Tata Motors passenger vehicles and electric vehicles will now come under a new subsidiary – says business ready to realise its true potential
Tata Motorshas separated its passenger vehicles unit onto a new subsidiary. This new subsidiary would also include electric vehicles.
- Mayank Pareek, the current president of passenger vehicles business unit will be retiring by the end of February 2021.
- The company, struggling with the
auto slowdownand the coronavirus pandemic, said that this move will help it focus on passenger vehicle and commercial vehicle segments separately.
“This shall help provide differentiated focus for the PV and CV (commercial vehicles) businesses and help each of them realise their potential. This decision is a first step in our plans to secure mutually beneficial strategic alliances for the domestic PV business and help secure its long-term viability,” the company said in a statement.
Mayank Pareek, the current president of passenger vehicles business unit will be retiring by the end of February 2021, while Shailesh Chandra, who is currently the president of the EV venture and corporate strategy, has been appointed as the president for the PV business including EV business with effect from April 1, 2020.
The Tata Motors sales volumes have been falling every month. The current lockdown due to the spread of novel coronavirus has further dented the prospects.
“The Passenger Vehicle business landscape is seeing rapid transformation in the form of tightening emission norms, push towards electrification, enhanced disruptions from autonomous and connected technologies,” said the company.
Earlier, the global ratings agency Moody’s had announced that it is reviewing Tata Motors for a possible downgrade. Moody’s said, “weaknesses in Tata Motors’ credit profile, including its exposure to final consumer demand for automobiles, have left it vulnerable to shifts in market sentiment in these unprecedented operating conditions, and the company remains vulnerable to the outbreak continuing to spread.”
The ratings agency further said that demand for new vehicles will reduce meaningfully over the coming months, especially in the European, Middle East, African and North American markets.
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