The chairman emphasized a twin-engine growth strategy and a long-term vision at the listing ceremony of the commercial vehicle business at the Bombay Stock Exchange in Mumbai on Wednesday.
12 Nov 2025 | 5321 Views | By Shahkar Abidi, Ketan Thakkar
In a move that marks the most significant restructuring in its modern history, Tata Motors has formally listed its Commercial Vehicles Company (TMCV) on the Bombay Stock Exchange — a separation that Chairman N. Chandrasekaran described as “a defining moment in Tata Motors’ journey and a significant milestone for the ...
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In a move that marks the most significant restructuring in its modern history, Tata Motors has formally listed its Commercial Vehicles Company (TMCV) on the Bombay Stock Exchange — a separation that Chairman N. Chandrasekaran described as “a defining moment in Tata Motors’ journey and a significant milestone for the Tata Group.”
The listing is not just a symbolic event but a strategic reorganisation, seven to eight years in the making, designed to create two financially independent, operationally focused entities. The goal: unlock value, sharpen accountability, and accelerate investments in new-age mobility technologies.“It was clear to me eight to nine years ago that this company had to have a different path,” Chandrasekaran said. “It has had its heydays, and it has had its problems. We had to go through a major transformation journey, which we did.”
Future Priorities: Technology, Energy Transition and Fiscal Strength
With the listing complete, Chandrasekaran said the focus now shifts to building the next-generation commercial vehicle business anchored in technology, energy transition, and financial prudence.“Tata Motors Commercial Vehicles has always innovated. They have been the backbone of the Indian economy, and they will be more so going forward,” he said.
The CV business, now debt-free, is positioned to deploy capital into electrification, hydrogen trucks, and new-energy buses.“We made the company debt-free, which has enabled them to be very bold,” Chandrasekaran said. “Hopefully, we should close the Iveco transaction in the next few months. Then Tata Motors Commercial Vehicles will be on its journey.”
He added that the company’s robust balance sheet allows it to pursue industry-leading return ratios and capital efficiency.“They will have fantastic balance-sheet ratios, return ratios on capital deployed. And that journey will give them enormous ability to invest and make the transformation that is required for the new sustainable mobility.”
Strategic Rationale: From One Engine to Two Powertrains of Growth
Chandrasekaran explained that the decision to separate commercial and passenger vehicle arms stemmed from fundamentally different financial and business structures.
“The fact of the matter is, Tata Motors Commercial Vehicles was always profitable, and Tata Motors Passenger Cars was not so,” he said. “There was always support for passenger cars from the performance of commercial vehicles. Cash flows from commercial vehicles were subsumed into passenger vehicle capital expenditure.”
For decades, this internal dependence blurred performance metrics and limited capital efficiency. The new structure, he said, gives both entities the freedom to compete, invest, and grow on their own balance sheets. “We had to make sure both companies were fit. And we said, directionally, both have to become very strong, then we will increase the speed.”He underscored that the two businesses now have distinct identities — from technology and customer segments to dealer networks and investors.Both companies have different technologies. They have different business models. They have different platforms. They have different customer segments. They have different dealer partners. They have different investors. And they have the right to pursue different ambitions.”
The Seven-Year Journey of Restructuring
The listing follows one of the most comprehensive corporate transformations in Indian automotive history.“The number of corporate actions and restructuring that we have done in Tata Motors, with all humility I will say, is tough to find elsewhere,” Chandrasekaran said.
Since 2017–18, Tata Motors has restructured its ADR and DVR instruments, separated core functions and engineering divisions, and aligned leadership around two independent profit centres. “Halfway through the journey, we hit COVID. So, we had to slow-pedal a bit, then picked up momentum post-COVID. And now we have come to this day where we will have two strong independent companies — Tata Motors
Passenger Cars, Shailesh heading it, and Tata Motors Commercial Vehicles, Girish heading it.”
The chairman acknowledged the “enormous amount of work and heavy lifting” by teams and partners across banking, advisory, and vendor ecosystems who supported the process even before the demerger was publicly announced.
Leadership and Legacy
Chandrasekaran credited former leaders Ravi Kant and Ravi Pisharody for shaping the company’s CV legacy and commended the current leadership under Girish Wagh. “I can’t be more proud of the Tata Motors team. Both companies have a very exciting future. We will be behind them — to support them, challenge them, and push them to create benchmark companies.”
Concluding his address, the chairman reaffirmed that the listing marks not an end, but a new beginning.
“This is truly a defining moment in Tata Motors’ journey — a milestone that positions both companies to pursue their ambitions independently and shape the future of mobility.”