Tata Motors Gears Up for Commercial Vehicle Division Split

Key Highlights:

• Tata Motors is boosting leadership development as it prepares to split its commercial vehicle unit.
• A global consultancy and IIM Ahmedabad are helping enhance leadership capabilities.
• Executives are being exposed to startup ecosystems through Shark Tank-style programs.
• The company is embracing Industry 4.0 technologies for digital transformation.
• The new structure will have eight independent business units focused on value creation.

Tata Motors is stepping up its leadership development activities as it prepares to divide its commercial vehicle division. The manufacturer is casting a broad net to find and develop outstanding talent for the new structure.

The company has hired a multinational consultancy to carry out a complete leadership mapping and development programme. Furthermore, it is forming alliances with universities such as IIM Ahmedabad to improve leadership qualities. 

To develop an innovative culture, the corporation exposes executives to startup ecosystems through programmes similar to Shark Tank, in which they present business ideas to a panel of CEOs. The corporation is also partnering with a government-backed institution to adopt Industry 4.0 technologies, which are seen as critical for future competitiveness.

Girish Wagh, Executive Director at Tata Motors, said that the management consulting firm conducted extensive reviews of the company's top echelons, including L1, L2, and selected L3. This method included 360-degree feedback, psychometric tests, group discussions, and comparisons to industry norms. 

The insights were used to create personalized leadership development plans, which were supplemented with coaching and specialized training programs. "Also, comparing them with the industry will make them appreciate what kind of development plan they should have," Wagh told reporters.

As previously stated, Tata Motors has cooperated with IIM Ahmedabad for its L2 executives, a group of approximately 30-40 personnel drawn primarily from the commercial and product divisions. The goal was to develop entrepreneurial skills within a large corporate framework.

Over nine months, participants took part in workshops ranging from startup immersions to pitching company ideas to a Shark Tank-style panel of startup CEOs. "They visited startups as an immersive experience, coming up with business ideas, and presenting to the Shark Tank pool," Wagh told reporters.

Concurrently, with an emphasis on digital transformation through training in digital technologies, artificial intelligence (AI), and machine learning (ML), Tata Motors has partnered with the Centre for Industry 4.0 (C4i4), a government-sponsored organization, to groom digital leaders within their operations. 

The year-long certification program includes live projects to ensure that participants apply what they've learned practically. Collaborations with digitally aware firms for path mapping and UI/UX design also bring cutting-edge industry insights, according to Wagh.

The development appears significant, given that Tata Motors' demerged CV company will include eight key business units: heavy commercial vehicles; intermediate, light, and medium commercial vehicles; commercial vehicle passengers; international business; TML Smart City Mobility Solutions; and digital and non-vehicular (spares, fluids, and aggregates). 

These businesses will operate as distinct profit centers, with dedicated teams for each segment, with the goal of sharpening the focus on value generation, according to the top company official.

Also Read: Tata Motors Unveils Plan to Restructure Commercial Vehicle Unit

CMV360 Says

Tata Motors' focus on leadership development and innovation is a smart move. This approach helps the company prepare for future challenges and growth. Splitting the commercial vehicle unit into dedicated segments shows a clear commitment to improving efficiency and creating more value.