Tata Motors Set to Restructure After NCLT Nod

By Mahender Singh | Published Date : August 28, 2025

Tata Motors gets NCLT approval to restructure, separating its commercial and passenger vehicles.

Tata Motors has been trying for new major inventions for a long time. Finally, on 27 August 2025, Tata succeeded in making an agreement with NCLT to go ahead with this new project. This agreement divides Tata Motors into two major businesses:
1. Tata Motors Passenger Vehicles Ltd.
2. TML Commercial Vehicles Ltd.

About Subsidy Plans

Table Of Contents

1. About Subsidy Plans

2. What does that really mean?

3. Strategic Shift for Smarter Execution

4. No Change for Customers or Investors

5. Tata Motors' Next Move

Also Read: Also Read: Ashok Leyland Appoints Two New Independent Directors

Tata Motors has been running its passenger vehicle (PV) and commercial vehicle (CV) operations through separate subsidiaries since 2022. But until now, this split was more on paper than in practice. This new restructuring will make the separation official and clear-cut both legally and operationally. For those following the industry, this isn’t exactly surprising, but it’s still a big moment for Tata Motors. With this legal approval, the company can now bring its vision to life, giving its commercial and passenger vehicle divisions the freedom to operate more independently, focus better, and prepare for the challenges and opportunities ahead.

What does that really mean?

Essentially, the commercial vehicle side (think trucks, buses, goods carriers) and the passenger vehicle side (cars, SUVs, and especially electric vehicles) will now function almost like two distinct companies, each with its own management, focus, and possibly, in the future, even its own investors.
The company says this is a “vertical demerger,” which is a corporate way of saying: we’re not breaking up, we’re just giving each business its own space to breathe and grow.

Strategic Shift for Smarter Execution

If you look at it from a market lens, this is a smart move. The passenger car segment, especially EVs, is booming, and Tata is leading the charge in India. On the other hand, the commercial vehicle business follows a more traditional, cyclical path, driven by infrastructure and logistics growth.
By keeping them under separate umbrellas, Tata Motors can focus better, innovate faster, and make clearer decisions, especially when it comes to partnerships, fundraising, or even separate listings down the line.

An industry analyst we spoke to summed it up well:

“It’s about focus. You can’t treat an EV business the same way you treat a truck business. They need different mindsets and different speeds.”

No Change for Customers or Investors

If you're wondering what this means for Tata truck owners or shareholders, nothing changes right now. The shareholding pattern remains the same. You’ll still see Tata Motors on the stock exchange and at the showroom.

But behind the scenes, things are getting streamlined. Investors will now be able to see the financials of the PV and CV businesses more transparently, which helps build trust and long-term value.

Tata Motors' Next Move

Now that NCLT has cleared the way, Tata Motors will begin implementing the restructuring. The company is aiming to complete the entire process within the current financial year.
Industry watchers believe this is just the beginning. With this clearer structure, don’t be surprised if Tata’s EV arm attracts new international investors just like it did in 2021 when TPG invested in Tata Passenger Electric Mobility.

Also Read: 

Ashok Leyland Strengthens LCV Network with New Agra Dealership

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Frequently Asked Questions on Tata Trucks

Q1. What types of trucks does Tata Motors offer?

 Ans: Tata Motors offers a wide range of trucks, including light commercial vehicles (LCVs), intermediate commercial vehicles (ICVs), and heavy commercial vehicles (HCVs), covering cargo, tippers, and tractor-trailers.

Q2. Are Tata Trucks available with BS6 engines? 

Ans: Yes, all Tata trucks are now BS6-compliant, offering cleaner emissions and improved fuel efficiency across categories.

Q3. What is the price range of Tata Trucks in India?

Ans: Tata truck prices range from around Rs 4.5 lakh for small vehicles to Rs 45 lakh+ for heavy-duty models, depending on the variant and configuration.

Q4. Do Tata Trucks come with service and maintenance packages?

 Ans: Yes, Tata Motors offers AMC (Annual Maintenance Contracts), extended warranties, and roadside assistance for most of its commercial vehicles.

Q5. Are there electric trucks available in Tata’s lineup?

 Ans: Yes, Tata has introduced electric trucks in the light commercial segment, primarily designed for last-mile urban delivery, with more models expected in the future.