Tata Motors on Thursday said that in view of the higher cost expectations from market participants due to the tight money market conditions, it has decided to withdraw its planned issue of non-convertible debentures (NCDs) on a private placement basis to raise up to ₹1,000 crore.

The company continues to have sufficient liquidity and will consider an NCD issue at an appropriate time and under normalised market conditions with necessary approvals, it said in a regulatory filing.

Tata Motors had said in a regulatory filing on May 5 that a board-constituted committee had approved an issue of 10,000 rated, listed, unsecured, redeemable NCDs of face value ₹10,00,000 each, at par, across three tranches.

The automobile industry had reported zero domestic sales and limited exports in April, for the first time in history, as factories remain closed amid the lockdown.

Auto industry representatives, in a joint submission by the Society of Indian Automobile Manufacturers (SIAM), Automotive Component Manufacturers Association of India (ACMA) and the Federation of Automobile Dealers Associations (FADA), had also written to the Ministry of Home Affairs to allow the sector to resume operations.

The industry had already been facing a severe downturn for over 15 months and, with the lockdown, it was losing revenue of ₹2,300 crore per day, they said.