Overview
- Name Change Confirmed: Tata Motors Ltd officially renamed Tata Motors Passenger Vehicles Ltd (TMPV) on October 13, 2025, via MCA certificate, focusing on PV, EV, and JLR.
- Tata Motors Demerger Effective: The 1:1 split into TMPV and TML Commercial Vehicles Ltd (TMLCV) took effect October 1, 2025, with TMLCV set to relist as “Tata Motors Ltd” in November.
- Record Date Impact: October 14, 2025, determined shareholder eligibility; shares adjusted to ₹400 post-special session, down ~40% from ₹661 close, reflecting ex-CV value.
- Leadership Shuffle: Girish Wagh leads TMLCV as MD & CEO; Shailesh Chandra heads TMPV; PB Balaji joins both boards ahead of JLR CEO role.
- Historical Note: Originally incorporated as Tata Locomotive And Engineering Company Limited, the company evolves post-NCLT approvals in August-September 2025.
- Investor Benefits: 1:1 ratio means one TMLCV share per TMPV share; total value preserved, with enhanced focus on growth in EVs and luxury segments.
- Rationale: Split boosts agility, customer experience, employee prospects, and shareholder value amid strong turnaround in automotive units.
Tata Motors Completes Demerger: PV Entity Reborn as Tata Motors Passenger Vehicles Ltd
Mumbai, October 15, 2025 – In a landmark restructuring, Tata Motors Ltd has transitioned into Tata Motors Passenger Vehicles Ltd (TMPV), as confirmed in a regulatory filing on October 13, 2025. The Ministry of Corporate Affairs (MCA) issued a fresh Certificate of Incorporation, marking the culmination of a 1:1 demerger that separates the company’s passenger and commercial vehicle businesses into focused, listed entities. This move, effective from October 1, 2025, follows National Company Law Tribunal (NCLT) approvals in August and September, and aims to sharpen operational agility amid India’s booming auto sector.
The demerger creates two powerhouses: TMPV, encompassing passenger vehicles (PV), electric vehicles (EV), and Jaguar Land Rover (JLR); and TML Commercial Vehicles Ltd (TMLCV), housing the commercial operations. Shareholders holding stock on the record date of October 14, 2025, will receive one TMLCV share (face value ₹2) for every TMPV share, preserving overall value while unlocking segment-specific growth.
Special Trading Session and Share Price Adjustment
On October 14, 2025, Tata Motors conducted a one-hour special pre-open session (9 AM–10 AM) to discover the ex-demerger price. Shares, which closed at ₹660.90 on BSE and ₹660.75 on NSE the previous day, settled at ₹400 – a notional 39.5% drop. This adjustment reflects the removal of the CV business’s valuation from TMPV’s stock, not an underlying decline in fundamentals. TMLCV shares, untradeable until listing, are expected to debut in November 2025, potentially mirroring the adjustment for balanced investor exposure.
Leadership Appointments for the New Era
To steer the entities, Tata Motors announced key hires in late September 2025. Girish Wagh joins TMLCV as Additional Director, Managing Director, and CEO, effective October 1, 2025. Shailesh Chandra takes the helm at TMPV in the same capacities for three years until September 30, 2028, while retaining his role as MD of Tata Passenger Electric Mobility Ltd.
PB Balaji, incoming global CEO of JLR, has been appointed to both boards. Sudha Krishnan joins as an additional non-executive independent director for five years from October 1. Hanne Sorensen continues on JLR’s UK board, while Kosaraju Veerayya Chowdary and Guenter Karl Butschek bolster TMLCV’s leadership.
Historical Evolution and Name Swap
Originally incorporated as Tata Locomotive And Engineering Company Limited, the company has undergone significant transformations. Post-demerger, TMPV’s Memorandum and Articles of Association have been amended to reflect the new name. Applications are underway to update stock exchange records and websites. TMLCV will eventually revert to “Tata Motors Limited,” restoring the iconic branding to the commercial arm.
Strategic Rationale Behind the Split
Announced in early 2024, the demerger addresses the need for specialized focus in a dynamic market. Chairman Natarajan Chandrasekaran highlighted the company’s turnaround, noting independent performance across units. “This will enhance focus and agility, leading to superior customer experiences, better employee growth, and enhanced shareholder value,” he stated. TMPV eyes 8-10% growth in H2 FY26, driven by SUV demand, EV/CNG adoption (45% of PV earnings), and JLR recovery post-cyberattack.
For investors, the structure remains tax-neutral, with no immediate trading in TMLCV shares until listing (expected 4-8 weeks). Brokerages like Nomura value PV and CV nearly evenly at ₹367 and ₹365 per share, respectively. This positions both entities for targeted expansion, from EVs in TMPV to robust CV logistics in TMLCV.
As Tata Motors’ legacy evolves, the demerger signals a bold step toward sustainable, shareholder-centric growth in India’s auto powerhouse.
Source: upstox.com
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