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DaimlerChrysler to exit India Bajaj Tempo

German-US automaker DaimlerChrysler AG is selling its 16.8 per cent stake in Indian utility vehicle maker Bajaj Tempo to joint venture partner Firodia group for Rs 247.96 million.

The Pune-based Bajaj Tempo said in a notice to the Bombay Stock Exchange late Friday that Jaya Hind Investments, the holding company of the Firodia group, is acquiring 2,213,952 Bajaj Tempo shares from DaimlerChrysler for Rs 112 each.

It said the shares will be acquired on April 27.

The Business Standard newspaper on Saturday quoted a Bajaj Tempo statement as saying that the product commonality and market synergies between itself and Daimler Chrysler had decreased.

"DaimlerChrysler AG's global strategy necessitates concentration on their own brand products.

Bajaj Tempo too in their endeavour to serve the specific Indian transportation needs have developed their own range of three wheelers, agricultural tractors, multi-utility vehicles and light commercial vehicles," it quoted the statement as saying.

The Financial Express newspaper said Bajaj Tempo will continue to supply spare parts to DaimlerChrysler.

It also said the existing supply arrangement for Mercedes engines assembled by Bajaj Tempo for Mercedes-Benz India- majority owned by DaimlerChrysler, will also remain.

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