Tata Motors announced an additional investment of Rs 134 crores in Freight Tiger, a logistics company. This infusion takes the automotive giant’s total investment in the associate company to Rs 284 crores. This financial backing is expected to result in Tata Motors holding approximately 42% to 46% of Freight Tiger on a fully diluted basis. Tiger Logistics provides digital platform for shippers, logistics service providers and consignees.
The management views the logistics sector as undergoing a dramatic transformation where significant scope exists for leveraging artificial intelligence (AI). The ultimate goal of this investment is to increase efficiencies in overall logistics. By driving what the company terms "AI-led freight transformation," Tata Motors aims to simultaneously improve business intelligence and service quality while reducing costs across the value chain.
Girish Wagh, MD & CEO of Tata Motors Limited, underscored the strategic intent behind the investment during the corporate actions summary:
“As a significant step forward to driving AI in freight transformation in the logistics ecosystem, we invested additional Rs 134 crores in Freight Tiger taking our total investment to Rs 284 crores.”