Tata Motors weighing strategic options for Spanish arm Hispano
Aug 25 2013 , New Delhi
"The Spanish market has been challenging and all bus manufacturers have seen significant de-growth. We are examining various strategic options and a decision will be taken after that," a Tata Motors spokesperson told PTI.
She was responding to a query on whether Tata Motors is looking to curtail Hispano Carrocera's operations due to the slowdown in Europe, especially in the Spanish market. She did not provide details on the options the company is considering.
As Europe reels under an economic slowdown, automakers in the region continue to suffer subdued sales.
According to Tata Motor's annual report for 2012-13, the company had provided Rs 245 crore for the loan given to Hispano Carrocera SA.
"Impairment triggered by continuous under performance, mainly attributed to extremely difficult market conditions in Spain. The company is in the process of evaluating various options and business prospects of Hispano," it had said.
A wholly-owned subsidiary of Tata Motors, Hispano Carrocera produces bus and coach bodywork in Spain and Morocco, with sales in several other countries of Europe.
The company designs, develops, manufactures and sells bus and coach bodywork on chassis from all the major original equipment manufacturers (OEMs) of Europe.
It is currently present in various segments, including city bus and intercity coaches. The company employs over 400 employees at its manufacturing facility in Spain and over 200 workers at the Morocco plant.
Tata Motors' global wholesale vehicle sales fell 14 per cent to 87,566 vehicles in July from a year earlier.
Global wholesales of all commercial vehicles - Tata, Tata Daewoo and the Tata Hispano Carrocera range - were down 14 per cent to 40,882 units in July from 47,776 units in July last year.
Domestic sales of Tata Motors fell 30 per cent to 51,468 units in July.