Tata Motors is splitting its business into two separate companies starting October 1, creating one focused on commercial vehicles and another on passenger vehicles. This big change follows approvals from the company’s board, regulators, and India’s National Company Law Tribunal.
Shareholders stand to benefit directly from the demerger. For every fully paid Tata Motors share you hold on the upcoming record date, you’ll get one share in the new commercial vehicle company. The record date hasn’t been set yet—it’ll come after some final paperwork with regulators. Once confirmed, investors will receive one share each in the commercial vehicle and passenger vehicle entities for every Tata Motors share they own. Those new shares will automatically land in your demat account, and your voting rights will stay balanced across both companies. From then on, each company will handle its own dividends.
The demerger carves out two independent, publicly traded firms. The commercial vehicle side, currently under TML Commercial Vehicles Ltd., will take on the name Tata Motors Limited after the split. Meanwhile, the original Tata Motors will rebrand as Tata Motors Passenger Vehicles Ltd. This new entity keeps the passenger vehicle business, electric vehicles, and key investments like Jaguar Land Rover.
Leading the charge are familiar faces from within the company. Girish Wagh, who now runs commercial vehicle operations, will head the new commercial vehicles firm. Shailesh Chandra, currently overseeing passenger and electric vehicle divisions, will steer the passenger-focused company.
Tata Motors says this move will unlock value and boost efficiency by letting each business tackle its unique challenges. Commercial vehicles deal with different market trends, growth opportunities, and funding needs compared to passenger vehicles, including EVs. The company first floated the demerger idea earlier this year, with July 1, 2025, set as the official date for accounting and valuations, while October 1 kicks off the legal split.
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