Home Car News Tata Motors may partner with a Chinese company soon

Tata Motors may partner with a Chinese company soon

Tata Motors recently announced that it would be transferring its assets, IPs and employees directly to its newly subsidiarised passenger vehicle business

Tata Motors could partner with a Chinese automotive group after converting its PV business into a subsidiary. As per a report by Economic Times, Tata Motors has already approached China-based Chery Automobile to act as a ‘strategic investor and technology partner’. It was only recently that Shailesh Chandra was appointed as President, PV Business, at Tata Motors Ltd (TML). He assumed his new position from Mayank Pareek who would be superannuating from the Indian automotive group in February 2021.

In parallel to the process making the PV business a subsidiary, TML plans to introduce a new administration and payroll structure. Appointing Shailesh Chandra as the new President of PV Business from his previous position as President of EV and Corporate Strategy, was just one part of the restructuring. The company has also appointed Sudeep Bhalla as the new Head of Corporate Communications.

Coming to the new partnership, Tata Motors had apparently considered certain American and Korean manufacturers initially. Furthermore, Chinese automakers such as Changan and Geely were also shortlisted. However, the company has chosen Chery as its new business partner even though the news has not been official yet.

Chery Tiggo 5X
Tata Blackbird could be based on Chery Tiggo 5X

Tata-owned Jaguar Land Rover has already signed up for a joint venture with Chery Automobile for the Chinese market. Either company has a 50:50 partnership and JLR products in China are produced at Chery’s manufacturing facility in Changshu.

As per reports, the new ‘strategic partner’ would assist in cost-cutting while also investing in the brand’s future EV projects and related technology. Another source revealed that Tata Motors and Chery would be working on a range of products for India as well as international markets. It is worth noting that Tata’s upcoming Blackbird mid-size SUV shares its platform with the Chery Tiggo 5X crossover.

In India, Tata Motors has been following an aggressive product strategy for a few years. The ongoing COVID-19 lockdown has created confusions and struggles in automotive businesses across the world. In fact, Tata Motors faced a massive sales decline of 84% in March 2020 due to the Indian government’s COVID-19 lockdown protocol.

Tata Motors is almost ready to launch the much-awaited Gravitas SUV (Tata Harrier’s 7-seater avatar). The company is also working on a new subcompact SUV (or crossover), internally dubbed as HBX. Both products were showcased at Auto Expo 2020 alongside a range of passenger and commercial vehicles updated to BS6 emission norms.

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