Tata Motors has received approval from the National Company Law Tribunal (NCLT) for the demerger of its passenger and commercial vehicle businesses, marking a significant restructuring of the company. Effective October 1, 2025, this move will split Tata Motors into two distinct entities, streamline operations, and create a more focused approach for both business segments. The restructuring also includes key leadership changes and strategic financial arrangements, signaling a new phase in the company’s growth and governance.
The National Company Law Tribunal (NCLT) has approved the demerger of Tata Motors’ passenger vehicle and commercial vehicle units. Following the demerger, Tata Motors’ business will be split into two separate entities: one for passenger vehicles and the other for commercial vehicles. This restructuring will become effective from October 1, 2025.
Post-restructuring:
The current Tata Motors Limited will be renamed Tata Motors Passenger Vehicles Limited.
TML Commercial Vehicle Limited will be renamed Tata Motors Limited.
In filings submitted to BSE and NSE, Tata Motors stated that it received:
The certified copy of the NCLT order dated August 25, 2025
The rectification order dated September 10, 2025
These were presented during board meetings of Tata Motors, TML Commercial Vehicles Limited (TMLCV), and Tata Motors Passenger Vehicles Limited (TMPV) on September 26, 2025.
Additionally, Tata Motors announced the transfer of certain non-convertible debentures (NCDs) worth ₹2,300 crore to TMLCV, including listed and unsecured redeemable NCDs maturing between 2026 and 2028.
The company will notify the effective date and record date separately. On the record date, Tata Motors shareholders will receive one fully paid-up equity share of TMLCV (₹2 face value) for each fully paid-up equity share held in Tata Motors. Detailed announcements regarding this allocation will be made in due course.
As part of the process of splitting Tata Motors’ passenger and commercial vehicle businesses into separate listed companies, the board appointed Shailesh Chandra as the new MD and CEO of Tata Motors in a meeting held on September 26, 2025.
Currently, Shailesh Chandra serves as Joint MD of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility Limited. His appointment is considered a major step in Tata Motors’ restructuring process.
Tata Motors’ shares closed higher on Friday:
BSE: ₹673, up 1.32% or 8.75 points
NSE: ₹673.95, up 1.45% or 9.65 points
52-week high: ₹1,000 | 52-week low: ₹535.75
So far this year, Tata Motors’ shares have fallen by 10.05%. In the last six months, the stock declined 0.81%, and over the past year, it has dropped 32.14%.