The board of Tata Motors Ltd. approved a plan to spin off the Indian automaker's passenger vehicle business, including electric vehicles, into a separate subsidiary through a scheme of arrangement.
The business' relevant assets, IPs and employees will transfer, but Tata Motors will retain certain shared services and central functions to deliver cost efficiencies across the group.
The scheme of arrangement will be subject to board approval over the next few weeks, while implementation will be subject to approval by shareholders, creditors and regulators. The transfer process is expected to be completed in one year.
Additionally, Shailesh Chandra was appointed president of the passenger vehicle business, including electric vehicles, effective April 1. Chandra, currently president of electric vehicles and corporate strategy, will succeed Mayank Pareek, who will retire from the company at the end of February 2021.