Tata Motors Demerger in Final Stage as Commercial Vehicle Arm Gets New Name

 Tata Motors’ long-awaited demerger is nearing completion, with the auto major officially renaming its commercial vehicle subsidiary TML Commercial Vehicles Ltd as Tata Motors Ltd. The move marks one of the final steps in the company’s corporate restructuring to create two independent entities focused on distinct business verticals.

In a regulatory filing, Tata Motors Passenger Vehicles Ltd (TMPV) announced that the name change was formalised through a fresh Certificate of Incorporation issued on October 29, 2025. This development follows the earlier renaming of the parent company itself to Tata Motors Passenger Vehicles Ltd on October 13, 2025, under the approved Composite Scheme of Arrangement.

The restructuring separates Tata Motors’ passenger vehicle (PV) and commercial vehicle (CV) divisions into standalone companies. Post-demerger, TMPV will oversee the passenger vehicle and electric mobility business, including the fast-growing Tata.ev electric car portfolio, while the newly renamed Tata Motors Ltd will focus solely on commercial vehicles, spanning trucks, buses, and fleet mobility solutions.

The effective date of the demerger was October 1, 2025, and the record date was October 14, 2025. Shareholders registered on that date received one share of Tata Motors Commercial Vehicles Ltd for every one share held in Tata Motors Ltd, resulting in parallel holdings across both entities.

Following the separation, Tata Motors Passenger Vehicles’ share price was discovered at ₹400 per share on the NSE, compared to the pre-demerger closing price of ₹660.75, implying an approximate valuation of ₹260.75 per share for the commercial vehicle business.

Brokerage firm Nomura has valued TMPV at ₹367 per share and Tata Motors Ltd (CV entity) at ₹365 per share, while Mehta Equities’ Prashanth Tapse pegs the standalone commercial business at around ₹400 per share.

Industry analysts view this as a pivotal move that will unlock value for investors and sharpen strategic focus across the company’s business lines. With a domestic CV market share exceeding 37% and a presence in international markets, including a stake in Iveco Group, Tata Motors’ commercial arm is expected to compete more directly with Ashok Leyland and other pure-play commercial vehicle manufacturers.

The final listing of the separated entities is expected to take place in November 2025, completing one of the most significant restructurings in the Indian automobile industry.

By splitting its operations, Tata Motors aims to streamline decision-making, attract segment-specific investors, and accelerate growth across both passenger and commercial vehicle domains — positioning the Tata brand for greater competitiveness in the evolving mobility landscape.