New Delhi: Girish Wagh, Executive Director at Tata Motors, expressed confidence that the proposed demerger of the automotive business into two listed entities will significantly bolster the commercial vehicle (CV) segment’s competitiveness on a global scale. Wagh emphasized that this strategic move will enhance focus and agility, enabling the CV division to seize opportunities more effectively across international markets.
In the Annual Report for 2023-24, Wagh conveyed his optimism about the outlook for FY25, particularly highlighting the favorable macroeconomic conditions in the domestic market. He underscored the company’s commitment to establishing a world-class presence in the CV sector, prioritizing customer satisfaction, employee growth, and shareholder value. Wagh also praised the robust operational and financial performance of Tata Motors’ CV business.
The decision to split the passenger and commercial vehicle segments into separate entities aims to optimize growth prospects. The CV business, alongside related investments, will form one entity, while the passenger vehicle segment, encompassing electronic vehicles (EVs), Jaguar Land Rover (JLR), and associated investments, will constitute another.
Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles, projected a shift towards a sustainable long-term growth trajectory in the passenger vehicle industry after a period of strong expansion. He noted a growing consumer preference for safer, smarter, and environmentally friendly vehicles, particularly those powered by CNG and batteries, with SUVs continuing to dominate the market.
Tata Motors anticipates synergistic benefits across the passenger vehicle, EV, and JLR segments, particularly in areas such as electric vehicles, autonomous driving technology, and vehicle software, through the demerger.
