The order, passed on August 25, clears the way for a long-planned restructuring under which Tata Motors will demerge its commercial vehicle business into TMCLV, while the passenger vehicle business will be merged with TMPV. The move aims to create a more streamlined structure within the group.
The scheme, which had earlier received board and shareholder approvals, now moves closer to execution with NCLT’s sanction.
The restructuring is expected to unlock greater operational efficiency and sharpen business focus across Tata Motors’ commercial and passenger vehicle verticals, aligning them with long-term growth strategies and potential external partnerships.
In its exchange filing, the company said:
“We wish to inform you that the Hon’ble National Company Law Tribunal, Mumbai Bench, was pleased to pass today, i.e., on August 25, 2025, an Order sanctioning the Composite Scheme of Arrangement among Tata Motors Limited (TML), TML Commercial Vehicles Limited (TMLCV), and Tata Motors Passenger Vehicles Limited (TMPV) and their respective shareholders under Sections 230-232 of the Companies Act, 2013, and other applicable provisions of the Act and the Rules framed thereunder.”
On Monday, Tata Motors’ shares closed nearly 1% higher at Rs 686.70 on BSE.
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