NEW DELHI: Homegrown auto major Tata Motors is actively scouting for a partner for its Passenger Vehicle (PV) business to be ready for growth in the next decade. The idea of the automaker to collaborate with a partner comes at a time when the market’s demands have become more and more challenging and many other carmakers forming similar alliances to support electrification to fuel future growth.
“The whole purpose of subsidiarisation is to actively look for a partner because this is a reality for all of us that a collaboration can unleash a bigger potential in the next decade which is going to see significant investments in new technologies and regulations,” Tata Motors President Passenger Vehicles Business Unit (PVBU) Shailesh Chandra was quoted as saying.
Chandra added any kind of support from the government in terms of GST reduction would help the passenger vehicle segment immensely as it would negate some of the price increase in vehicle prices due to the shift to stricter BS-VI emission norms. Earlier this year, Tata’s board had approved to form a separate entity which would house the PV business, including the EV vertical, by transferring relevant assets, IPs and employees directly relatable to the vertical for it to be fully functional on a standalone basis.
The move will help the company to save on costs and share the burden of investing in electric cars.
Two of the country’s leading automakers- Maruti Suzuki and Mahindra & Mahindra have already sealed collaboration with global players Toyota Motor and Ford, respectively, to develop new vehicles, including electric vehicles and take advantage of one another’s expertise and wide reach.
Tata’s hunt for a partner to form a separate entity coincides with the firm’s strong recovery in the domestic market. Its September sales crossed the 21,000-mark for the first time in eight years.