Tata Motors has announced that it plans to separate its passenger vehicle business in order to allow it to be fully functional on a standalone basis. The company wants to form a subsidiary for a better future for its PVs (including EVs).
Tata Motors has said that its passenger vehicle business has earned its right to grow now, after implementing a strong turnaround. Subsidiarisation is the first step in the company's plans to secure strategic alliances that open doors for shared products, architectures, powertrains, new-age technologies, etc.
The company’s board has approved to subsidiarise the PV business by transferring the relevant assets, IPs and employees directly reliable to the same through a slump sale. However, the company wants to retain certain shared services and central functions to deliver cost efficiencies for the entire group.
The transfer, which is still at a proposal stage, is expected to be completed in one year. Along with this move, Tata Motors has also announced that it has appointed Shailesh Chandra (currently President of EV and Corporate Strategy) as the President of PV business with effect from 1 April 2020. Mayank Pareek is the current President of PV business and he will retire from Tata Motors at the end of February 2021.
The in-house developed AMP and the (modified) D8 platform borrowed from Jaguar Land Rover will be the backbone of Tata Motors’ success in the years to come. Along with the sophisticated IMPACT design theme, these platforms will spawn a wide range of passenger vehicles (including electric vehicles) and help the company strengthen its footprint in the market.