Marc Llistosella is not joining as next CEO: Tata Motors

Tata Motors Ltd. said former Daimler AG manager Marc Llistosella won’t be joining as its next chief executive officer as previously announced because he is unable to relocate to India for “personal reasons."

Guenter Butschek will continue as the company’s CEO and managing director until June 30, the company 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 SE 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 Ltd., said on Friday by phone. “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% this year, making it the top performer on the NSE Nifty 50 index.