NEW DELHI -- Tata Motors Ltd. Tuesday declined to comment on a local newspaper report that it is looking to buy the stake of private equity investor Actis in truck and bus maker Swaraj Mazda Ltd.
"No comments," P.M. Telang, managing director in-charge of India at Tata Motors, told reporters on the sidelines of an industry conference.
The Economic Times reported earlier in the day, citing unnamed people, that Tata Motors is among other auto makers, a Kolkata-based engineering company and other private equity funds who are exploring the possibility of buying Actis' stake in Swaraj Mazda.
Actis--which focuses on emerging markets--holds a 7.7% direct stake in Swaraj Mazda and a further 9.3% through its CDC unit, the newspaper said.
Japan's Sumitomo Corp. holds a controlling 53.52% stake in Swaraj Mazda, which began commercial production of vehicles in 1986. Isuzu Motors Ltd. owns 1.99% of Swaraj Mazda.
U.K.-based Actis didn't immediately respond to an e-mail query by Dow Jones Newswires.
A stake buy will likely further boost Tata Motors' presence in India's expanding truck and bus market where it is already the market leader.
In 2004, Tata Motors had bought South Korean truck maker Daewoo Commercial Vehicle Co. In June last year, the Indian auto maker acquired U.K.'s Jaguar-Land Rover luxury car brands from Ford Motor Co.
Mr. Telang said also that Tata Motors is planning to initially introduce an electric version of its Indica hatchback in the U.K., Denmark and Norway in the first quarter of 2011.
The company is yet to decide on manufacturing the car in Europe, he said, adding it will study potential demand in India before making a decision on selling the electric Indica car in the country.
Sourcewsj.com
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