Tata Motors completes demerger; passenger arm now Tata Motors Passenger Vehicles Ltd
The original listed entity, which now holds the passenger vehicle and JLR businesses, has been renamed Tata Motors Passenger Vehicles Ltd (TMPV).
ADVERTISEMENT
If you spotted a new name on your Tata Motors shares this week, you’re not mistaken. The automobile major has officially rebranded itself as Tata Motors Passenger Vehicles Ltd (TMPV), marking the culmination of its long-planned demerger of the passenger and commercial vehicle businesses.
The restructuring — effective October 14, 2025 — formally splits Tata Motors into two separate entities, each with its own management, focus areas, and growth strategy. Under the new structure, TMPV will oversee the company’s passenger vehicle, electric vehicle (EV), and Jaguar Land Rover (JLR) operations, while the commercial vehicle (CV) arm will continue under the name Tata Motors Ltd (TMLCV).
As part of the demerger scheme, existing shareholders of Tata Motors as of October 14 will receive one share of TMLCV for every share of Tata Motors held. The new TMLCV shares are expected to be credited to demat accounts within 30 to 45 days, and will list separately on the BSE and NSE, most likely by November 2025, once regulatory clearances are complete.
The original listed entity, which now holds the passenger vehicle and JLR businesses, has been renamed Tata Motors Passenger Vehicles Ltd (TMPV). Its new scrip ID ‘TMPV’ is already reflecting on the stock exchanges following the adjustment earlier this month.
Structure of the Two Entities
The demerged commercial vehicle company, TMLCV, will include trucks, buses, defence mobility, and other allied operations. It will also house subsidiaries such as Tata Daewoo Mobility and TML Smart City Mobility Solutions.
Significantly, the CV arm is also expected to handle Tata’s €3.8 billion proposed acquisition of Iveco Group NV’s commercial vehicle operations, a deal analysts say could triple combined revenues and strengthen the group’s global foothold in electric and alternative fuel transport.
The passenger vehicle side — now TMPV — retains the fast-growing segments: domestic passenger cars, EVs, and luxury vehicles under JLR. Tata has positioned these as its core growth engines, benefiting from India’s expanding EV ecosystem and global luxury demand.
Brokerages have largely welcomed the move as a value-unlocking exercise. According to SBI Securities, TMPV could trade in the ₹285–₹384 range, while TMLCV’s valuation could lie between ₹320–₹470.
Analysts at YES Securities said the split enables investors to focus on two distinct business cycles — passenger and commercial — each with “its own set of risks, capital requirements, and growth opportunities.”
Tata Motors first unveiled its plan to demerge in March 2024, following board approval in August 2023. The goal, the company said, was to bring operational independence, enable faster decision-making, and improve capital allocation.
The record date of October 14, 2025, was fixed to determine eligible shareholders for receiving TMLCV shares. The demerger became effective from October 1, with the stock adjustment taking place on October 14 during a special price discovery session.
Following the name change, TMPV shares opened at ₹400 apiece on October 14 and were trading at ₹406.25 as of 9:50 am on Friday, showing marginal gains of nearly 2% since relisting.
Market experts expect both stocks to soon reflect their respective business fundamentals — with TMPV benefiting from rising EV adoption and JLR’s turnaround, and TMLCV gaining from strong infrastructure and fleet demand.
Industry observers see the move as a natural evolution for the 80-year-old automaker. By creating two focused entities, Tata Motors aims to sharpen business priorities — with TMPV accelerating India’s passenger EV revolution and TMLCV driving heavy-duty and commercial mobility innovation worldwide.
As the two companies now embark on independent journeys, investors and industry watchers alike are keenly awaiting the dual listing next month, which could set a new benchmark in India’s corporate restructuring landscape.
