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Old 30th March 2020, 10:31   #16
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

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Originally Posted by evoker View Post
Does this mean that the brand will have a new name and logo?
Not necessarily. For one, their current logo is quite fresh & looks awesome. Second, you'll see most manufacturers (e.g. VW, Mercedes) using pretty much the same logo across cars & commercial vehicles. Volvo cars & trucks use the same logo, even though their owners are different.
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Old 30th March 2020, 13:19   #17
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

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Not necessarily. For one, their current logo is quite fresh & looks awesome. .
I personally think that the current Tata logo is not great.

But I really like the typeface they use for the "TATA" brand and I think they should go with that as the logo itself or design a fresh one.

It's not even a matter of looks. The current logo carries with it a lot of baggage and unpleasant memories from the 2000s which unfortunately is something that a lot of people still associate with the brand. It doesn't remind one of the glorious years and great products Tata once created. For car enthusiasts like us who knows the in and outs of car companies and religiously studies the history of all the brands it might not be the case, but for an average car buyer for whom a car is NOT more than a sum of its parts, brand image Carries a lot of weight.

Brand logos are more about the feeling it brings to a person's mind when they see it. There are lot of ugly brands logos that we look at with lots of respect because of the legacy of iconic cars and fame associated with it.
Tata wasn't able to build such a legacy around it's current logo even though they had the successful Indica. The Safari was almost a brand of it's own and carries weight even now
But we all do remember the old Tata motors logo and the amazing cars(SUVs) and even trucks they made even now with so much love.

Alas, the current Tata Motors logo doesn't ooze that charisma even though their new cars do.
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Old 30th March 2020, 14:02   #18
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

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Originally Posted by SmartCat View Post
The quoted part is the reason given by Tata Motors for the move. Apparently, they think delinking Commercial Vehicle business from Passenger Vehicle business will somehow help them with tie-ups with other major car manufacturers. I don't think it makes much sense.
Would you know what impact this will have on existing Motors shareholders.
Are they just owners of the CV business now?

Or will PV and CV be owned by the same umbrella Tata Motors?

Last edited by SmartCat : 30th March 2020 at 14:07. Reason: Fixed Quote
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Old 30th March 2020, 14:06   #19
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

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Would you know what impact this will have on Tata Motors shareholders? Are they just owners of the CV business now? Or with PV and CV be owned by the same umbrella Tata Motors?
As of now, Tata Motors owns 100% of both PV and CV business. But this move (converting into subsidiary) will allow Tata Motors to sell 20% (for example) of Passenger Vehicle business to a major global car manufacturer like VW (for example).
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Old 30th March 2020, 14:18   #20
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

This is what the company I work has done. They will spin off the unit which they want to sell into a separate entity. Split shares as per ratio and sell off to a good bidder or make a JV. TATA may sell it off to a Chinese manufacturer.

Last edited by BlackPearl : 30th March 2020 at 20:58. Reason: Typo. Thanks
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Old 30th March 2020, 14:27   #21
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

A lot will depend on the reporting structure and board composition of the subsidiary. Effective control from the parent is different from overreaching requirements to abide by corporate strategy. I see this as the biggest challenge for global companies who spin off subsidiaries. They want to show a separate line of business with independent control, but they just don't want to relinquish control and management. Effectively, if not managed properly, the subsidiary stays a "yes man" to the overall group and doesn't get it's fair share of say in things.

This could be a golden chance for them to rename their PV segment into something that is not Tata. Like a broken record, I keep saying this but I guess I may be wrong in thinking a whole set of people don't buy Tata because it's associated with CV and taxi segment. I understand the pride of the nation etc. but it just doesn't seem to take them where they potentially can be.

One other thing that stood out is why the slump sale now? Hopefully, they are not going down the path of resource optimization i.e. laying off employees. This would be terrible press for them.
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Old 30th March 2020, 14:59   #22
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

Quote:
Originally Posted by evoker View Post
Does this mean that the brand will have a new name and logo?
Quote:
Originally Posted by GTO View Post
Not necessarily. For one, their current logo is quite fresh & looks awesome. Second, you'll see most manufacturers (e.g. VW, Mercedes) using pretty much the same logo across cars & commercial vehicles. Volvo cars & trucks use the same logo, even though their owners are different.
BUT - I somehow find it too much of a coincidence that all the recently launched TATA cars suddenly seem to have found a huge liking for the Tri-Arrow logo!

I have been wondering how this design motif gained so much prominence in 2020. Believe this logo has significance in their old Benz partnership origins, but nothing much recently so as to gain prominence now - but reading of this news now makes me suspect if a logo change is due?

