- The project was shelved back in July 2017.
- Now, Tata Motors has put up the Racemo project besides other investment stakes for sale to raise fund.
- The carmaker has written off a working capital of Rs 1,641 crore in some of its vehicle projects.
Tata Motors has reportedly put up the ambitious Racemo project for sale along with its stakes in other group of companies. The carmaker has also written off a working capital of Rs 1,641 crore in some of its vehicle projects. According to reports, this decision has been carried out to raise funds.
Of the total amount that was written off, about 60 per cent is from Tata Motors, while the rest is from Jaguar Land Rover. The carmaker has not revealed any specific date for the sale or the timeline for the sale proceedings. However, the sale process which includes selling off TAL Manufacturing Solutions and parts of its defence business has already begun. The company is also wrapping up the businesses of Tata Hispano and Tata Precision Industries. On the other hand, JLR will continue to receive an investment of 4.5 billion pounds (approx. Rs 450 crores) in this financial year.
The company spokesperson has said the shelving of working capital is a one-time feature and won't recur. "Significant disruptions in the auto industry necessitated a review of our product development costs capitalisation policy. One time charges taken for those projects that are not being taken forward for affordability check," the company said in a statement.
When announcing the shelving the Tamo Racemo project, the carmaker also stated that they are going through a turnaround phase focusing on cost reduction. The Mumbai-based carmaker also came to realise that this premium product won’t be able to achieve the expected success in the country yet and hence, may not be worth the huge investment. Tata had admitted that their future product plans are being reviewed as well.
Announced in February 2017, the Tamo was a vertical dedicated for exploring innovative ventures within the passenger vehicle business. Then at the Geneva stage, the Racemo Concept was revealed as a mid-engine sports coupe. It was based on an all-new MOFlex platform powered by a 1.2-litre turbocharged three-cylinder Revotron unit. It had a radical design with scissor doors, muscular and futuristic body panels. The Racemo was last seen at the 2018 Auto Expo.