The Board of Directors at Tata Motors on Tuesday approved the demerger of its commercial vehicles business as a separate wholly-owned subsidiary.
Tata Motors has proposed the name as "TML Commercial Vehicles Limited" or such other name as may be approved by the Ministry of Corporate Affairs, the company informed in a regulatory filing.
The company's other business including PV, EV and JLR will remain as other entity.
Natarajan Chandrasekaran, the Chairman of Tata Motors, in the company's latest annual reported had stated that the demerger of Tata Motors’ commercial vehicle and passenger vehicle businesses will empower each business and bring greater agility and accountability to them.
In his address to shareholders in the company's 79th annual report, Chandrasekaran highlighted that the demerger is crucial to executing well-differentiated strategies for both companies. This strategic move will enable each business to focus on its unique strengths and market opportunities.