Tata Motors has reportedly said that it is actively on the lookout for a partner to supplement its passenger vehicle business as it prepares for growth in the coming decade with the company likely to see significant investments in new technologies and guidelines, reports quote a a top company official as saying.
This comes even as the automobile manufacturer is looking to hive off its passenger vehicle (PV) business as a standalone unit. The auto major’s board had earlier this year agreed to form a separate entity for its PV business encompassing the EV vertical as well, by shifting relevant assets and employees.
"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 told PTI in an interview.
Chandra added that the collaboration would also assist in bringing down product lifecycles and give a fillip to new product launch intensity.
All of this requires huge investments for which agility is also important, which the company is actively looking into, Chandra said.
"There are no specific timelines… as far as subsidiarisation process is concerned, converting the business into a separate legal entity, we would like to accelerate in a year and as far as a partner is concerned it is an active work which we will continue to work on,” Chandra reportedly said.
Despite the lockdown, the company has registered double-digit growth in the PV segment during the first half of this fiscal, Chandra said.
Tata Motors had in August denied reports that it was looking to sell 49% stake in its passenger vehicle business, calling them unsubstantiated and unverified.