy could be the reasons for the losses incurred by JLR. China, which has traditionally been one of the biggest markets for the luxury car. The division saw a drop in sales volume by 47% which also affected the company deeply.
In early February, its record losses also resulted in Tata Motors stock falling by 17% which also resulted in analysts cutting its earnings estimate by 35%.
Tata Motors had acquired the Jaguar Land Rover businesses from Ford Motor Company in 2008 for a net consideration of US $2.3 billion in an all-cash transaction.
Tata Motors loses over a billion dollars in market value
Tata Motors’ Jaguar Land Rover unit is a major casualty of the US-China trade war