Tata Motors Creates PV Subsidiary; Shailesh Chandra to Head New Entity

Tata Motors Creates PV Subsidiary; Shailesh Chandra to Head New Entity

Tata Motors Hives Off Passenger Vehicle Business into Separate Subsidiary
{data-social}

Tata Motors' board has given in-principle approved to subsidiarise TML's PV business (including EVs) 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

Tata Motors Limited (TML) has taken a call to subsidiarise the company's passenger vehicles (PV) business that includes its electric vehicles (EV) business into a separate subsidiary. The same has been given an in-principal approval by Tata Motors' board. The company said the move is a first step towards securing mutually beneficial strategic alliances for the domestic PV business and help secure its long-term viability. "Tata Motors' board has given in-principle approved to subsidiarise TML's PV business (including EVs) 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 company said in a statement.

However, the company added that it will retain certain shared services and central functions to deliver cost-efficiencies for the entire group. Tata Motors expects the entire transfer process to be completed in the next one year.

The company also announced the appointment of Shailesh Chandra, President, EV & Corporate Strategy as President of the PV business including EV with effect from April 1, 2020. He will be assuming responsibility for the PV business from Mayank Pareek, who is retiring after a five-year stint with the company.