Tata Motors shares drop 3% ahead of Jaguar and Land Rover deal

It was meant to be a good day for Tata Motors, as they are to sign the deal with Ford which sees the Indian Automaker take control of Jaguar and Land Rover. Well it seems as if share holders do not see this as a good investment for the company, as a result Tata Motors shares dropped by 35 ahead of the JLR deal.

Tata Motors have singed a $2 billion deal which sees them take both Jaguar and Land Rover from Ford. The thing is we know that Ford have had a hard time of late and sales figures have not been that great, which is why they had to raise some funds, so selling Jaguar and Land Rover was the only choice for them.

However I have to wonder if Ford has just passed on a bigger problem to Tata Motors, as JLR did no help with Ford’s sales figures, so what plans have Tata got. I do see a shinning light at the end of the tunnel for Tata though, as it seems that Indians are buying cars at a quick rate, and the company is in a unique position to offer Indian drivers a luxury option.

Source – The Economic Times