- Daimler AG sold its 5.34 percent stake in Tata Motors.
- German automaker raises $400 million from sale.
- Daimler says the relationship between the two companies remains strong.
STUTTGART, Germany — Capitalizing on the renewed financial health of Tata Motors, Daimler AG said it has sold its 5.34 percent stake in the Indian automaker, raising more than $400 million.
The German auto giant said that the sale was discussed in advance with Tata and that "relations between the two companies are excellent and will not be adversely affected by this sale."
Tata has had long ties with Daimler in India, but in recent years has become a competitor in the luxury market after acquiring the Jaguar and Land Rover brands from Ford.
Daimler said it remains in "an excellent position to capitalize on the growth potential of the Indian passenger- and commercial-vehicle markets and continues to intensify its own activities there," including construction of a new truck plant in Chennai and the launch later this year of the new E-Class, which will be produced at its plant in Pune.
Inside Line says: Given Tata's ownership of JLR, the separation with Daimler was inevitable. — Paul Lienert, Correspondent
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