Shailesh Chandra, current President of EV and Corporate Strategy at Tata Motors, will take charge as President of PV business (including EVs) from 1 April 2020
Tata Motors Ltd (TML) has decided to subsidiarize its PV (passenger vehicle) business by transferring assets, IPs and employees directly to it. This includes Tata Motors’ electric vehicle business as well. Except for certain shared services and central functions, the transfer will commence through a scheme of arrangement in a matter of weeks. TML expects the entire process to be finished in a year’s time.
Along with this decision, TML has also appointed Shailesh Chandra as President of PV business with effect from 1 April 2020. He was previously working as President of EV and Corporate Strategy at Tata Motors. Shailesh will assume his new position from Mayank Pareek who shall be superannuating (retiring with pension) from Tata Motors in February 2021.
There were reports last month, which claimed Mayank Pareek is likely to end his stint at Tata Motors. Soon after this, Tata Motors sent a press statement – “Tata Motors would like to clarify that Mr. Mayank Pareek, President, PVBU, has not resigned from the company.”
Tata Motors states that India’s passenger vehicle market is going through a rapid transformation. This includes stringent emission norms (BS6), government’s push towards electric mobility and development of autonomous and connected technologies. Furthermore, India continues to be a potential market for global OEMs while Indian consumers’ expectations from a new product are rising. Owing to this, new names and existing players are looking forward to making more investments to stay ahead of their respective competitors.
Tata Motors has been following an aggressive product strategy for quite a few years and has witnessed success with most of its new BS6 products (Tiago, Tigor, Nexon, Harrier and Altroz). At Auto Expo 2020 in early-February, Tata Motors had also showcased its upcoming plans for India through concepts and production-ready models. Alongside, ample importance is being given to product design philosophy and passenger safety as well.
India’s automotive sector is currently going through a crisis that has also affected major businesses worldwide. COVID-19 virus outbreak has put India in a state of lockdown. Small-scale and large-scale businesses (including auto dealers) are struggling to stay afloat amidst current state of affairs. With daily losses accounting to thousands of crore rupees in automotive business alone, FADA (Federation of Automotive Dealers Associations) has stepped up to seek a solution that mainly includes a deadline extension to update to BS6 emission norms.
Many OEMs have temporarily shut down their manufacturing facilities as a preventive measure. In this regard, Tata Motors has drastically cut down its operations for a brief period to protect its employees. Meanwhile, TML shares that it is going ahead with a well-planned long-term strategy to ‘Win Sustainably’.