Home / Business and Economy / Tata Motors Demerger Effective Tomorrow, Unlocking New Opportunities
Tata Motors Demerger Effective Tomorrow, Unlocking New Opportunities
30 Sep
Summary
- Tata Motors' commercial and passenger vehicle businesses to split
- Girish Wagh to lead commercial vehicle entity, Shailesh Chandra to head passenger vehicle unit
- Demerger aims to let each business pursue its own strategy more nimbly
On September 30, 2025, Tata Motors announced that its demerger of the commercial vehicle (CV) and passenger vehicle (PV) businesses will become effective tomorrow, October 1, 2025. The company's board had approved the demerger scheme back in August 2024, and the National Company Law Tribunal (NCLT) in Mumbai had ordered a shareholders' meeting to consider the plan in March 2025.
Under the demerger, Tata Motors Limited (TML) will split its CV business, including all assets, liabilities, employees, and related investments, into a new entity called TMLCV. Meanwhile, the PV business, including the Electric Vehicle (TPEM) business, Jaguar Land Rover (JLR), and related investments, will merge back into the existing listed entity TML, which will be renamed.
Tata Motors' management believes the demerger will let each business pursue its own strategy more nimbly, sharpen accountability, and unlock value for shareholders. The CV and PV franchises have different dynamics, capital needs, and growth levers, and separating them makes strategic sense.
When the demerger takes effect, Girish Wagh will lead the TMLCV commercial vehicle entity, while Shailesh Chandra will head the TMPV passenger vehicle unit. Tata Motors' shareholders will receive one share of TMLCV for every one share of TML they hold.
