MUMBAI: Tata MotorsBSE -0.89 % is evaluating the possibility of acquiring a stake in shared mobility providers, as Uber, Ola and a host of other new age companies disrupt the way the transportation sector works.
The buying behavior of the millennial generation is going to alter the way in which the auto industry operates, Guenter Butschek, the managing director of Tata Motors, told ET in an interview. And in the new scenario, with a shift towards sharing from owning, shared mobility providers are going to become key stakeholders in the industry.
“We are very carefully studying possibilities (of picking up a stake) and we are certainly open for all kind of different partnerships,” he said.
Global automakers such as General Motors and Ford Motor have already made investments in shared mobility companies and alternative technologies to prepare themselves to meet changing market trends. GM has invested more than $500 million in Lyft, a competitor to Uber, and a Chinese car-rental technology company. Ford recently bought a shuttle service provider. Locally, the Tata Group has a tie up with Uber to supply 20,000 vehicles. Mahindra & Mahindra, Maruti SuzukiBSE 0.76 %, Toyota Kirloskar and Nissan Motor India also have car supply agreements with shared mobility providers such as Uber and Ola in India.
Tata Motors, India’s top automotive company by revenue, has already seen sales in its fleet segment more than doubling, thanks to the tie-up with Uber.
Referring to the rapid emergence of shared mobility providers in India, Butschek said there are many activities in the market which are directly or indirectly relating to the company’s business. The question is, he said, “Should we wait till they actually do our business or we actually invite them with their competencies to jointly improve our business. I would rather favor getting them on board to jointly develop our business than to actually see them getting into our business.”
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Source: Economic Times
