Tata Motors Limited (TML) has revealed its intention to undergo a demerger, dividing its operations into two distinct listed entities. The decision, approved by the company’s Board of Directors, aims to streamline its business structure and enhance operational focus.
Under the proposed demerger, Tata Motors will segregate its operations into two separate entities. The first entity will encompass the Commercial Vehicles business and related investments, while the second entity will house the Passenger Vehicles businesses, including PV, EV, and Jaguar Land Rover (JLR), along with their associated investments. Shareholders of TML will maintain identical shareholding in both entities. This move follows the successful implementation of distinct strategies across the Commercial Vehicles, Passenger Vehicles, and Jaguar Land Rover businesses, which have been operating independently under their respective CEOs since 2021.
According to Chairman N Chandrasekaran, the demerger aligns with Tata Motors’ strategy to capitalize on market opportunities, enhance focus, and drive agility. He emphasized that the restructuring would lead to a superior experience for customers, better growth prospects for employees, and enhanced value for shareholders.
