Mumbai, March 27, 2020:
Motors Limited (TML), a leading automaker in India has decided to subsidersise
TML’s passenger vehicle (PV) business including the electric vehicle (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. The TML Board
has in-principle approved this decision.
some shared services and significant functions will be retained at TML to
deliver cost efficiencies for the entire group. The proposed transfer is supposed
to be implemented through a scheme of arrangement, which will be tabled for
approval to the TML Board over the next few weeks.
of the scheme will be subject to regulatory and statutory approvals as
applicable, including approval of shareholders and creditors. It is expected
that the transfer process will be completed by the next year.
vehicle business landscape is seeing rapid transformation in the form of
tightening emission norms, push towards electrification, enhanced disruptions
from autonomous and connected technologies. Additionally, India continues to
remain an attractive market for global original equipment manufacturers (OEMs)
while the aspiration levels of the Indian consumer continue to rise requiring
stepped up investments in contemporary products in a competitive market.
the last few years, TML’s PV business has implemented a strong turnaround and
has earned its right to grow by launching a slew of successful products like
the Tiago, Tigor, Nexon, Hexa, Harrier and most recently the Altroz and Nexon
EV. A fully refreshed BS-VI 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 makes the business ready to realise its potential.
the recent outbreak of COVID-19 virus increases the challenges faced by the
business. In this situation our first priority is to secure the health and
safety of our people while continuing to serve our customers and securing the
viability of our ecosystem. Additionally, in sync with our strategy to ‘Win
Sustainably’ we will take decisive steps to strengthen our business over the
long-term. 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.
with this move, we are also pleased to announce the appointment of Shailesh
Chandra, President EV and Corporate Strategy as President PV business including
EV with effect from April 1, 2020. He will be assuming responsibility for the
PV business from Mayank Pareek. Shailesh’s appointment at the start of the new
financial year gives him the opportunity to shape the organisation as we ready
it to operate as a subsidiary once the necessary approvals are in place.
Shailesh and Mayank will work on transition over the next few weeks and Mayank
will be superannuating from Tata Motors at the end of February 2021. We would
like to thank Mayank for his contributions in getting TML PV business back on
track to ‘Win Sustainably’ and wish him well for the future.