While many auto manufacturers around the world are investing in India, Germany's Daimler today sold its 5.34% stake in Tata Motors for approximately 300 million euros ($407.42 million) to several groups of investors.  Tata's share price has increased and Daimler decided to cash in its investment although most investors are bullish on the Indian automotive industry and its ability to continue to offer value.

     In announcing the sale, Daimler said it is in an excellent position to capitalize on the growth potential of the Indian passenger and commercial vehicle markets and continues to intensify its own activities there.  "An equity position of Daimler in Tata is therefore no longer necessary.  This has been done in full consultation with Tata.  Relations between the two companies are excellent and will not be adversely affected by this sale."

Daimler did not report how much it discounted the price of the shares it sold.