Tata Motors to demerge its businesses into two separate listed companies

March 4, 2024
Category : 
Views: 381
Spread the word by Sharing:

Mumbai, Mar 4, 2024: The Board of Directors of Tata Motors Limited (TML), at its meeting today, has approved the proposal of demerger of Tata Motors Ltd into two separate listed companies housing A) the Commercial Vehicles business and its related investments in one entity and B) the Passenger Vehicles businesses including PV, EV, JLR and its related investments in another entity. The demerger will be implemented through an NCLT scheme of arrangement and all shareholders of TML shall continue to have the identical shareholding in both the listed entities. 

Over the past few years, the Commercial Vehicles (CV), Passenger Vehicles (PV+EV), and Jaguar Land Rover (JLR) businesses of Tata Motors have delivered a strong performance by successfully implementing distinct strategies. Since 2021, these businesses have been operating independently under their respective CEOs. 

The demerger is a logical progression of the subsidiarisation of PV and EV businesses done earlier in 2022 and shall further empower the respective businesses to pursue their respective strategies to deliver higher growths with greater agility while reinforcing accountability. Furthermore, while there are limited synergies between Commercial Vehicles (CV) and Passenger Vehicles (PV) businesses, there are considerable synergies to be harnessed across PV, EV and JLR particularly in the areas of EVs, autonomous vehicles, and vehicle software which the demerger will help secure. 

Chairman N Chandrasekaran said, “Tata Motors has scripted a strong turnaround in the last few years. The three automotive business units are now operating independently and delivering consistent performance. This demerger will help them better capitalise on the opportunities provided by the market by enhancing their focus and agility. This will lead to a superior experience for our customers, better growth prospects for our employees and, enhanced value for our shareholders.” 

The NCLT scheme of arrangement for the demerger shall be placed before the TML Board of Directors for approval in the coming months and will be subject to all necessary shareholder, creditor and regulatory approvals which could take a further 12-15 months to complete. The demerger will have no adverse impact on employees, customers, and our business partners.

Subscribe For Latest Updates

Sign up for the latest news and launches straight to your inbox

We promise not to spam you.

Spread the word by Sharing:
EVStory team is group of well seasoned journalists from the e-mobility segment with rich experience in the auto industry.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles from the same category:
CARS

A look at South India’s Car-buying mindset.

STORIES

Kinetic makes a leadership addition to boost its 2 wheeler business

STORIES

SIAM-SAFE Technical Conference 2024 brings together industry leaders

STORIES

Preparing future-ready talents in the automotive sector

1 2 3 131
EVStory.in - India's best EV Portal
Get a complete insight into the latest news, reports, features & in-depth analysis on the EV industry in India
Copyright 2022 EVStory LLP. All rights reserved. 
crossmenu