Udayavni Special

Actively scouting for passenger vehicle biz partner: Tata Motors


PTI, Oct 25, 2020, 12:09 PM IST

New Delhi: Tata Motors is actively scouting for a partner for its passenger vehicle business in order to be ready for growth in the next decade which would see huge investments going into new technologies, regulations, according to a top company official.

The auto major is looking for collaboration even as the process to carve out passenger vehicle (PV) business as a separate standalone unit gathers steam.

Earlier this year, the auto major’s board had approved to form a separate entity which would house the PV business, including the EV vertical, by transferring relevant assets, IPs and employees directly relatable to the vertical for it to be fully functional on a standalone basis.

“The whole purpose of subsidiarisation is to actively look for a partner because this is a reality for all of us that a collaboration can unleash a bigger potential in the next decade which is going to see significant investments in new technologies and regulations,” Tata Motors President Passenger Vehicles Business Unit (PVBU) Shailesh Chandra said in an interview.

The collaboration would also help in reducing product lifecycles and enhance new product launch intensity, he added.

“All this requires huge investments and agility is also the key. So this is something which we are actively looking into,” Chandra said.

He noted that while the subsidiarisation process is on, the company is alongside “actively looking for a partner” to create assets and capabilities with a win-win situation for both.

When asked about the timelines for both the initiatives, Chandra noted: “There are no specific timelines..as far as subsidiarisation process is concerned, converting the business into a separate legal entity, we would like to accelerate in a year and as far as the partner is concerned it is an active work which we will continue to work on.”

On the company’s performance in the PV segment, Chandra said that despite lockdown Tata Motors posted double-digit growth during the first half of this fiscal.

“This has resulted in a market share of 7.9 per cent in the passenger vehicle segment..the company’s product range has been appreciated for safety and pleasure of driving,” he said.

Chandra said the PV segment was witnessing growth revival as sales grew by 18 per cent in the July-September quarter this fiscal.

“A big part of it is pent up demand which has been a big factor for the growth. There was 20 per cent de-growth last year because people wanted to wait for BS-VI products leading to pent up demand in the last year itself. Further two months of lockdown this year has led to huge pent up demand,” he noted.

He added that demand would sustain during the pandemic period due to people preferring personal mobility over public transport.

“It remains speculative how the things would turn out to be beyond that and festive season because there is something offsetting these positive trends –pent up demand combined with personal mobility needs.

“It is the whole macroeconomic situation which is not witnessing growth, GDP is expected to see a 10 per cent decline. We will have to see the overall effect of that post the festive season. So far indications are that it will sustain,” Chandra said.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

PM’s visit to mfg facility further reinforces our commitment to health solutions: Bharat Biotech

ED attaches assets worth over Rs 27 crore of former IAS officer

BJP will not field minority candidate for Belagavi LS bypoll: Eshwarappa

Sebi bars NDTV promoters, others in insider trading case; company to appeal

8 States, UTs reported 69 pc of new COVID-19 cases in 24-hr span; tests per million cross 1 lakh

Raut hits back at Fadnavis for his barb against CM Thackeray

‘Delhi Chalo’: Protesting farmers charged with attempt to murder, rioting in Haryana



Related Articles More

Sebi bars NDTV promoters, others in insider trading case; company to appeal

Petrol price crosses Rs 82-mark, diesel above Rs 72 a litre

Irdai gives in-principle approval for Bharti AXA-ICICI Lombard deal

Fiscal Deficit at 120% of Annual Target at October-end, Impacted by Covid-19 Lockdown

Indian economy contracts 7.5 pc in Q2

MUST WATCH

Mangalore: Woman rescues a cat from 30 feet deep well | Ranjini Shetty | Udayavani

CM and central leadership will take final call on Cabinet expansion: Ashwath Narayan

Assorted flowers, fruits, and vegetables are grown in the terrace garden

Celebrating 25 Years of Laveena Masala | Since 1996 | Udayavani

Mangalore: Lashkar militants pro wall writing on on Circuit House Road | Udayavani

Latest Additions

Pak, US jointly complete restoration of Takht-i-Bahi Buddhist monastery

ICMR Approves CSIR’s Covid-19 Testing Method That Can Help Ramp Up Number of RT-PCR Tests

Bengal Spent Rs 4,000 Crore on Covid-19 Management So Far, Got No Assistance from Centre: TMC

164 cadets pass out of Indian Naval Academy

India, Sri Lanka & Maldives Agree to Bolster Maritime Security Cooperation, Ensure Peace for Common Benefit

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.