Tata Motors, TATA Tech Share Price Rises After JLR & China’s Chery Sign Deal & Collaboration With Microsoft

Tata Motors & Tata Tech share rose in today's trade after their separate deals with Microsoft & China's Chery.

Tata Motors shares climbed higher in morning trade on Wednesday (June 19) after the company’s subsidiary Jaguar Land Rover (JLR) and Chery signed a Letter of Intent to strengthen CJLR joint venture’s product offer for electrification in China. 

The Tata group firm announced that its arm JLR and China’s Chery have signed a letter of intent to license the Freelander brand to CJLR which is a 50:50 joint venture between Jaguar Land Rover and Chery Automobile Company to create electric vehicles in China.

Shares of Tata Technologies surged up to a percent to Rs 1,044 apiece on June 19 after it launched the second edition of InnoVent hackathon in collaboration with Microsoft and Tata Motors.

“Building on their 12-year relationship and well-established joint venture, JLR and Chery have signed a Letter of Intent to strengthen CJLR’s product offer for the next era of electrification in China,” the filing read. 

How Will Collaboration Benefit Both The Companies?

As per the filing, the new model of collaboration fully leverages both parties’ complementary strengths – with Chery holding a leading automotive market position in China while JLR has unrivalled heritage and design strength – creating mutually beneficial prospects for the future.

As per the proposed new licensing agreement, the CJLR joint venture will pivot to produce an advanced portfolio of electric vehicles based on Chery’s EV architecture, exclusively under the Freelander name. 

Further, Freelander will become a brand independent from both Chery’s existing portfolio and JLR’s modern luxury House of Brands.

JLR CEO On New Collaboration

JLR Chief Executive Officer Adrian Mardell said, “Today we are taking this important strategic step for JLR, one which underlines our ongoing commitment to China and complements our existing business in China. We believe that working together to develop new models of collaboration for the world’s largest and fastest-growing electric vehicle market, combined with the appeal of the Freelander brand, promises a very exciting future for CJLR,” reported Business Today.

Tata Motors Share Price

At around 9:29 a.m., Tata Motors shares went up by 0.25 per cent or Rs 1.6 at Rs 987.25 apiece on BSE. The market capitalisation of the company at around the same time stood at Rs 3,28,043.48 crore. 

In a year, shares of Tata Motors have given returns of over 74 percent against Nifty50’s rise of 25 percent.

(Disclaimer: The information provided in this article is for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)