Tata Motors received complete shareholder backing to execute its plan of dividing the company into two independent listed entities. The Indian auto giant received support from 99.9995% of shareholders to split its passenger vehicle segment from its commercial vehicle operations including the premium Jaguar Land Rover (JLR).
The company executes this major restructuring to enable better growth opportunities and operational concentration for its business segments. The separation of luxury passenger operations from commercial activities at Tata Motors will enable the company to achieve better strategic direction and improved capital allocation and increased shareholder value.
The plan which Tata Motors announced in March 2024 will result in two independent listed companies. Shareholders will obtain equal shares in both entities which will maintain their ability to benefit from the performance of each business line.
The passenger vehicle segment which encompasses electric cars and JLR will receive additional focused innovation and consumer-centric development. The commercial vehicle arm will direct its efforts toward expanding its leadership position in the transport and logistics industry.
