Pune: Tata Motors Chairman N Chandrasekaran on Monday said that the proposed demerger of its existing automotive businesses into two listed entities will help in securing synergies across its passenger vehicles and Jaguar Land Rover verticals in areas of EVs and autonomous vehicles.
He told shareholders at the automaker’s 79th AGM that the initiative will lead each company to deliver a superior experience for customers, better growth prospects for employees and enhanced value for shareholders.
"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 this year, Tata Motors announced the demerger of its commercial and passenger vehicle segments into two separate listed entities to better capitalise on growth opportunities.
As part of the initiative, the commercial vehicle (CV) 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.
Chandrasekaran told shareholders that going ahead 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, he noted.
Elaborating specifically on the PV business, he said that the 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, the chairman said.
He said the EV business will focus on deepening penetration through multiple product launches, focus on market development, charging network enhancements and continuing to introduce aspirational product features.
The CV business will focus on driving technology and brand leadership to deliver consistent, value accretive growth in the coming years, Chandrasekaran said.
Apart from vehicular sales, it will also focus on vehicle parc-linked businesses like spares, digital and smart mobility solutions which will help reduce the volatility of the vehicle sales business, he pointed out.
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.
He said there is an exciting range of products lined up to be launched over the next three years that needs to be delivered successfully.
The first electric Range Rover launches later this year, and there are further EVs 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 to provide a world class customer experience, Chandrasekaran said.
