Tata Motors decides to subsidiarize its passenger vehicles arm, separating it from the CV business
This decision has been accompanied with the appointment of Shailesh Chandra as the new president of PV and EV business
Tata Motors Limited Board has provided approval to subsidiarize the passenger vehicle and the electric vehicle business verticals into one function, While the commercial vehicle vertical will operate as a separate function. However, the Group will continue to retain certain shared services and functions to ensuring cost efficiencies across certain areas of the business.
Tata Motors expects this process to be finished within the next year, and will go through due process with regulatory bodies, shareholders and creditors. Tata Motors has really turned itself around with new products, new processes and fresh design. However, more recently, emission norms have gotten stricter and the EVs are growing in the market. The automotive industry is also suffering huge losses because the recent outbreak of COVID-19. Tata Motors' refreshed BS6 line-up is ready and the management believe that subsidiariazing the passenger and electric vehicle business will secure the viability of the business. The move will also allow them to deal with all these changes in the industry better, and create strategic alliances -- no mention of which ones yet -- to get access to platforms, powertrains, technologies and capital.
Tata Motors has also announced the appointment of Shailesh Chandra who is currently president of the EV and corporate strategy verticals as President of the passenger vehicle business including EV, from April 1, 2020. Current President Mayank Pareek will be superannuating from Tata motors at the end of February 2021. Until then the two of them will be working together towards the necessary transition.