Tata Motors On The Lookout For A Partner For Its Car Business
One of the firm's top executives says the purpose of subsidiarisation of its car business is to look for a partner.
Tata Motors has announced that it is on the lookout for a business partner for its passenger vehicle business.
Earlier this year, the firm’s board approved to form a separate entity which would house the passenger vehicle business and the electric vehicle vertical.
Relevant assets, IPs and employees will be transferred to the new entity for it to be completely functional on its own. Now, the lookout for a business partner for its passenger vehicle business is to be ready for a radically different future.
President of Passenger Vehicles Business Unit (PVBU), Tata Motors, Shailesh Chandra has revealed that the whole purpose of subsidiarisation is to actively look for a partner.
He said such a collaboration can unleash a bigger potential in the next decade which is going to see significant investments in new technologies and regulations.
This, the carmaker believes would also help in enhancing the product launch intensity and in reducing product life cycles.
Thus far, no specific timeline has been set for the subsidiarisation process, noted Chandra, adding that his firm would like to accelerate the process of converting the passenger vehicle business into a separate legal entity in a year.
When it comes to finding the Tata Motors business partner, he stated that it is an active work “which we will continue to work on”. Assets and capabilities will be created when the partner is found in order to ensure a win-win situation for both firms.
During the first half of this fiscal year, the company posted double digit growth in its passenger vehicle segment and held market share of 7.9 percent.