Tata Motors Limited has completed its composite scheme of arrangement, marking a significant restructuring of the automotive group. The scheme, which became effective on October 1, 2025, involves the demerger of the company's commercial vehicles business into a separate listed entity called TML Commercial Vehicles Limited.
The company informed the Bombay Stock Exchange and National Stock Exchange of India that it filed the necessary documentation with the Registrar of Companies in Mumbai on Tuesday. The scheme had received approval from the National Company Law Tribunal's Mumbai bench on September 26, 2025.
Under the arrangement, shareholders of Tata Motors will receive shares in the newly formed commercial vehicles company. The company will announce the record date separately to determine which shareholders are entitled to receive the new shares. The scheme's appointed date has been set as July 1, 2025, meaning the financial effects will be recognized from that date.
Simultaneously, Tata Motors Passenger Vehicles Limited has been amalgamated into the parent company and has ceased to exist as a separate entity from October 1, 2025. This consolidates the passenger vehicles operations back into the main Tata Motors entity.
The restructuring separates Tata Motors' two main business segments—commercial vehicles and passenger vehicles—into distinct corporate structures. The commercial vehicles division will operate as an independent listed company, while passenger vehicles operations will remain within Tata Motors Limited.