Tata Motors Ltd. has completed the demerger of its passenger vehicle (PV) and commercial vehicle (CV) businesses, marking one of India’s largest auto restructurings in recent years. The process, which began in early 2024, culminated with the stock trading ex-demerger today.
The Tata Motors demerger marks a pivotal step in its transformation into a dual-focused automotive powerhouse. It separates the high-margin PV-JLR arm from the asset-heavy CV business—a structural shift last seen in India’s auto sector over a decade ago.
Here’s a look at how the restructuring unfolded.
1. March 4, 2024 — Tata Motors announces demerger
Tata Motors formally unveiled plans to split its business into two independent listed entities—one for passenger vehicles and Jaguar Land Rover (JLR), and another for commercial vehicles. The move aimed to unlock value, improve capital allocation, and bring sharper strategic focus.
2. April-May 2024 — Groundwork for internal restructuring
The company initiated internal realignments, transferring assets, employees, and operational responsibilities under the two future entities. Advisory firms and legal consultants were appointed to prepare the demerger scheme.
3. June 2024 — Board approval for demerger
The Tata Motors board gave its formal approval to the demerger scheme, following which the company filed the necessary documents with the Securities and Exchange Board of India and the National Company Law Tribunal. This began the formal regulatory journey.
4. August-September 2024 — Regulatory reviews
SEBI and stock exchanges reviewed the scheme to ensure compliance with listing and corporate governance norms. Parallely, the company engaged with institutional investors to explain the valuation framework and rationale.
5. December 2024 — Approvals from stakeholders
Tata Motors secured approval from its shareholders, creditors, and debenture holders. The support underscored investor confidence in the group’s strategy to separate its high-growth passenger business from the cyclical CV arm.
6. February 2025 — NCLT hearings begin
The NCLT bench in Mumbai began hearings on the demerger petition. Tata Motors presented valuation details and financials for both proposed entities, paving the way for the final clearance.
7. July 2025 — NCLT approval granted
The NCLT approved the demerger, allowing Tata Motors to proceed with the implementation and listing process. The company began preparing for share allotments and operational separation.
8. August-September 2025 — Listing preparations and record date
Tata Motors fixed a record date for determining eligible shareholders for shares of the new commercial vehicle entity — TML Commercial Vehicles Ltd. Brokers and stock exchanges aligned systems to facilitate smooth trading transition.
9. October 2025 — Tata Motors trades ex-demerger
The stock began trading ex-demerger on 14 October 2025. The price adjusted to reflect only the PV + JLR business, while the Tata Motors CV business is set for an independent listing shortly. The apparent “price fall” was primarily technical.
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10. Next steps
The newly carved-out TML Commercial Vehicles Ltd. will soon list separately, likely retaining the “Tata Motors Ltd.” name for branding continuity. Analysts say the split could unlock better valuations and allow each entity to pursue distinct growth paths — electric and luxury mobility for Tata Motors PV and infrastructure-driven expansion for Tata Motors CV.