Commercial, Passenger Vehicles Business Of Tata Motors To Be Listed Separately

The Board of Directors of Tata Motors approves a proposal of demerger into two separate listed companies. One company will comprise the Commercial Vehicles business and its related investments while the other will hold the Passenger Vehicles businesses including PV, EV, JLR and its related investments. The demerger will be implemented through an NCLT scheme of arrangement and all shareholders of TML shall continue to have the identical shareholding in both the listed entities. According to the company, while there are limited synergies between Commercial Vehicles and Passenger Vehicles businesses, there are considerable synergies to be harnessed across PV, EV and JLR particularly in the areas of EVs, autonomous vehicles, and vehicle software which the demerger will help secure. Chairman N Chandrasekaran says, “Tata Motors has scripted a strong turnaround in the last few years. The three automotive business units are now operating independently and delivering consistent performance. This demerger will help them better capitalise on the opportunities provided by the market by enhancing their focus and agility. This will lead to a superior experience for our customers, better growth prospects for our employees and, enhanced value for our shareholders.”