Relationship between Tatas and DaimlerChrysler

DaimlerChrysler India owns a 6.6% stake in Tata Motors and the two companies have a history of forming alliances in India.

In 1994, when DCX began its manufacturing venture for Mercedes-Benz cars in India, the two companies began a 51/49 joint venture (JV), which was then known as Telco. DCX gradually increased its holding and in 2001 it bought out the entire equity held by Tata Motors. This wholly-owned unit, however, still holds the aforementioned stake in Tata Motors.

Recently Tata Motors gave the go-ahead to Mercedes-Benz's plan to manufacture commercial vehicles in India by issuing a ”no objection certificate” for the venture. According to the Economic Times, Indian government regulations required that Tata signed the certificate before Mercedes-Benz was given the go-ahead for its Indian manufacturing plans. Mercedes-Benz's parent group, DaimlerChrysler (DCX), currently imports a relatively small number of Mercedes-Benz trucks. However, this means that the vehicles in question are subject to import tariffs, and Mercedes-Benz wants to begin production at its passenger car production facility at Pune before moving assembly to a purpose-built truck facility at Chakan, near Pune.

Source: Economic Times