Shailesh Chandra, president of the passenger vehicle business unit, said that despite the lockdown, Tata Motors’ growth in the passenger vehicle segment has been in double digits in the first half of the current financial year.
All assets of the passenger vehicle business will be transferred to the new company. In the next decade, the company will need to invest heavily on technology spending.
Tata Motors is actively seeking partners for its passenger vehicle business. Looking at the huge investment on technology for growth over the next decade, a partner is being sought. Sailesh Chandra, president of Tata Motors’ passenger vehicle business unit, said this in an interview.
Board has given approval for a separate company
The board of Tata Motors has already approved to convert the passenger vehicle business into a separate company. It will also include the company’s electric vehicle vertical. All assets, IPs and employees associated with the passenger vehicle business will be transferred to the new company. Chandra says a partner is being sought to fulfill the objective of setting up a separate subsidiary.
Products will help reduce life cycle
Chandra said that this partnership will help reduce the life-cycle of products and increase the number of new product launches. He said that this would require huge investment. That is why we are actively looking for partners. He said that the process of making the passenger vehicle business a separate subsidiary is in progress.
One year will become a new company
In response to a question, Chandra said that there is no timeline to make the passenger vehicle business a separate subsidiary and find a partner. However, he said that it may take 1 year to convert the passenger vehicle business into a separate legal entity.
Growth of passenger vehicle business in double digit
Chandra said that Tata Motors’ growth in the first half of the current fiscal year has been in double digit despite the lockdown. This has led to Tata Motors’ market share in the passenger vehicle segment rising to 7.9 per cent. He said that the company is promoting safety in its products.