Tata Motors Demerger to Create Two Focused Entities: N Chandrasekaran

Tata Motors’ much-anticipated demerger — separating its Commercial Vehicles and Passenger Vehicles businesses (including EVs and Jaguar Land Rover) into two independently listed companies — is progressing on schedule and is expected to be completed in the second half of 2025, Chairman N Chandrasekaran confirmed in the company’s 80th Integrated Annual Report.

The company called this move a “strategic leap,” Chandrasekaran added, the demerger will empower each business to pursue its vision and execution model with greater agility and clarity.

“The proposed demerger will bring greater strategic clarity and agility, enabling a more focused approach to execution and value creation,” he stated. “It will deliver superior customer experiences, rewarding careers for employees, and long-term returns for shareholders.”

Enabling actions to streamline the corporate structure have already gathered momentum, including successfully delisting Tata Motors’ DVR shares and merging Tata Motors Finance Ltd. with Tata Capital Ltd. In early FY26, shareholders approved the demerger plan, paving the way for the operational separation. Once the demerger is completed, shareholders will receive equivalent shares in both listed entities.

Looking Ahead with confidence

Chandrasekaran expressed confidence in the company’s strategic direction as it enters FY26, despite acknowledging global uncertainties.

“We step into FY26 with confidence in our strategy, strength in our execution, and belief in our people,” he said.

He also highlighted the company’s proactive approach in responding to macroeconomic risks, evolving global trade dynamics, and the varying pace of electric vehicle adoption across markets. “We remain vigilant to worldwide volatility, including the impact of changes in global trade conditions and the varying degrees of adoption of electric vehicles across different markets and evolving technologies.”

Tata Motors aims to accelerate its production plans while focusing on delivering value. “Our focus remains on delivering consistent growth, enriching customer experience, and innovating for a cleaner, safer, and more connected mobility future,” Chandrasekaran assured.