NEW YORK ( TheStreet) -- Tata Motors ( TTM) is planning to sell off a stake in its financing unit as a means to repay debts, while eyeing a lucrative defense contract.

Tata's vice chairman Ravi Kant said the company is looking at various options for offloading the stake. The State Bank of India is reportedly interested in acquiring a 49% stake in Tata Motors Finance.

The head of Tata's commercial vehicle business Ravi Pisharody says that prices of the company's commercial vehicles could go up by 1% to 2% stemming from compliance with new emission rules.

Tata Motors is also bidding to supply 1,000 bulletproof vehicles to the Indian Army in a 3.5 billion rupee or roughly $76 million contract.

The potential value that officials have placed on the Indian defense market over a decade is $100 billion, according to Reuters. The government is currently permitting domestic companies to bid for large defense contracts, according to Reuters.

Tata Motors' American Depository Receipts (ADRs) have risen 2.4% to $15.50.

Other auto stocks are in mixed trading Tuesday morning.

Ford ( F - Get Report) is up 0.3% at $11.20, while Toyota ( TM - Get Report) has slipped 1.2% to $76.10.

According to the Detroit Free Press, Toyota's recalls and investigations into its sudden acceleration problems have led to an increase in complaints to federal auto safety regulators. The report says that 2,000 complaints of sudden acceleration were received before the recall, but since Jan. 22, another 743 complaints about sudden acceleration and 866 complaints about brakes in the 2010 Prius were received.

Separately, CNW Research has come out with a report showing that Toyota hasn't been displaced from its leading position yet. Its studies say that Ford, Honda ( HMC - Get Report) and Hyundai have become stronger on Toyota-product shopping lists, but haven't displaced the Toyota product from its #1 slot -- and that this means in the short term, Toyota will have to work harder to retain these customers and thwart any inroads by competitors.

Honda ADRs are up 0.6% at $33.80.

-- Reported by Andrea Tse in New York

>>See our new stock quote page.

Follow TheStreet.com on Twitter and become a fan on Facebook.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.