Tata Motors Executive Director Girish Wagh said on Sunday that the proposed demerger of the existing automotive business into two listed entities will help the commercial vehicle vertical become more agile and capitalise on the opportunities available globally.
In a message to shareholders in the auto major’s Annual Report for 2023-24, Wagh said, “The proposed demerger will help us improve focus and make us more agile to capitalise on opportunities in the CV market globally.” Girish Wagh heads the company’s commercial vehicle business.
“Looking ahead, I expect FY25 to be yet another exciting year for the CV industry, given the favourable macroeconomic context, especially in the domestic market,” said Wagh on sales outlook as quoted by PTI.
“Our focus will be to create a world-class company operating in the CV space, providing superior experience to our customers, better growth prospects for our employees, and enhanced value for our shareholders,” he said, adding that Tata Motors‘ CV business has been delivering strong operational and financial performance.
This came after Tata Motors announced the demerger of its passenger and commercial vehicle segments into two separate listed entities for better capitalisation on growth opportunities.
The commercial vehicle business and its related investments would come under one entity, while the passenger vehicle segment — electronic vehicles (EVs), Jaguar Land Rover (JLR), and its related investments — will form a separate listed entity.
On the other hand, Tata Motors Passenger Vehicle MD Shailesh Chandra expects the PV industry to moderate towards a long-term secular growth rate after three consecutive years of strong growth, he told stakeholders as quoted by PTI.
Chandra noted that trends seen in FY24 are expected to be accentuated by rising customer preference for safer, smarter, and greener vehicles powered by CNG and batteries. SUVs will continue to dominate the landscape with more options for customers to choose from, he added.
Tata Motors stated that the demerger will help secure synergies across PV, EV, and JLR, particularly in the areas of EVs, autonomous vehicles, and vehicle software.
(With PTI inputs)
You are on Mint! India’s #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!
Download The Mint News App to get Daily Market Updates & Live Business News.
Published: 02 Jun 2024, 11:59 AM IST