Tata Motors has announced that it will officially split its business into two separate listed companies from October 1, 2025. One company will handle Commercial Vehicles (CV) like trucks and buses, while the other will focus on Passenger Vehicles (PV), Electric Vehicles (EV), and luxury brand Jaguar Land Rover (JLR). This move follows approval from the National Company Law Tribunal (NCLT), which has cleared the legal path for the restructuring. The company expects to finish the operational separation by the end of Q2 FY26 (December 2025).
Under the plan, the Commercial Vehicle Business will be moved to a new entity called TML Commercial Vehicles Limited (TMLCV), which will later take the Tata Motors name. The Passenger Vehicle, EV, and JLR Business will remain in the current company, which will also be renamed Tata Motors Ltd. For shareholders, the split will work on a 1:1 ratio, meaning they will get one share in the new CV company for every one share they already hold. The record date for this will be announced later, after which the two companies’ shares will trade separately.
The main reason behind this demerger is to give each business strategic focus. The CV division will be able to sharpen its offerings for logistics and fleet customers, while the PV/EV/JLR side can focus on consumer innovation, luxury vehicles, and electrification. Tata Sons Chairman N. Chandrasekaran believes this will improve customer experience, help employees grow, and increase shareholder value.
Another benefit is faster decision-making. Each unit will have the freedom to adopt tailored strategies suited to their own markets. This separation is also expected to attract different types of investors—those interested in the commercial vehicle industry and those who prefer the passenger and EV growth story.
Market experts say the split could unlock shareholder value by making each business’s performance clearer to investors. Some analysts also point out that the separation could help with deals like the Tata-Iveco acquisition, which may boost Tata’s position in the global CV market. However, they also warn that the company will need to manage debt and integration risks carefully after such expansions.
In short, starting October 1, 2025, Tata Motors will officially operate as two separate companies, each with a sharper growth plan—one focused on global scale in commercial vehicles, the other on innovation and luxury in passenger and electric cars.