Tata Motors ropes in Maruti man to revive car unit's fortunes

After having worked with country's biggest carmaker Maruti Suzuki for almost two decades, Mayank Pareek who recently moved out of the company, will take charge of passenger vehicle business unit (PVBU) of Tata Motors.
According to the statement issued by Tata Motors, Pareek will join the company on October 1 and take over from Ranjit Yadav, who will now head the international business for passenger & commercial vehicles.

Unlike Maruti Suzuki, which has been ruling the Indian roads for several years, the challenge for Pareek in his new responsibility will be to revive the dwindling passenger vehicle sales of Tata Motors. In fiscal 2014, company saw a volume decline of 36.78% over fiscal 2013, as per data provided by Society of Indian Automobile Manufacturers. Sales during April-August this fiscal declined 25% compared with same period last year.

"It will be a huge culture difference of sorts for Pareek, in terms of the number of products and volumes that Maruti had compared with Tata Motors. However, his rich experience within the segment will help Tata Motors in the long run," said an analyst tracking the company.

"As president, PVBU, Pareek would be responsible for steering the passenger vehicle business. His extensive experience in the passenger car market will play a significant role in harnessing Tata Motors growth potential to help position the company as one of the leading passenger car manufacturers in India," Tata Motors said in a statement.

Pareek will also be a member of the corporate steering committee.

With a vast experience of over two decades with Maruti Suzuki, Pareek in his last role was the chief operating officer, wherein he was heading the marketing & sales vertical that included domestic marketing and sales, dealer development, product development, used car business, outbound logistics, spare parts and accessories, after market services and international marketing & sales.

He was also member of MSIL management committee and a permanent invitee to the MSIL board.

Lack of new products and perception issue led to a continuous decline in passenger vehicle sales of Tata Motors. In order to revive the business, the company has seen many changes in the management in the last few years. According to experts, the sudden death of company's managing director Karl Slym along with some exits from the key the positions may have impacted the overall the implementation of company's revival plan.

"Pareek has been long associated with Maruti. Hence, he can bring in the stability that Tata Motors is looking for," said Puneet Gupta, associate director, IHS Automotive Sales Forecasting.

"He understands the market and pulse of the consumers. He will also be able to infuse some confidence within the dealer network, which will help in boosting sales," he said.

Pareek began his career in 1982 with Bharat Heavy Electricals Ltd and joined Maruti Udyog in 1991. Initially, he was responsible for sales in the northern region and subsequently managed dealer development.