Sunday, April 10, 2011

Tata Motors rejigs senior management; home-grown executives get key positions


MUMBAI: Tata Motors has reorganised the senior management of the passenger vehicles business by elevating home-grown executives to key roles to boost performance after a spate of business heads and regional managers quit to join rival firms in a booming automobile market . 

India's largest automobile company has recently promoted used car business (Tata Assured) head Rajesh Nair as the chief of utility vehicles business, replacing SG Saxena who left after 25 years. AK Sinha, an old-timer with the passenger vehicles business, is the new head of the Fiat product group. 

Deependra Sharma from the commercial vehicle division has taken over as the new regional manger west (2) zone. He comes in place of Girish Janardhan. Gautam Mukherjee, regional manager, east zone, who quit to join Toyota, has been replaced by Priyesh Kumar from Hyundai Motors. Tata Motors has two regional managers for the west, south and north zones. Dipankar Tiwari, continues as the west (1) region head. 

The reorganisation follows shifting of top-level executives from the profitable commercial vehicles business to the passenger vehicles business in 2010. 

R Ramakrishnan, vice-president (sales & marketing) of commercial vehicle division, moved into the role of vice-president (commercial) passenger cars last year, reporting to PM Telang, managing director of the company's India operations. Niraj Srivastava, regional manager (west) of the commercial vehicle business, is the new head for the car product group, reporting to Ramakrishnan. Srivastava replaced Nitin Seth who moved to Ashok Leyland. 

"Tata Motors has the resources, depth of talent within the company and will continue to tap them. It looks at talent from within and outside, if required. With new responsibilities required to be resourced, the company has redeployed senior managers," said a senior industry official close to the development. Tata Motors spokesperson did not reply to an e-mail query on the subject. 

Tata Motors' commercial vehicles business contributes to more than 70% of the turnover with the new launches such as the Prima range. There is no fierce competition in the commercial vehicle business and the company is in a comfort zone with a largest market share of 65%. 

The case has been different for passenger vehicle business which has been seeing stiff competition. In FY06, Tata Motors passenger car business had a market share of 17.1% which fell to 13% in FY11. In the utility vehicle business, the company's market share fell from 19.5% in 2006 to 13.6% in FY11. Companies such as Maruti Suzuki, saw its market share fall from 51.7% in FY06 to 48.7% in FY11, signaling market pressure, said analysts. 

Tata Motors sold over a million vehicles for the year ended March 31, 2011, which include Daewoo, Jaguar Land Rover, commercial vehicles and passenger vehicles. Passenger car business has been devoid of a head ever since Rajiv Dube resigned as the president in 2010. Dube's role was split into two: Girish Wagh took charge of production while Ramakrisnan became the marketing head.

DEEPAK KUMAR
PGDM

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