Tata Motors has officially completed its long-anticipated demerger, marking a significant milestone in the company’s transformation journey. With this restructuring, the automaker has split its operations into two independent, publicly listed entities one focused on Commercial Vehicles (CV) and the other on Passenger Vehicles (PV).
The separation took legal effect on October 1, 2025, after receiving approval from the National Company Law Tribunal (NCLT), Mumbai Bench, under Sections 230–232 of the Companies Act, 2013. Tata Motors announced the completion of the process in a regulatory filing to the BSE and NSE dated October 30, 2025.
Distinct Structures, Clearer Focus
Under the new structure, the original Tata Motors Limited (TML) has been rebranded as Tata Motors Passenger Vehicles Limited (TMPVL), which will oversee the company’s passenger vehicle operations, including its rapidly expanding electric vehicle portfolio and the Jaguar Land Rover (JLR) business.
Meanwhile, the newly formed Tata Motors Limited will now represent the commercial vehicle division, following the issuance of a fresh Certificate of Incorporation by the Registrar of Companies (ROC) on October 29, 2025.
Shareholder Allocation and Listing Schedule
Tata Motors has designated October 14, 2025, as the record date to identify shareholders eligible to receive shares in the newly formed commercial vehicle company. After completing the necessary regulatory steps, the new Tata Motors Limited (CV division) is expected to debut on the stock exchanges by early November 2025.
Equal Distribution of Shares
As per the sanctioned demerger plan, the restructuring will proceed with a 1:1 share exchange ratio. This means that for every share held in Tata Motors on the record date, investors will be allotted one equivalent share in the new commercial vehicle entity.
No additional steps are required from shareholders — the new shares will be automatically credited to their demat accounts once the listing process concludes.
What the Demerger Means for Investors
After the restructuring, shareholders will see their holdings split between two separately listed companies, each representing a focused business segment:
Tata Motors Passenger Vehicles Limited (TMPVL): Encompasses the passenger vehicle, electric vehicle, and Jaguar Land Rover (JLR) operations.
Tata Motors Limited (TML): Represents the independent commercial vehicle business.
A New Era of Focused Growth for Tata Motors
For example, an investor owning 50 shares of Tata Motors on the record date will continue to hold 50 shares in Tata Motors Passenger Vehicles Ltd (TMPVL) and receive 50 shares in the new Tata Motors Ltd (TML) — effectively maintaining the same overall ownership value across both companies.
The separation has been designed to unlock shareholder value by giving each entity a sharper strategic direction and improved capital allocation. With independent management teams and financial structures, both arms can now pursue growth tailored to their market strengths — the passenger vehicle business focusing on electrification, innovation, and global synergies, while the commercial vehicle division drives expansion through scale, technology, and leadership in the Indian market.
In a regulatory filing dated October 30, 2025, Tata Motors Passenger Vehicles Ltd (formerly Tata Motors Ltd) confirmed the official name change of its subsidiary, backed by the Registrar of Companies’ Certificate of Incorporation issued on October 29, 2025.
With the demerger finalized, market experts anticipate clearer valuation metrics for both segments. TMPVL is expected to capitalize on India’s accelerating shift toward EVs, while the new Tata Motors Ltd will strengthen its domestic dominance and enhance export opportunities.
This dual-listing framework marks a pivotal transformation for Tata Motors, offering investors greater transparency, focused leadership, and distinct growth trajectories setting the stage for the next phase of evolution for one of India’s most iconic automotive names.
