Tata Motors has experienced significant executive departures amid its restructuring plans to split into two listed companies for commercial and passenger vehicles. Key executives have left, some joining competitors while others have taken on roles in different organizations. Tata Motors defends these changes as part of an evolution process, emphasizing the opportunity for fresh talent amid ongoing adjustments as the demerger date draws near.
Tata Motors Ltd has recently experienced a significant turnover of senior executives as it undergoes a substantial restructuring, aimed at dividing its operations into two distinct listed entities for commercial vehicles (CV) and passenger vehicles (PV). The automotive giant has reported at least six executive departures since August, including important team head positions such as Biswaroop Mukherjee, Anurag Mehrotra, and Vinay Pant.
Among those who have departed are Biswaroop Mukherjee, formerly the head of human resources for the CV division; Anurag Mehrotra, who held the vice presidency for international business; and Vinay Pant, the chief marketing officer for passenger vehicles. Others such as Vinay Pathak, Sampada Inamdar, and Devendra Katiyar have also exited, while Ashish Tandon left his position as senior general manager for small commercial vehicles.
Two of these former executives have accepted positions with competitor firms; Anurag Mehrotra now serves as managing director at JSW MG Motor India, while Ashish Tandon has taken on the role of global head of customer excellence at Euler Motors. Biswaroop Mukherjee has transitioned to Aker Solutions as vice president of people and transformation.
Since announcing the demerger in March 2024, Tata Motors has commenced a talent mapping initiative designed to reallocate senior executives within the newly structured companies. The company has engaged Egon Zehnder and consultants such as Boston Consulting Group and McKinsey to assist with this process.
The changes have reportedly led to unhappiness among some executives regarding their new roles, which have been consolidated due to the demerger. A consultant affiliated with Tata Motors disclosed, “After the split was announced, if you were holding a senior post for both businesses, now you will hold for either one. The team size and the portfolio will get reduced. Hence, some of the exits.”
A spokesperson for Tata Motors defended its role designation adjustments, stating, “Transitions are part of the natural evolution of a large organization like Tata Motors that strives to grow and adapt in a dynamic business environment.” The spokesperson added that some of the exits were influenced by personal career decisions, noting that such changes present opportunities for bringing in innovative talent.
As of Thursday, Tata Motors’ shares had increased by 1.33% to ₹689.9 but have seen a decline of over 30% since the announcement of the demerger on March 4, 2024. The official date for the demerger is set for July 1, 2025, with ongoing reorganization of shared business functions already occurring to prepare for the transition.
Employees have begun focusing efforts on either the CV or PV business, while others continue to await directives regarding their future placements. The restructuring follows a logical progression of previous organizational changes, including the appointment of separate CEOs for the CV and PV divisions as early as 2021.
In this ongoing transformation, the CV business will emerge as a separate company, and the PV division—which encompasses the electric vehicle unit and Jaguar Land Rover—will revert to becoming part of the parent company, Tata Motors. The CV division will retain the name Tata Motors Ltd, while the combined PV, EV, and JLR entities will operate under Tata Motors Passenger Vehicles Ltd.
The recent departures of senior executives at Tata Motors coincide with the company’s strategic restructuring plan. As Tata Motors bifurcates its commercial and passenger vehicle operations, several prominent executives have chosen to leave, citing unhappiness with their new designations or opting for competitive opportunities. While Tata Motors attempts to adapt by bringing new talent into the fold, the transformations continue to unfold as the demerger deadline approaches.
Original Source: www.livemint.com
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