October 3, 2025:
Tata Motors Limited (TML) has officially completed the demerger of its Commercial Vehicles (CV) business, transferring the entire unit along with related group companies to its wholly owned subsidiary, TML Commercial Vehicles Limited (TMLCV).
Record Date Announced for Share Allotment
In furtherance of the demerger, Tata Motors has fixed Tuesday, October 14, 2025, as the Record Date to determine the shareholders eligible for the share allotment in TMLCV.
Each eligible shareholder of Tata Motors will receive 1 (one) fully paid-up share of TML Commercial Vehicles Ltd (face value ₹2 each) for every 1 (one) share held in Tata Motors (face value ₹2 each) as on the Record Date.
This ensures that existing shareholders retain equal ownership in both the passenger and commercial vehicle entities.
Subsidiaries Transferred to TMLCV
The demerger covers several direct and indirect subsidiaries, including:
- Tata Motors Insurance Broking and Advisory Services Ltd
- Tata Hispano Motors Carrocera S.A.
- Tata Motors Body Solutions Ltd
- TMF Holdings Ltd
- TML CV Holdings Pte. Ltd
- TML Smart City Mobility Solutions Ltd
- Tata Daewoo Mobility Company Ltd (South Korea)
- PT Tata Motors Indonesia
All were 100% owned subsidiaries of Tata Motors and now come under TMLCV.
Associates and Joint Ventures Moved
TMLCV will also take over Tata Motors’ stakes in several associate companies and joint ventures, such as:
- Tata Hitachi Construction Machinery Co. Pvt. Ltd. – 39.99%
- Automobile Corporation of Goa Ltd. – 49.77%
- Freight Commerce Solutions Pvt. Ltd. – 42.11% (fully diluted)
- Tata Cummins Pvt. Ltd. – 50%
- Tata Motors Digital.AI Labs Ltd. – 50%
Strategic Purpose of the Demerger
This demerger is part of Tata Motors’ long-term strategy to create independent, focused business entities for Passenger Vehicles (PV) and Commercial Vehicles (CV).
By separating these divisions, Tata Motors aims to:
- Enhance operational agility
- Enable targeted investments
- Improve transparency and accountability
- Unlock shareholder value for the long term
The restructuring will also allow both entities to pursue distinct growth paths aligned with their respective market segments.
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