Tata Motors Plans NYSE Listing

Mumbai, July 28 | Updated: Jul 29 2004, 05:56am hrs
Tata group company and automobile giant Tata Motors has announced plans to seek listing on the New York Stock Exchange (NYSE).

The board of Tata Motors has approved a proposal to list the companys global depositary receipts (GDRs) on NYSE in the form of American depository receipts (ADRs).

Tata Motors executive director (finance) Praveen Kadle, while announcing the companys first quarter results, said, The company is not issuing new shares or raising new capital as part of the NYSE listing. This is intended to be a Level II listing without any concurrent fund raising and is expected to be completed later this fiscal.

In Talks With Brilliance China For Alliance

Mumbai, July 28: In a bid to foray into the Chinese market, Tata Motors is in talks with Chinese automotive manufacturer Brilliance China Automotive Holdings for a strategic alliance.
According to a company official, At this stage, we are in negotiations. We are evaluating all options which may include either exporting or assembling its passenger vehicles for the Chinese market. However, no final decision has been taken on the matter.
The official pointed out that China was a key market that could not be ignored. The new auto policy in China has raised some entry barriers for the new entrants and we will have to identify solutions, the official added.
Brilliance China is one of the leading automotive manufacturers in China which has a presence in segments like minibuses, sedans and automotive components. Its commercial vehicle brands include JinBei and Grace minibuses and its sedan brand includes Zhonghua are the popular brands in China.

Tata Motors executive director (passenger car business unit and engineering research centre) V Sumantran said, This is in line with the companys global strategy. As an international automobile player, we have a set of objectives and this move will definitely facilitate in achieving those.

Tata Motors has registered a 123 per cent increase in net profit at Rs 223.4 crore for the first quarter ended June 30, 2004 as against Rs 100.3 crore during the corresponding quarter previous fiscal. Net sales has increased from Rs 2,502.4 crore to Rs 3,574.1 crore during the quarter under review, registering a growth of 43 per cent.

Said Tata Motors executive director (commercial vehicles business unit) Ravi Kant, The company continues its thrust on cost reduction and other initiatives to reduce the impact of such cost increases. The company outperformed the industry growth with its thrust on new product introductions, and thus gaining market shares in both commercial vehicle as well as passenger car segments. Tata Motors has achieved a 41 per cent growth in sales volumes at 84,918 units during the first quarter. Domestic sales of commercial vehicles were 39,877 vehicles, an increase of 50 per cent and market share improved by 59.6 per cent from 57.1 per cent.