Tata Motors Demerger Effective from 1st October: What Investors Need to Know

30 September | Mumbai – Tata Motors is entering a new chapter in its journey. From October 1, 2025, the auto giant’s long-awaited demerger of its passenger vehicle (PV) and commercial vehicle (CV) businesses will formally come into effect.

The New Structure Post Demerger

The demerger will result in two distinct listed entities:

Tata Motors Passenger Vehicles Ltd (TMPVL) – This will house the passenger vehicle business, including electric vehicles and Jaguar Land Rover (JLR).

Tata Motors Ltd (TML) – This new listing will represent the commercial vehicles business and its related investments.Record Date

The record date for the CV entity has been set for mid-October, with its separate listing expected in November 2025.

Shareholder Entitlement Ratio

For investors, the process is straightforward. Tata Motors has fixed the share entitlement ratio at 1:1.

For every one share of Tata Motors held, shareholders will receive one additional share in Tata Motors Commercial Vehicles (TMLCV).

This ensures that investors continue to benefit equally from both businesses.

Leadership for the New Entities

Alongside the structural split, Tata Motors has also announced a leadership reshuffle to guide the two companies:

Girish Wagh has been appointed Managing Director & CEO of the commercial vehicles entity (TMLCV), effective October 1, 2025.

Shailesh Chandra will lead the passenger vehicle entity (TMPVL) as Managing Director & CEO. He will also continue to serve as MD of Tata Passenger Electric Mobility Ltd.

Why the Demerger?

According to Tata Motors, the decision to separate the two businesses will provide:

• Sharper strategic focus tailored to passenger and commercial vehicles
• Improved agility to respond quickly to changing market dynamics, and
• Clearer capital allocation, ensuring that each arm invests where it matters most
• By operating independently, both entities will be better placed to accelerate innovation and unlock long-term value.

What This Means for Shareholders

For shareholders, the demerger opens the door to exposure in two focused businesses instead of one. The separation is expected to create sharper value discovery in the stock market, offering investors a clearer picture of each business’s performance.

With the commercial vehicle unit gearing up for a separate listing in November 2025, the coming months will be crucial for investors tracking valuations and potential opportunities.