Nexon -

Tata Motors to hive off passenger car business into a separate subsidiary-03.jpg

Tata Motors to hive off passenger car business into a separate subsidiary-tryarrowseat01.jpg

Harrier -

Tata Motors to hive off passenger car business into a separate subsidiary-6_speed_manual_transmission.png

Tiago / Tigor -

Tata Motors to hive off passenger car business into a separate subsidiary-sharpvisorlikefrontgrille.jpg

Last edited by CrAzY dRiVeR : 30th March 2020 at 15:05.
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Old 30th March 2020, 15:40   #23
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

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Originally Posted by CrAzY dRiVeR View Post
BTATA cars suddenly seem to have found a huge liking for the Tri-Arrow logo!
This may relate to their fondness for the 'hexagon' element in their car designs - starting with Hexa - especially in the bumper plastic area. The Tri arrow, then is the highlighted overlapping sides when three hexagons are joined.
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Old 30th March 2020, 15:44   #24
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

Personally I welcome the move.

Passenger cars has been the weaker siblings of between the two. This will infact enable them to break the cv mindset and focus on proper cars. This actually is the learning from m&m where the tractor division is separate from the auto division in terms of manufacturing, sales atleast. It has helped both the divisions to fly higher and I don't see why Tata can't capitalise on this. If like mahindra Tatas are able to serve a cv ecosystem the cv business will benfirt immensely.
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Old 30th March 2020, 16:30   #25
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

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Originally Posted by GTO View Post
Not necessarily. For one, their current logo is quite fresh & looks awesome. Second, you'll see most manufacturers (e.g. VW, Mercedes) using pretty much the same logo across cars & commercial vehicles. Volvo cars & trucks use the same logo, even though their owners are different.
I personally feel, the Tata logo is one of the major reason for their poor market performance. There is no ingenuity in its design, looks like copy of Toyota's logo, and is associated with Tata's of old (5-10 yrs) with severe quality issues. I for one cannot imagine myself sitting in front of a steering wheel carrying that design. Seriously, I keep Tata cars off my radar just because of this particular reason. How cool would a thick font TATA logo be with some tilt, or just a thick T, with a little tilt. I feel they should change it, its too old fashioned, and reminds people of a dark past.
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Old 30th March 2020, 20:32   #26
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

Tata motors has been oozing a lot of positive energy over past couple of years. I think branching out into a different company, with a different brand would do a lot of justice to what they have achieved.
I also think that JLR acquisition has had a profound impact on Tata's PV strategy. So a new brand comprising of Tata Motor's new found freshness and JLR's pedigree should appeal to the customers. Might help in shaking off the residues of taxi and CV perception it runs in the market right now.

Just make sure the new name is not TaMo
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Old 30th March 2020, 20:55   #27
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

Has there been any word / indication of including the SPV unit (Tata-Jayem) as one of the units under this new PV subsidiary ? Hope they do it, and I think it will be easier to maintain and grow this under a separate PV subsidiary.
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Old 30th March 2020, 21:39   #28
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

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Originally Posted by evoker View Post
Does this mean that the brand will have a new name and logo?
This kind of reorganization target three distinct groups

1. The internal organization to redefine roles and responsibilities, for resource allocation and re-setting priorities.

2. Vendors, Customer and other external stakeholders to reposition the segment-specific value proposition of the two new entities.

3. Investors \ Share-holders need to be made aware of the roadmap and strategies of the two distinct entities.

A distinct brand identity and message helps stakeholders relate to the mission and strategic direction of each BU. A branding exercise may well be part of such a reorganization.
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Old 31st March 2020, 15:34   #29
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

I feel they should try changing their logo to 'TAMO' - as seen on their RACEMO concept. It'll look awesome!

Attaching a picture for reference
Attached Thumbnails
Tata Motors to hive off passenger car business into a separate subsidiary-images-11.jpeg  

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Old 31st March 2020, 16:03   #30
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

Quote:
Originally Posted by CrAzY dRiVeR View Post
I have been wondering how this design motif gained so much prominence in 2020. Believe this logo has significance in their old Benz partnership origins, but nothing much recently so as to gain prominence now - but reading of this news now makes me suspect if a logo change is due?
Quote:
Originally Posted by rrsteer View Post
This may relate to their fondness for the 'hexagon' element in their car designs - starting with Hexa - especially in the bumper plastic area. The Tri arrow, then is the highlighted overlapping sides when three hexagons are joined.
Pratap Bose said in one of the videos TML did during the Auto Expo that the Tri Arrow actually symbolizes their three business units - PV, CV and (I guess) EV(?)

That said, the tri-arrow seen on the 2020 Nexon's seats would be a dapper logo for the PV unit, no?
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