Tata Motors CV arm lists, enters new growth phase

Tata Motors’ long-awaited corporate restructuring reached a key milestone on Tuesday as its commercial vehicle (CV) business made its debut as a separately listed entity, signalling the culmination of nearly a decade of transformation aimed at building two strong and self-reliant companies.

Addressing the listing ceremony at the Bombay Stock Exchange, Tata Motors Chairman N Chandrasekaran described the event as a “historic moment” for the group. He said the decision to separate the passenger and commercial vehicle divisions was taken years ago to ensure both businesses became robust, efficient and future-ready.

“It’s always difficult to make changes to a company that’s been an icon for so long. But eight or nine years ago, it was clear that Tata Motors needed a different path,” Chandrasekaran remarked.

The process, which began around 2017-18, involved an extensive restructuring exer,cise—splitting teams, redefining operations, and establishing distinct strategies for engineering, technology, customers and investors. Historically, the CV arm was the stronger profit generator, while the passenger vehicle division relied on it for financial support. “We had to make sure both comp, including the nies were of fit and strong,” he added.

Despite setbacks during the pandemic, Tata Motors regained its momentum post-2,020. Chandrasekaran credited employees, partners and advisors for their role in completing the separation. “Now we have two strong independent companies—Tata Motors Passenger Cars and Tata Motors Commercial Vehicles,” he said.

In the June quarter of FY26, Tata Motors Commercial Vehicles (TMCV) reported revenue of ₹17,000 crore, down 4.6% yea,r-on-year, with an EBITDA margin of 12.2%. For FY25, the segment posted revenue of ₹75,055 crore and EBITDA of ₹8,856 crore, delivering an impressive return on capital employed (ROCE) of 37.7%.

TMCV Managing Director and CEO Girish Wagh said the listing marked a new era of governance, accountability and growth. “This milestone reflects our commitment to sharper governance and relentless execution. With seven million shareholders, TMCV begins its journey as one of India’s largest listed entities by shareholder count,” he noted.

Wagh added that the company’s international businesses across ,the Middle East, Africa and Asia are expanding steadily, and the focus ahead will be on greener, smarter mobility solutions. “The proposed acquisition of Iveco will position us as the world’s fourth-largest commercial vehicle manufacturer,” he said.

Earlier this month, Reuters reported that the Italian government had, conditionally approved Tata Motors’ €3.8-billion acquisition of Iveco, following the truck maker’s agreement to divest its defence unit to Leonardo, an Italian state-backed group.

“With this demerger, Tata Motors Commercial Vehicles will now chart its own course,” Chandrasekaran concluded. “Both companies have an exciting future—and I’m fully behind them.”