Tata Motors is actively scouting for a partner for its passenger vehicle commerce with the intention to be able for growth in the next decade which would see immense investments going into new technologies, regulations, according to a top company official.
The auto major is on the lookout for collaboration even as the process to carve out passenger vehicle (PV) commerce as a separate standalone unit gathers steam.
Earlier this year, the auto major’s board had approved to form a separate entity which would house the PV commerce, including the EV vertical, by transferring applicable assets, IPs and employees directly relatable to the vertical for it to be fully functional on a standalone basis.
“The whole purpose of subsidiarisation is to actively look for a partner because this can be a reality for all of us that a collaboration can unleash a bigger potential in the next decade which is going to see remarkable investments in new technologies and regulations,” Tata Motors President Passenger Vehicles Trade Unit (PVBU) Shailesh Chandra told PTI in an interview.
The collaboration would also help in reducing product lifecycles and improve new product launch intensity, he added.
“All this requires immense investments and agility may be the key. So this is something which we are actively taking a look into,” Chandra said.
He famous that while thesubsidiarisation process is on, the company is alongside “actively on the lookout for a partner” to create assets and capabilities with a win-win situation for both.
When asked approximately the timelines for both the initiatives, Chandra famous: “There are no particular timelines..so far as subsidiarisation process is concerned, converting the commerce into a separate valid entity, we wish to accelerate in a year and so far as partner is concerned it is an active work which we will be able to continue to work on.”
On the company’s performance in the PV segment, Chandra said that despite lockdown Tata Motors posted double digit growth all through the first half of this fiscal.
“This has resulted in a market share of 7.9 per cent in the passenger vehicle segment..the company’s product range has been appreciated for safety and pleasure of driving,” he said.
Chandra said the PV segment was once witnessing growth revival as sales grew by 18 per cent in the July-September quarter this fiscal.
“A big a part of it is pent up demand which has been a big factor for the growth. There was once 20 per cent de growth final year because people wanted to wait for BS-VI products leading to pent up demand in the final year itself. Further two months of lockdown this year has led to immense pent up demand,” he famous.
He added that demand would sustain all through the pandemic period because of people preferring personal mobility over public transport.
“It remains speculative how the things would change into beyond that and festive season because there’s something offsetting these positive trends –pent up demand combined with personal mobility needs.
“It’s the whole macro economic situation which isn’t witnessing growth, GDP is expected to see a 10 per cent decline. We can have to see the overall effect of that post the festive season. So far indications are that it’s going to sustain,” Chandra said.
(Only the headline and picture of this outline may have been reworked by the Trade Standard staff; the remainder of the satisfied is auto-generated from a syndicated feed.)
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