Tata Motors Seeking Tie Up With Chinese Companies For Local Car Business

Chery Tiggo Sport Coupe Concept
Chery Tiggo Sport Coupe Concept

The homegrown auto major is said to be in talks with two Chinese brands related to direct investment and joint venture

Tata Motors is reportedly convening with two Chinese car brands for a possible partnership related to its passenger car division as direct investment or joint venture could become the potential outcome. While the exact details of the automobile makers are not known, the tie-up could be focussed on a wide spectrum.

With the ever-changing customer preferences and the rapid technological development, compounded by the ensuing switch to green mobility solutions, car brands are looking for mutual partnerships with start-ups or even their own rivals to slash down the developmental costs across the globe.

Tata’s partnership could result in joint development of architectures, engines and electric vehicle technologies alongside sharing manufacturing workload. This may help the homegrown auto major in reducing the debut created locally while the debut exacerbated by JLR stood at Rs. 95,465 crore by the end of September.

chery tiggo 5x front

With future emission standards in mind and the need to invest in new technologies, Tata is reportedly seeking a partnership with a Chinese manufacturer. It comes hot on the heels of Mahindra and Ford revealing their JV company a few months ago. The former owns 51 per cent stake and the latter the remaining 49 per cent.

Ford is transferring its workforce and assembly plants in Chennai and Sanand as part of the deal. Well over two years ago, Suzuki and Toyota announced their mutual relationship for local and global benefits and the first rebadged product spawned out of their agreement went on sale in mid-2019.

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With Chinese companies looking to make a strong impact in the Indian PV market, the opportunity to partner Tata may come as a lucrative offer. China’s SAIC-owned MG Motor has made a good initial impression among customers while Great Wall Motors and Changan Automobile appear to debut in the domestic market in the near future.

Tata has previous experience in working with Chinese brand Chery through Jaguar Land Rover and several reports indicated that the upcoming Blackbird mid-size SUV will be based on the same platform as Chery Tiggo 5X.