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Chinese car makers are no more in consideration for Tata Motors collaboration plan

Tata Motors has been exploring the opportunity and possible collaboration for its passenger vehicle business. As per reports, Chinese carmaker Chery was the front runner to purchase the Tata Motors passenger business. Post border tensions Tata has put the complete deal discussion on hold. As per sources, now Tata is exploring a possible partnership with Korean, Japanese, and European carmakers, avoiding Chinese. It should be noted that Chery and Tata Motors already have a partnership in the Chinese market for the Land Rover Jaguar business. However, the Indian automobile giant is currently reviewing all the partnership possibilities.

In March, before the outbreak of Corona Internationally, a report in different newspapers said that Tata is looking to transfer or partner with its Indian Passenger Vehicle Business to a different company. This is due to the constantly declining sales of passenger vehicles in India due to economic reasons. Chery Automobile Co Ltd was expected to buy a 49% stake in Tata’s Passenger Vehicle Unit. The new partnership would have allowed Tata Motors and Chery Automobile to develop new products including electric powertrain solutions etc.