Tata Motors To Join Hands With a Chinese Partner

Of late, Tata Motors has been making plenty of efforts to improve its brand value as well as market share in the personal vehicle space. In line with this, the carmaker will soon form a strategic alliance with the Chinese carmaker Chery. In the JV, Tata Motors will be the major controller, while the Chery will be a technology partner and strategic investor for the Indian carmaker.  The Chinese partner will help Tata Motors in saving costs of developments of future models by sharing technology. The prime focus of the alliance would be on the electric drivetrain and future advancements in the IC engines.

Chery is known for its Tiggo range of SUVs in China.

The Chery and Tata Motors’ alliance cannot be said as something completely new. The JLR brand owned by the carmaker is already in a JV with the Chery in China. The Indian carmaker has not confirmed of the alliance yet as it is even analyzing offers from other Chinese manufacturers such as Changan and Geely. However, in all likelihood, it will be Chery that will soon form the JV with the homegrown carmaker.

Also, the Indian manufacturer has recently announced that its personal vehicles branch will now be a different entity from the commercial vehicle division. With this move, the board of directors at Tata Motors will be finding out new ways to subsidize the personal vehicle business and bring in new investment for the development of more electric vehicles. The bifurcation of personal vehicle business from the CV business will have the future employees of PV division of Tata Motors on a new payroll and administration structure.

Chery Tiggo 4 based SUV is expected to be the first product from this Tata-Chery JV.

For the new passenger vehicle division, Mr. Shailesh Chandra has been appointed as the President, while Mr. Sudeep Bhalla has been appointed as the new Head of Corporate Communications. Chandra will take over Mr. Mayank Pareek’s position as the latter will soon retire from his current role of President of passenger vehicle division. These new decisions have come in to effect from April 1, 2020.