The much-awaited Tata Motors demerger will officially take effect on October 1, 2025, as per the company’s latest exchange filing. Tata Motors is set to hit a major milestone by splitting its operations into two separately listed companies.
The auto giant will restructure its business by carving out the Commercial Vehicle (CV) business into a new listed entity. Meanwhile, the Passenger Vehicle (PV), Electric Vehicle (EV), and Jaguar Land Rover (JLR) divisions will continue under the existing Tata Motors Ltd.
Tata Motors Shareholding Ratio
For shareholders, the swap is straightforward. For every 1 share you currently hold in Tata Motors, you’ll get 1 share of the new company. Both entities will be listed separately on the stock exchanges, giving investors two distinct opportunities in the auto space.
The legal work is almost wrapped up, and Tata Motors is now focused on completing the operational tasks. The company expects the entire process to be done by the second quarter of FY26.
The CV business will be spun off into TML Commercial Vehicles Limited (TMLCV), which will later be renamed Tata Motors Ltd (TML).
The PV, EV, and JLR businesses will remain under the existing Tata Motors Ltd.
Why the Split?
The goal is simple: to sharpen focus. By separating the CV and PV/EV/JLR operations, Tata Motors wants to build two growth-driven companies, each targeting its market with better agility and efficiency.
This move is expected to unlock value for shareholders and give both businesses the flexibility to chase new opportunities in their respective sectors.
