Tata Motors Demerger Approved: Passenger and Commercial Vehicle Businesses to Split from October 1

By Mahender Singh | Published Date : September 29, 2025

Tata Motors demerger approved; commercial and passenger vehicle businesses to operate separately under TMPV and TMLCV. Investors get 1:1 share in new company.

Tata Motors is set to undergo a big change. Starting October 1, 2025, the automaker will divide into two distinct businesses, separating its passenger and commercial vehicle operations.

The idea behind the move? To help each part of the business grow better on its own — especially in the fast-changing passenger car and commercial truck markets.

Passenger and Commercial Units to Work Independently

Table of Contents

1. Passenger and Commercial Units to Work Independently

2. Major Changes in Leadership

3. What This Means for Investors and the Market

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The National Company Law Tribunal (NCLT) has now approved the company’s plan to reorganize. As part of this, Tata Motors will be split into two different arms:

• Tata Motors Passenger Vehicles Limited (TMPV) will focus on cars, SUVs and also the booming electric vehicle (EV) market. This includes electric trucks, which Tata has been slowly introducing in India.
• On the other side, Tata Motors Commercial Vehicles Limited (TMLCV) will look after trucks, buses and the rest of the heavy-duty vehicle lineup.

TMLCV will also be listed on the stock market as a separate entity — meaning it will trade independently. However, both units will still be part of the Tata Group and nothing changes in terms of ownership or promoter control.

There’s also good news for existing investors. For every share they currently hold in Tata Motors, they’ll get one matching share in TMLCV — a 1:1 share swap. So there's no dilution of their holdings.

Major Changes in Leadership

Along with the demerger, Tata Motors has also made changes in its top management:

• Shailesh Chandra will become the new Managing Director (MD) and CEO of Tata Motors Limited from October 1. He will also continue to lead Tata Passenger Electric Mobility. Under his leadership, Tata’s electric cars have become popular in India.
• Girish Wagh will soon head TMLCV as MD and CEO. If his name sounds familiar, it’s because he was behind some major projects like the Tata Ace truck and the Nano.
• In a major move, P.B. Balaji will take over as the new CEO of Jaguar Land Rover. Balaji, who has been Tata Motors’ Group CFO, is also making history as the first Indian to head the British luxury brand.
• Dhiman Gupta will be the new Chief Financial Officer (CFO) of Tata Motors starting November 17.

On the board level, former MD Guenter Butschek will join the board of the new commercial vehicle company (TMLCV) and Sudha Krishnan has been appointed as an additional independent director.

What This Means for Investors and the Market

Tata Motors Chairman N. Chandrasekaran said, “This strategic move will give both businesses more focus, speed and a customer-first approach. It will also create better value for shareholders and open new opportunities for employees.”

For investors, this is good news. The value of their investment remains the same and they now have shares in two focused businesses — one for electric vehicles and passenger cars and the other for commercial vehicles like trucks and electric trucks.

With the growing demand for electric vehicles and Tata Motors’ strong presence in the commercial truck segment, the future looks promising for both companies. The appointment of an Indian CEO at JLR also highlights Tata’s commitment to global leadership.

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Frequently Asked Questions on Commercial Vehicles

1. What is the Tata Motors demerger about?

Ans: Tata Motors will split its operations into two separate companies—one for passenger and electric vehicles (TMPV) and the other for commercial vehicles (TMLCV).

2. When will the Tata Motors demerger take effect?

Ans: The demerger is set to take effect from October 1, 2025, following approval from the National Company Law Tribunal (NCLT).

3. Will investors lose their shares in the demerger?

Ans: No. Investors will receive a 1:1 share in the new TMLCV for every Tata Motors share they hold. Their overall value remains protected.

4. Who are the new CEOs after the demerger?

Ans: Shailesh Chandra will lead TMPV and Girish Wagh will head TMLCV. P.B. Balaji becomes the new CEO of Jaguar Land Rover (JLR).

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