After Tata finally bid goodbye to its 10-year-old dream car Nano, its time for another set back for the automobile group.
Ola and Uber have pulled out with a large order of over 2.7 lakh vehicles from Tata Motors and it’s speculated to go to the rival company Maruti.
There was a long tiff between Ratan Tata and Cyrus Mistry, which resulted in rival getting the benefit.
According to a Business Standard report, Mistry was asked to look into a proposal by Ola, which wanted to buy 150,000 cars. Tata also questioned Mistry through a letter if Tata Motors could execute both the Ola and Uber proposals it would be even better and profitable for the company.
“How will Tata Motors justify turning away any proposal for a guaranteed offtake? “, asked Tata.
The deal would have constituted majorly to the sales target and would have additionally helped company to come out of the losses faced due to Nano’s downfall. The report further added that Tata was in talks with Ola co-founder Bhavish who was keen to acquire 10,000 Nanos and Indicas/Indigos from Tata Motors on outright purchase, lease or joint venture. On annual basis, they had plans to acquire 150,000 such vehicles.
Due to the lack of positive response from Tata group, Ola pulled out from the deal, which was already been eyed by Maruti.
Ola’s rival Uber was also in talks with Tata Motors for a similar deal with a requirement of 120,000 Indicas and Indigos.
One of the major reasons for the failure of the deal is that Mistry had an objection to Tata personal investment in Ola.