NEW DELHI: Tata Motors is actively seeking a partner for its passenger vehicle business in order to be ready for growth in the next decade, which would see large investments in new technology and regulations, according to a senior company official.
the car major is seeking collaboration even as the process to create the passenger vehicle (PV) business as a separate independent unit gains momentum.
Earlier this year, the car Major’s board had approved forming a separate entity that would house the photovoltaic business, including the electric vehicle vertical, by transferring relevant assets, IP and employees directly related to the vertical to make it fully functional independently.
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“The whole purpose of subsidiarization is to actively seek a partner because it is a reality for all of us that a collaboration can unlock greater potential in the next decade, which will see significant investments in new technologies and regulations,” Tata Motors The President of the Passenger Vehicle Business Unit (PVBU), Shailesh Chandra, told PTI in an interview.
The collaboration would also help reduce product lifecycles and improve the intensity of new product launches, he added.
“All of this requires huge investments and agility is also the key. So this is something we are actively looking into,” said Chandra.
He noted that while the subsidiarity process is underway, the company is together to “actively seek a partner” to create assets and capabilities with a win-win situation for both.
When asked about the timelines for both initiatives, Chandra noted, “There are no specific timelines … in regards to the subsidiarization process, turning the business into a separate legal entity, we would like to accelerate by one year and to the extent de The partner is concerned because it is an active job in which we will continue working. ”
Regarding the company’s performance in the photovoltaic segment, Chandra said that despite the lockdown, Tata Motors posted double-digit growth during the first half of this fiscal year.
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“This has resulted in a 7.9 percent market share in the passenger vehicle segment … the company’s product range has been appreciated for safety and driving pleasure,” he said.
Chandra said the PV segment was experiencing a revival in growth as sales grew 18 percent in the July-September quarter of this fiscal year.
“A big part of it is pent-up demand, which has been a major factor for growth. Last year there was 20 percent growth because people wanted to wait for BS-VI products to lead to pent-up demand in the last year. Another two months of lockdown this year has led to a huge pent-up demand, “he said.
He added that demand would continue during the pandemic period because people prefer personal mobility to public transport.
“It remains speculative how things would turn out beyond that and the holiday season because there is something offsetting these positive trends: depleted demand combined with personal mobility needs.
“It is the whole macroeconomic situation that is not experiencing growth, GDP is expected to experience a 10 percent drop. We will have to see the general effect of that after the holiday season. So far there are signs that it will continue.” he added. Chandra said.
the car major is seeking collaboration even as the process to create the passenger vehicle (PV) business as a separate independent unit gains momentum.
Earlier this year, the car Major’s board had approved forming a separate entity that would house the photovoltaic business, including the electric vehicle vertical, by transferring relevant assets, IP and employees directly related to the vertical to make it fully functional independently.
Follow TOI AUTO on Youtube
“The whole purpose of subsidiarization is to actively seek a partner because it is a reality for all of us that a collaboration can unlock greater potential in the next decade, which will see significant investments in new technologies and regulations,” Tata Motors The President of the Passenger Vehicle Business Unit (PVBU), Shailesh Chandra, told PTI in an interview.
The collaboration would also help reduce product lifecycles and improve the intensity of new product launches, he added.
“All of this requires huge investments and agility is also the key. So this is something we are actively looking into,” said Chandra.
He noted that while the subsidiarity process is underway, the company is together to “actively seek a partner” to create assets and capabilities with a win-win situation for both.
When asked about the timelines for both initiatives, Chandra noted, “There are no specific timelines … in regards to the subsidiarization process, turning the business into a separate legal entity, we would like to accelerate by one year and to the extent de The partner is concerned because it is an active job in which we will continue working. ”
Regarding the company’s performance in the photovoltaic segment, Chandra said that despite the lockdown, Tata Motors posted double-digit growth during the first half of this fiscal year.
AUTO | News, Opinions and Reviews
“This has resulted in a 7.9 percent market share in the passenger vehicle segment … the company’s product range has been appreciated for safety and driving pleasure,” he said.
Chandra said the PV segment was experiencing a revival in growth as sales grew 18 percent in the July-September quarter of this fiscal year.
“A big part of it is pent-up demand, which has been a major factor for growth. Last year there was 20 percent growth because people wanted to wait for BS-VI products to lead to pent-up demand in the last year. Another two months of lockdown this year has led to a huge pent-up demand, “he said.
He added that demand would continue during the pandemic period because people prefer personal mobility to public transport.
“It remains speculative how things would turn out beyond that and the holiday season because there is something offsetting these positive trends: depleted demand combined with personal mobility needs.
“It is the whole macroeconomic situation that is not experiencing growth, GDP is expected to experience a 10 percent drop. We will have to see the general effect of that after the holiday season. So far there are signs that it will continue.” he added. Chandra said.
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