Tata Motors has been hit by Daimler’s sale of its 5.34 per cent shares in the company.

India’s largest automotive manufacturer, which owns brands such as Jaguar Land Rover, saw its stock fall almost six per cent in the wake of the sale.

Daimler, the German premium car maker, confirmed the sale, which ended the partnership of the two manufacturers that began in 1954.

Over the past year, share prices in Tata Motors have risen, netting Daimler around €300 million (£272 million) for its stake.

The two companies have turned into competitors over the past couple of years, with Daimler building trucks, which is Tata’s speciality, as the company is the fourth largest truck manufacturer in the world, and premium Jaguar Land Rover products competing with Daimler’s cars.

Daimler is currently building a production plant in Chennai in south-east India to manufacture its trucks.

The manufacturer did not deem its equity participation in Tata to be "necessary" any longer, according to the Wall Street Journal.

Please share your thoughts

You must be logged in to post a comment.