Team Blitz India
NEW DELHI: Tata Motors said on March 4 that the board of directors has approved the proposal of demerger of Tata Motors Ltd into two separate listed companies.
One entity will encompass the Commercial Vehicles business along with its associated investments, while the other will include the Passenger Vehicles businesses, comprising PV, EV, JLR, and their associated investments. This demerger will be executed through an NCLT scheme of arrangement. Importantly, all shareholders of TML will retain identical shareholding in both listed entities following the demerger.
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.
