Tata Motors prepares for a major change because Chairman N Chandrasekaran has confirmed that the company’s demerger will create long-term value for shareholders. The 80th Integrated Annual Report for FY25 shows Tata Motors moving forward with its plan to split into two listed companies that will contain commercial vehicles (TMLCV) and passenger vehicles including EVs and Jaguar Land Rover (TML).
The Tata Motors demerger has received shareholder approval and it will become operational during the second half of 2025. The scheme allows shareholders to receive one TMLCV share for each Tata Motors share they currently possess. The strategic clarity and focus from this move will improve customer experiences while creating more rewarding roles for employees according to Chandrasekaran.
Tata Motors will continue its growth trajectory in FY26 despite facing worldwide obstacles from shifting trade regulations and inconsistent EV market adoption. The company aims to maintain growth while enhancing customer satisfaction and establishing leadership in sustainable connected transportation.
Tata Motors has started integrating AI and automation technologies into all aspects of its business operations. The implemented technologies enhance operational efficiency and safety while improving vehicle connectivity which positions the company as a leader in next-generation manufacturing.
The planned 60:40 asset distribution between TMLCV and TML supports Tata Motors’ objective to improve accountability and achieve strategic focus. The company guaranteed all stakeholders that the transition process would not affect employment or service delivery or business partnerships. The move represents a transformative development for Tata Motors while creating attractive possibilities for investors.
