Tata Motors’ Bold Move: Splitting Business to Boost Global Opportunities in Commercial Vehicle Sector

Tata Motors is planning to split its automotive business into two separate entities, one for commercial vehicles and another for passenger vehicles. Girish Wagh, Executive Director of Tata Motors, believes this move will make their commercial vehicle vertical more adaptable and allow them to seize opportunities worldwide. The split will create one entity for commercial vehicles and another for passenger vehicles, including electric vehicles and Jaguar Land Rover.

Growth Prospects

Wagh mentioned in the company’s Annual Report for 2023-24 that this demerger will enhance focus and agility in the commercial vehicle market globally. The company anticipates synergies across passenger vehicles, electric vehicles, and Jaguar Land Rover, especially in areas like electric vehicles, autonomous vehicles, and vehicle software.

Regarding sales, Wagh expressed optimism for the upcoming fiscal year, citing favorable macroeconomic conditions, particularly in the domestic market. He highlighted the strong performance of Tata Motors’ commercial vehicle business, aiming to create a top-notch company in the commercial vehicle sector.

Electric Vehicle Expansion

Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicle division, expects the passenger vehicle industry to stabilize after three years of significant growth. He noted a growing customer preference for safer, smarter, and greener vehicles, especially those powered by CNG and batteries, with SUVs remaining popular.

Chandra emphasized Tata Motors’ commitment to shaping the electric vehicle market through various initiatives to expand market reach and increase EV adoption. He also mentioned plans for new vehicle launches to sustain growth momentum.