In the recent past, Tata Motors segregated its Passenger Vehicle segment which also includes the Electric Vehicle venture into a subsidiary which separates it from the dominating Commercial Vehicle business. Now, sources report that the brand is looking for a partner for its passenger vehicle business to boost its growth in the next decade. The collaboration is likely to see a huge amount of investment going into new technology and regulation.
The main reason for the subsidiarisation is likely to be a collaboration with another partner that can lead to larger benefits and potential for the company(s). With collaboration also comes the reduced product life cycles and the benefit of enhancing the intensity of launching new products in the market. Sources also indicate that the brand will be building an ecosystem for both the parties to benefit by creating assets and capabilities. Furthermore, all of this would require large amounts on investment along with agility.
In the Passenger Vehicle segment, Tata Motors has shown double-digit growth during the first half of the Fiscal resulting in a market share of 7.9 per cent in the passenger vehicle segment. The passenger vehicle segment also witnessed an 18% growth revival in the July-September quarter this year. A big factor for growth has been the pent-up demand which initially was for the BS6 products and later associated with the COVID induced lockdown. The demand is also likely to sustain during the pandemic period due to people preferring personal mobility solution instead of public transport. The brand is also expected to see growth due to the pent-up demand, personal mobility needs and the festive season.
In the domestic & international market, for Q2 FY21, Tata Motors recorded sales of 1,10,379 vehicles, compared to 1,05,031 units during Q2 FY20. Total domestic sales in September 2020 stood at 44,444 units when compared to September 2019 stood at 32,376 units.