The board of Tata Motors, India’s largest automobile manufacturing company, today approved a proposal to acquire 21 per cent stake in Hispano Carrocera S.A (HC), a well known Spanish bus manufacturing company, with an option to acquire 100 per cent holding. Tata Motors will have the license for technology and brand rights from HC. The total deal, consisting of equity, debt and technology licensing will add up to 12 million Euros (about Rs70 crore).
HC, which currently enjoys a market share of 25 per cent in the bus market in Spain, sells its buses in Europe and several other countries outside Europe. It has its own in-house product development facility for buses and coaches.
States Ravi Kant, executive director, commercial vehicle business unit, Tata Motors, “This strategic alliance with Hispano Carrocera will give us access to its design and technological capabilities to fully tap the growing potential of this segment in India and other export markets, besides providing us with a foothold in developed European markets.”
Tata Motors, the world’s fifth largest medium and heavy commercial vehicle manufacturer, produces more than 150 commercial vehicle models with a range of light, medium to heavy-duty trucks, buses and tractor-trailers. Tata Motors, with annual revenues of over US$3.5 billion (FY 2003-04), is a leading flagship company of the Tata Group.