Tata Motors said former Daimler manager Marc Llistosella will not be joining the company as its next CEO as previously announced because he is unable to relocate to India for "personal reasons."
Guenter Butschek will continue as CEO and managing director of Tata Motors, the parent company of Jaguar Land Rover, until June 30, Tata said in a filing Friday.
Llistosella, who headed Daimler Trucks in Asia, was due to take charge in July, Tata announced on Feb. 12. Butschek, a former Airbus executive, has been CEO since 2016.
"This creates some uncertainty about who will come in and whether the succession will be announced in time or not," Deepak Jasani, head of retail research at HDFC Securities, said Friday. "They also have the option of giving Guenter Butschek an extension since he has been there and under him the company has seen some turnaround."
Tata Motors topped expectations during the most recent quarter after struggling with falling sales and rising debt. The turnaround followed deep cost cuts and improved vehicle demand, while the manufacturer remains largely dependent on its luxury Jaguar Land Rover unit.
Tata Motors shares have risen about 66 percent this year, making it the top performer on the NSE Nifty 50 index.
