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Old 31st March 2020, 16:05   #31
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

I personally think this is a great decision for sustainability and accountability. Accountability in the sense that the team in the PV business feels the heat of continuously losing money and knowing that they will not always be subsidized by other money making divisions. Hopefully this also comes with a greater autonomy for them so that they can make fast and relevant decisions related to their PV business.


From sustainability perspective, this is a first step towards looking for joint venture partners. As everyone knows, PV business is going through a massive transformation. Electrification and autonomous driving technologies will need billions of dollars in risky investments. JV is the only prudent way to survive and flourish in such scenario. This seems to be a step in that direction.

Last edited by Theyota : 31st March 2020 at 16:15. Reason: f
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Old 31st March 2020, 19:37   #32
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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
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!
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Originally Posted by Shashwat.75 View Post
I feel they should try changing their logo to 'TAMO' - as seen on their RACEMO concept. It'll look awesome!
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Originally Posted by DeKay View Post
That said, the tri-arrow seen on the 2020 Nexon's seats would be a dapper logo for the PV unit, no?
Interesting! Now that struck a chord- was wondering what is the recent significance of the Tri-Arrow. It was TAMO -

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Tata Motors to hive off passenger car business into a separate subsidiary-screenshot-20200331-8.07.49-pm.png

And the same Tri-Arrow now on the Nexon (seats, dashboard - its everywhere the eye can't miss!), and also its variations in other TATA Motors cars now in 2020, as mentioned in my previous post. Could TAMO be the real deal?

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

Last edited by CrAzY dRiVeR : 31st March 2020 at 20:32. Reason: Added image.
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Old 1st April 2020, 08:52   #33
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

Typically, such a news should make waves at stock prices. However, prior to this news and/or covid-19 situation, Tata motors was already a beaten down stock, not much has changed in stock prices of Tata motors, just a marginal improvement since last 1 week.
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Old 1st April 2020, 09:34   #34
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

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Just make sure the new name is not TaMo
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Originally Posted by CrAzY dRiVeR View Post
Could TAMO be the real deal?
God no!

We all know that Tata throws some lazy antics time to time, but naming it TaMo will be heights.
TaMo brand will put the weight of entire Tata Motors legacy on the new subsidiary.
Everytime I have heard the word TaMo, I can think of nothing else but Tata Motors. They might just end up achieving their internal reorganization agenda, but waste an opportunity for a marketing refresh and brand rebuild.

To me, it's like Maruti launching the Nexa channel and calling it MaSu
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Old 1st April 2020, 10:09   #35
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

On TaMo, First came this -
On Feb,2017
https://economictimes.indiatimes.com...7.cms?from=mdr
Then this
https://www.thehindubusinessline.com...cle9825952.ece

Just noticed, CNBC TV18 stock ticker shows TaMo for Tata Motors

Last edited by _chikku : 1st April 2020 at 10:10.
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Old 1st April 2020, 10:38   #36
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

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Originally Posted by sukiwa View Post
Typically, such a news should make waves at stock prices. However, prior to this news and/or covid-19 situation, Tata motors was already a beaten down stock, not much has changed in stock prices of Tata motors, just a marginal improvement since last 1 week.
With almost two more weeks of lockdown left, and a big uncertainty over when the markets would resume normalcy, even for JLR's Chinese sales - TATA Motors shares are unlikely to recover soon, regardless of any new announcement. Just IMHO. If at all an announcement happens, I expect the shares to gain good momentum once the market recovers from Corona.

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To me, it's like Maruti launching the Nexa channel and calling it MaSu
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Old 3rd April 2020, 19:25   #37
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

Seems to be a good decision by Tata Motors. We have to watch & wait for the outcome which seems to be fair distance away due to Corona issue. There are other ways too. Many big business conglomerates such as L&T which has interest in many fields does this work by adopting two fold approach. First, By creating separate companies who have altogether different businesses such as L&T Finance and Second, creating BUs(Business Units) inside L&T brand itself. These BUs behave like separate companies internally so as to have more focus and more freedom to run them freely.L&T reports financial results of all these specific segments separately and the combined performance of all BUs adds up for overall statistics of L&T group. They have been fairly successful by this approach.

Lets see how Tata Motors reshapes after this. Hope for good.
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Old 16th June 2020, 15:03   #38
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

Time is appropriate to look for partners for passenger vehicle business, says P B Balaji, Tata Motors CFO.
  • The company will move the company law tribunal in the coming days to finalize the process of separating the PV business.
  • The company's board had given in-principle approval in March to move the passenger vehicle business including electric vehicles into a separate subsidiary and look for partners.
  • Tata Motors took a write off of Rs 1470 crore on its car business in Q4 of FY-20 and has set itself a target of attaining positive cash flow by FY-23.
  • Balaji said, their car factories have reached 50% capacity utilization post resumption of manufacturing after lockdown was lifted and there may be a positive surprise in the future for PV business on account of demand revival.
Quote:
Everyone in the automotive industry would want to look at partnering to share costs because the problems created by the pandemic were much larger than any one company could handle, said PB Balaji, chief financial officer of Tata Motors Group, during the company's earnings call on Monday.

