Tata Motors Business Split To Boost Synergy Across Verticals, Says Chairman

The proposed demerger of Tata Motors Ltd. into two entities will generate synergies across the passenger vehicle and Jaguar Land Rover verticals in areas of battery-powered and autonomous vehicles, said Tata Motors Chairman N Chandrasekaran.

While speaking at the company's 79th annual general meeting on Monday, he also said the demerger will help the companies offer superior experience for customers, better growth prospects for employees and enhance shareholder value.

"This (demerger) will also help secure the considerable synergies across PV, EV and JLR particularly in the areas of EVs, autonomous vehicles, and vehicle software," Chandrasekaran said.

In March, Tata Motors declared the separation of its commercial and passenger vehicle divisions into two distinct listed entities, aiming to more effectively leverage growth opportunities.

As part of the initiative, the commercial vehicle business and its related investments would be housed in one entity, while the passenger vehicle business, including electric vehicles, Jaguar Land Rover and its related investments, will come under a separate listed entity.

Informing shareholders, Chandrasekaran said all three businesses will continue to focus on improving their financial strength and enhancing customer experience.

The strategies they will adopt will get more differentiated, sharpened and refined in line with their market position, brand strength and growth aspirations, Chandrasekaran said.

He said the passenger vehicle vertical will focus on market-beating growth, technology, and brand leadership. The business will continue to invest in products, platforms, electrical & electronic architectures, and vehicle software to remain competitive, he said.

The EV business will focus on deepening penetration through product launches, market development, charging network enhancements and continuing to introduce aspirational product features, he said.

The commercial vehicle business will focus on driving technology and brand leadership to deliver consistent, value accretive growth in the coming years.

Apart from vehicular sales, it will also focus on businesses like spares, digital and smart mobility solutions, which will help reduce the volatility of the vehicle sales business, he added. JLR will continue to double down on its journey to become a premium luxury OEM and continue to invest in products and technologies, Chandrasekaran said.

There is an exciting range of products lined up to be launched over the next three years that needs to be delivered successfully, he said.

The first electric Range Rover launches later this year, and there are further electric vehicle inaugurals lined up in the coming years including the all-electric Jaguar, he said. The British marquee brand shall continue to invest in products, platforms, electrical & electronic architectures and vehicle software, Chandrasekaran said.

(With Inputs From PTI)