Tata Motors on Tuesday said it is looking to offload stake in its finance arm, Tata Motors Finance Ltd, amid report that the country's largest lender SBI may be buying into it.
"...definitely we have already announced that we are looking at various options of offloading our stake," Tata Motors vice-chairman Ravi Kant said. Asked about reports of the State Bank of India buying stake in the finance arm, Kant declined to comment.
He also refused to comment on estimated time line for offloading stake in Tata Motors Finance Ltd (TMFL) and the amount to be raised.
To date, TMFL is the largest financier of vehicles made by Tata Motors with over two million customers financed.
A media report had said that SBI may pick up 49 per cent stake in the financing arm. Commenting on automobiles market scenario, Kant said it has started to look up again across all segments.
"Baring any unforeseen circumstances, we feel that future should be holding quite well for India," Kant said, however, adding that rise in commodity prices, increasing inflation, interest rates hike and tightening up of liquidity may spring some surprises. He said the government should continue to support the auto industry.
"The government should be careful in withdrawing stimulus package. It should not withdraw and if at all withdraw, then it should be gradual and not a sharp withdrawal," Kant said.
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