NEW DELHI: Tata Motors, India’s biggest commercial vehicle maker, is in talks to buy Japanese conglomerate Sumitomo’s majority stake in Indian truck and bus maker Swaraj Mazda, a report said today.

The report in India’s Economic Times newspaper comes as Tata aims to boost its position in the light commercial vehicle market, which is set to see the entry of new players such as General Motors and its Chinese partner SAIC.

The deal under which Tata would acquire Sumitomo’s 53.5 per cent stake in Swaraj Mazda could be worth up to $54 million, the newspaper said.

A Tata Motors spokesman called the report “speculation.” US auto giant GM and China’s SAIC last week said they were forming a new alliance focused on India.