“All of us are in the same space (market). The right way is to optimise business, by sharing engines, platforms etc and this is the right time to re-think and re-asses the business for the future,” explained Balaji.

The CFO confirmed that the company has been engaged in talks with possible suitors however there is nothing to be announced at this point in time.
Quote:
The company is focusing on three key areas for the passenger vehicles business, Balaji said. These include improving retail sales, stepping up consumer engagement, and reducing costs, and becoming cash-positive by FY23.

“We believe this business is now ready to move in the right direction," Balaji said. "This is the first step towards inducting a strategic partner at an appropriate time. We talk to a lot of OEMs (to explore partnerships). But the focus of 99.9% organization is on the three points.”
Souce
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Old 17th June 2020, 18:55   #39
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

After record loss, Tata Motors to scout for partner in car business.

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The company, which is in the process of spinning off its domestic passenger vehicle business into a wholly-owned subsidiary, also said it was looking for a strategic partner and was in talks with automakers for the same. The company took a write-down of Rs 2,500 crore for the passenger vehicle business.

Link

Last edited by volkman10 : 17th June 2020 at 18:56.
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Old 17th June 2020, 20:05   #40
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

The utlimate irony will be if Tata sells a stake to a Chinese company.
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Old 30th January 2021, 19:00   #41
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

In the latest, Tata Motors is expecting the hive-off of passenger vehicles business by June 2021. The search for a partner is ongoing.

https://economictimes.indiatimes.com...w/80588826.cms

Quote:
The current mental time plan we are working (is) maybe it may happen sometime in May-June. We are preparing for that and we will be ready for the transition as and when we get the approval
Quote:
(The) partnership is about opportunity for tomorrow. It is not about imperative for today. Therefore, when we look at a partner, it is more about how can we drive capital productivity by sharing things that we have already invested in or fast-forward any other technology that could be coming in
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Old 30th January 2021, 20:28   #42
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

Logically they should partner with Honda for long term future. But Honda is averse to partnerships and sharing technology unlike Nissan, Mitsubishi, Toyota and Suzuki.

Honda's EV tech could be of help if Tata needs a partner to share electrification R&D costs.
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Old 30th January 2021, 23:44   #43
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

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Originally Posted by Nithesh_M View Post
Logically they should partner with Honda for long term future. But Honda is averse to partnerships and sharing technology unlike Nissan, Mitsubishi, Toyota and Suzuki.

Honda's EV tech could be of help if Tata needs a partner to share electrification R&D costs.
In the 80's, Tata Motors, then known as TELCO, had come very, very, very close to a tech JV with Honda. So much so that Honda had agreed to let TML build the Accord in India, under license. Honda had even transferred all technical specifications and drawings to TML. Unfortunately, political machinations, due to the impending entry of Maruti Udyog, put an end to this dream project & successfully nipped it in the bud.

Even now, TML & Honda can benefit. Tata can pick up Honda's gasoline engine technology and both can use Tata's AMP with different "top hats" for a whole range of small vehicles.
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Old 8th March 2021, 15:10   #44
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

Tata Motors on Monday said its shareholders have approved hiving off its passenger vehicles business into a separate entity.

The company management had stated that it expects the process of hiving off its domestic passenger vehicles (PV) business to be completed around May-June this year, although it has not yet taken a call on a potential partner for the business.

Quote:
The company had said that its passenger vehicles business has been valued at ₹9,417 crore.

In a regulatory filing, Tata Motors said total 2,15,41,38,392 votes were polled out of which 2,15,32,39,294 were in favour of the resolution, translating into 99.958 per cent of the total votes, while 8,99,098 votes (0.042 per cent) were against.

Source
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Old 27th August 2021, 21:23   #45
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Re: Tata Motors to hive off passenger car business into a separate subsidiary

Tata Motors gets National Company Law Tribunal (NCLT) nod to hive off PV biz to separate entity.

Quote:
Auto major Tata Motors (TML) on Friday said it has received approval of the National Company Law Tribunal (NCLT) Mumbai bench to hive off its passenger vehicles (PV) business unit into a separate entity.


Quote:
Last year, Tata Motors had announced that it would turn its domestic PV business unit into a separate entity and seek a strategic partnership in order to help the unit secure its long-term viability.

Tata Motors has maintained that as part of an overall business reorganisation plan and in order to provide for the optimum running, growth and development of the PV undertaking and its interests, it was necessary to realign the PV business.

Link

Last edited by volkman10 : 27th August 2021 at 21:25.
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