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Tata Motors PV could partner with a chinese company

China based automaker Chery has been approached by Tata, to function as their strategic investor and technology partner

Tata’s performance in the country lately has been abysmal and it seems like they are sinking deeper and deeper as the months pass by. Tata requires a few months of strong sales, probably then they could look to recover, failing which, things look grim for Tata. The company brought itself back with their new IMPACT design and has sold quite some units of the Nexon,Tiago and even the recent Altroz. Although, there is a lot more needed to be done and Tata is aiming for it.

Tata is aware of their current predicament and to rectify this, they have taken a few steps, which they believe would help them better. The Ziptron power-train shows the engineering capabilities and the Harrier defines the level of upgrade that Tata is capable of, so why not go for it full on! Shailesh Chandra, who was Tata’s President of EV and Corporate Strategy, became the President of PV (Passenger Vehicles) business, and he took over this position on the first of April.

Furthermore, Tata has transferred their assets, employees and electric vehicle segment into the PV segment. This is not all, Tata intends on bringing a change in the administration and the earnings structure of the company. Operations at Tata are seeing changes, and maybe this is for the best, because a change of such nature could act as a catalyst, and turnaround Tata’s present glum state.

One of the biggest changes is that of Tata partnering up with a new automaker, and whoever the chosen partner is, they would be Tata’s ‘strategic partner’ which means that they would advice and invest in Tata’s products and technology. Rumors have been floating suggesting Tata had shortlisted a few American, Korean and Chinese companies.

From these companies, it seems like Tata has chosen Chery, a China based automaker as their partner. While this partnership has not been official yet, it is most likely that this relationship is in conjunction. It is interesting to note, that Tata holds a joint venture with Chery in China, proving that Tata chose to partner up with a company they have trust with.

With this new relationship, Tata would like to believe that Chery will be able to resurrect the relatively stagnant sales that Tata has been receiving lately. It is entirely possible, that together, they could be launching a new range of Tata vehicles in India, and these new cars could be offering all three power trains, petrol, diesel and electric.

At one point of time, Tata was second to Maruti, as India’s highest selling brand, unfortunately since then, their strategy has gone against them, and they have lost an element of luck too. With this new association, Tata would hope to perform like the old days, and get back onto the pedestal which is currently secured by Maruti. Tata is almost ready with the Gravitas (7 seat version of Harrier) but due to the Covid 19 crisis, it seems like the launch might just be delayed.

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Siddharth Kapila

22 year old guy whose passion for cars has been ever present. I also read and find peace in sketching. (does not mean I sketch well)

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