Tata Motors Demerger: Commercial Vehicles Business to List on November 12, Creating Two Focused Auto Giants for Investors

Mumbai | November 11

Tata Motors’ long-planned restructuring will enter a new phase this week, as the company’s commercial vehicles business prepares to list on the stock exchanges on November 12, following the demerger of its passenger and commercial vehicle units into two independently traded entities. The move marks one of the most significant reorganisations in India’s automotive sector in recent years.

According to a notice issued by the BSE on November 10, equity shares of the commercial vehicles entity — currently named Tata Motors Commercial Vehicles Ltd (TMLCV) — will be admitted to trading in the T Group segment. The company will subsequently adopt the Tata Motors Limited name, while the passenger vehicle entity continues under the name Tata Motors Passenger Vehicles Ltd (TMPV).

The stock will remain in a trade-for-trade segment for the first 10 sessions, in line with SEBI’s guidelines for newly listed or spun-off companies.

Two Focused Businesses, Two Growth Strategies

Under the 1:1 share entitlement, shareholders received one share in the newly separated commercial vehicle company for every Tata Motors share held on the record date of October 14, 2025.

This restructuring effectively creates:

The demerger is designed to give each business a sharper operating identity. Tata Sons Chairman N. Chandrasekaran, speaking about the restructuring earlier, said the company’s automotive divisions have been functioning as “independent business units” for several years, and the formal separation allows them to drive strategy, product development and capital allocation “with greater clarity and accountability.”

He noted that the passenger vehicles and commercial vehicles segments serve different customer bases, financing structures and product cycles, and separating them into two listed entities would reinforce focus and long-term growth positioning.

Commercial Vehicles Entity Begins Independent Listing Journey

With the listing effective November 12, the commercial vehicle business — currently known as Tata Motors Commercial Vehicles Ltd (TMLCV) — will begin trading in the T Group segment. In line with regulatory norms for newly listed or demerged companies, the stock will trade in a trade-for-trade window for the first ten sessions.

Shareholders who held Tata Motors stock as of the record date (October 14, 2025) received one share in the commercial vehicles company for every one share previously held. The passenger vehicle business continues to trade under Tata Motors Passenger Vehicles Ltd (TMPV), which includes the Passenger Vehicle, Electric Vehicle and Jaguar Land Rover operations.

This separation ensures that the commercial vehicles business can now report financial performance, investments and product strategy distinctly, without being combined with the consumer vehicle business.

Passenger Vehicle Entity Continues with EV and Brand Expansion

The passenger vehicles arm, which began trading independently from October 14, continues its focus on new model launches, EV adoption and integration across the JLR and Tata passenger vehicle lineup. The company has indicated that this structure allows each entity to prioritise investment and development according to its own segment needs, without cross-subsidisation.

What the Demerger Means for Shareholders

The demerger results in two separately listed Tata Motors companies, each with:

• Independent management and reporting frameworks
• Separate capital allocation priorities
• Clearer business visibility for investors

For shareholders, the value of Tata Motors is now represented through two stocks instead of one, each tied to its own industry cycle and operating performance.

As per the company, the restructuring reflects the “next step in the transformation journey,” following several years of operational streamlining, balance sheet strengthening, and brand repositioning across its automotive portfolio.

The listing on November 12 marks the formal beginning of two standalone Tata Motors automotive companies, each charting its own path in India’s evolving mobility landscape.