The Tata group will soon divest its stake in luxury car company Jaguar-Land Rover (JLR). It has started talks with German carmaker BMW and Chinese company Geely to sell its stake. It is another matter that the Tata group is incurring losses in UK-based Jaguar and Land Rover (JLR).
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According to a Bloomberg report, the Tata group wants to reduce the expenses of these two companies. Also, due to the heavy investment on electric vehicles, they are going to do so. However, only in the initial stages of negotiations, which can take time to decide. Geely has said that there is no discussion about this with Tata or JLR. The Tata group incurred a loss of Rs 2789 lakh crore ($ 390 million) from operating both these companies. If there is an agreement with the Chinese company, then JLR is likely to benefit.
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If negotiations with BMW are successful, then the company will have ease of developing engines and manufacturing electric vehicles. Jaguar Land Rover has lost £ 395 million (Rs 34 billion) in the first three months of this year. JLR's company has also shown an exit route to 4500 employees worldwide to reduce expenses. The company invested around £ 2.5 billion in JLR this year. The company has said that this large loss will affect its earnings in this financial year and it could be harmful. The company, owned by Tata Motors, employs more than 40,000 people in the UK.
