The future of Tata Motors' Spanish bus-manufacturing subsidiary Hispano Carrocera is unclear as the euro zone country's challenging market conditions have forced the Indian automobile giant to mull various strategic options for the facility.

Cyrus Mistry, chairman of Tata Motors, on Wednesday told shareholders that the company was thinking over what to do with Hispano Carrocera. He said the drastic decline in demand in the European markets over the past few years had hit sales of vehicles very hard.

Speaking on the topic, Mr. Mistry said, "The Spanish market is challenging... We are examining various strategic options."

Mr. Mistry was addressing a group of shareholders at the company's 68th annual general meeting (AGM) in Mumbai on Wednesday. He, however, did not disclose precise details on the options under the company's consideration.

Available figures suggest that Tata Motors' worldwide wholesales slipped 14 per cent year-on-year in July this year.