Tata Motors to form separate subsidiary for passenger vehicles and EVs

- Tata Motors Board approves plan for a PV and EV business subsidiary

- Mayank Pareek will retire at the end of February 2021

The Tata Motors (TML) Board has in-principle approved to form a subsidiary for the brand’s PV business (including EV) by transferring relevant assets, IPs and employees directly relatable to the PV business for it to be fully functional on a standalone basis through a slump sale. However, certain shared services and central functions will be retained at TML to deliver cost efficiencies for the entire group. The proposed transfer shall be implemented through a scheme of arrangement, which will be tabled for approval to the TML Board over the next few weeks.

Implementation of the scheme will be subject to regulatory and statutory approvals as applicable, including approval of shareholders and creditors. The transfer process is expected to be completed in one year. A move towards subsidiarisation of the PV business is the first step in securing mutually beneficial strategic alliances that provide access to products, architectures, powertrains, new age technologies and capital.

Over the last few years, the Passenger vehicle (PV) business at Tata Motors has implemented a strong turnaround and has earned its right to grow by launching a slew of products like the Tiago, Tigor, Nexon, Hexa, Harrier and most recently the Altroz and Nexon EV. A fully refreshed BS6 ready product portfolio based on the Impact 2.0 design philosophy, consistently improving NPS scores, improved retail market shares and an exciting entry into the EV space coupled with improved profitability make the business ready to realise its potential

Tata Motors has appointed Shailesh Chandra, President, EV and Corporate Strategy as President of PV business including EV with effect from 1 April. He will be assuming responsibility for the PV business from Mayank Pareek. Shailesh and Mayank will work on transition over the next few weeks and Mayank will be retiring from Tata Motors at the end of February 2021.