New Delhi, May 27, 2025 — Tata Motors has unveiled plans to separate its commercial vehicle and passenger vehicle businesses, including electric vehicles and the Jaguar Land Rover brand, in a bid to sharpen strategic focus and boost shareholder returns.
The proposed demerger has received near-unanimous approval from shareholders, with over 99.99% voting in favor. Under the plan, investors will receive shares in Tata Motors Commercial Vehicles Limited (TMLCV) proportional to their existing holdings in Tata Motors Limited (TML). Both TMLCV and Tata Motors Passenger Vehicles Limited (TMPV) will be listed independently, enabling investors to track the performance of each business separately.
Chairman Natarajan Chandrasekaran highlighted that this move aims to provide each unit with greater autonomy to pursue market-specific strategies, leading to improved operational agility and stronger value creation for customers, employees, and shareholders alike.
With this restructuring, the commercial vehicle segment, which covers trucks, buses, and related services, will operate through TMLCV. Meanwhile, TMPV will focus on passenger vehicles, electric mobility, and the luxury car segment through Jaguar Land Rover. This division allows each business to respond effectively to the distinct demands of their respective markets and accelerate innovation.
The demerger is expected to be effective in the second half of 2025, with July 1 as the appointed date and October 1 as the effective date. Shareholders will maintain proportional ownership in both companies, positioning them to benefit from the individual growth potential of each segment. Industry analysts believe this separation will unlock value by allowing each entity to be evaluated on its own merits by investors globally.
This strategic reorganisation reflects Tata Motors’ efforts to remain competitive and responsive in a fast-changing automotive industry, marked by rising demand for electric vehicles and evolving commercial transportation needs. The company anticipates that the demerger will create a leaner, more focused structure capable of delivering sustainable growth and enhanced shareholder returns in the years ahead.
