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Time of India
6 days ago
- Automotive
- Time of India
Tata Motors Demerger: Everything You Need to Know
Indian conglomerate Tata Group is planning to split its automotive business into two listed companies—one for passenger vehicles and another for commercial vehicles. This demerger is expected to boost employment and aligns with the company's long-term growth strategy. Here are the key highlights: How will segregation work? The Tata Motors Group will be divided into two separate listed entities: Tata Motors Passenger Vehicles (TMPV) – This will include the passenger vehicle segment, electric vehicles, and Jaguar Land Rover (JLR).TML Commercial Vehicles (TMLCV) – This entity will focus exclusively on commercial vehicles. What will be the impact? Tata Sons Chairman N. Chandrasekaran described the demerger as a strategic move to accelerate business performance. 'The proposed demerger will bring greater strategic clarity and agility, enabling a more focused approach to execution and value creation—delivering superior experiences for customers, rewarding careers for employees, and long-term returns for shareholders,' he said in the company's 80th Integrated Annual Report. In FY25, a tough year for Tata Motors, commercial vehicle sales declined by 5.1 per cent year-on-year to 384,704 units, and passenger vehicle sales slipped 3 per cent to 556,367 units. When is it expected to happen? The business split is expected to be completed in the second half of 2025. According to the company's investor presentation earlier this year, the demerger is likely to be wrapped up by Q3 of FY26. Tata Motors' share division As per the Composite Scheme of Arrangement, shareholders of Tata Motors Ltd (TML) will receive- One share of TMLCV (face value ₹2) for every one fully paid-up share of ₹2 held in TML of the same class. Advisors for the Tata Motors Demerger The company has appointed key advisors to facilitate the demerger: PwC Business Consulting Services LLP – Share entitlement report providerSBI Capital Markets – Fairness opinion advisor for the share entitlement ratioAZB & Partners – Legal advisors to the transactionDeloitte Touche Tohmatsu India LLP – Tax advisors for the transaction
Time of India
7 days ago
- Automotive
- Time of India
Demerger to bring strategic clarity, long-term returns for shareholders: Tata Motors chairman
The proposed demerger of Tata Motors into two listed entities will bring strategic clarity , enabling long-term returns for shareholders, according to Chairman N Chandrasekaran . Addressing shareholders in the company's 80th Integrated Annual Report for FY25, he noted that the demerger of Tata Motors into two listed entities -- Commercial Vehicles and Passenger Vehicles (including EV and JLR) -- is progressing as planned. "The proposed demerger will bring greater strategic clarity and agility, enabling a more focused approach to execution and value creation, delivering superior experiences for customers, rewarding careers for employees, and long-term returns for shareholders," Chandrasekaran said. In early FY26, shareholders approved the demerger which is expected to be effective during the second half of 2025, with shareholders receiving equivalent shares in both entities, he added. Elaborating on the road ahead, Chandrasekaran said: "We step into FY26 with confidence in our strategy, strength in our execution, and belief in our people." "We remain vigilant to worldwide volatility, including the impact of changes in global trade conditions and the varying degrees of adoption of electric vehicles across different markets and evolving technologies, to accelerate our production plans while delivering value to our customers," he noted. The company's focus remains on delivering consistent growth, enriching customer experience, and innovating for a cleaner, safer, and more connected mobility future, Chandrasekaran stated. "As we grow, we are also embedding greater automation and AI into our operations, enhancing agility and efficiency while shaping a future-ready manufacturing ecosystem," he added. For Tata Motors, AI/Gen AI presents huge opportunities in all aspects of the business, including how vehicles are conceived, how they are built and how they operate on the road, Chandrasekaran stated. "AI in vehicles is improving safety, increasing fuel efficiency, and providing drivers with enhanced connectivity features. This is the new context in which we craft our strategies for the future," he said.
Hans India
7 days ago
- Automotive
- Hans India
Demerger to bring strategic clarity: Tata Motors Chairman
The proposed demerger of Tata Motors into two listed entities will bring strategic clarity, enabling long-term returns for shareholders, according to Chairman N Chandrasekaran. Addressing shareholders in the company's 80th Integrated Annual Report for FY25, he noted that the demerger of Tata Motors into two listed entities - Commercial Vehicles and Passenger Vehicles (including EV and JLR) -- is progressing as planned. 'The proposed demerger will bring greater strategic clarity and agility, enabling a more focused approach to execution and value creation, delivering superior experiences for customers, rewarding careers for employees, and long-term returns for shareholders,' Chandrasekaran said. In early FY26, shareholders approved the demerger which is expected to be effective during the second half of 2025, with shareholders receiving equivalent shares in both entities, he added. Elaborating on the road ahead, Chandrasekaran said: 'We step into FY26 with confidence in our strategy, strength in our execution, and belief in our people.' 'We remain vigilant to worldwide volatility, including the impact of changes in global trade conditions and the varying degrees of adoption of electric vehicles across different markets and evolving technologies, to accelerate our production plans while delivering value to our customers,' he noted. The company's focus remains on delivering consistent growth, enriching customer experience, and innovating for a cleaner, safer, and more connected mobility future, Chandrasekaran stated. 'As we grow, we are also embedding greater automation and AI into our operations, enhancing agility and efficiency while shaping a future-ready manufacturing ecosystem,' he added. For Tata Motors, AI/Gen AI presents huge opportunities in all aspects of the business, including how vehicles are conceived, how they are built and how they operate on the road, Chandrasekaran stated. 'AI in vehicles is improving safety, increasing fuel efficiency, and providing drivers with enhanced connectivity features. This is the new context in which we craft our strategies for the future,' he said.
Economic Times
24-05-2025
- Automotive
- Economic Times
Demerger to bring strategic clarity, long-term returns for shareholders: Tata Motors chairman N Chandrasekaran
The proposed demerger of Tata Motors into two listed entities will bring strategic clarity, enabling long-term returns for shareholders, according to Chairman N Chandrasekaran. Addressing shareholders in the company's 80th Integrated Annual Report for FY25, he noted that the demerger of Tata Motors into two listed entities -- Commercial Vehicles and Passenger Vehicles (including EV and JLR) -- is progressing as planned. "The proposed demerger will bring greater strategic clarity and agility, enabling a more focused approach to execution and value creation, delivering superior experiences for customers, rewarding careers for employees, and long-term returns for shareholders," Chandrasekaran said. In early FY26, shareholders approved the demerger which is expected to be effective during the second half of 2025, with shareholders receiving equivalent shares in both entities, he added. Elaborating on the road ahead, Chandrasekaran said: "We step into FY26 with confidence in our strategy, strength in our execution, and belief in our people." "We remain vigilant to worldwide volatility, including the impact of changes in global trade conditions and the varying degrees of adoption of electric vehicles across different markets and evolving technologies, to accelerate our production plans while delivering value to our customers," he noted. The company's focus remains on delivering consistent growth, enriching customer experience, and innovating for a cleaner, safer, and more connected mobility future, Chandrasekaran stated. "As we grow, we are also embedding greater automation and AI into our operations, enhancing agility and efficiency while shaping a future-ready manufacturing ecosystem," he added. For Tata Motors, AI/Gen AI presents huge opportunities in all aspects of the business, including how vehicles are conceived, how they are built and how they operate on the road, Chandrasekaran stated. "AI in vehicles is improving safety, increasing fuel efficiency, and providing drivers with enhanced connectivity features. This is the new context in which we craft our strategies for the future," he said.
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Business Standard
24-05-2025
- Automotive
- Business Standard
Tata Motors demerger to give shareholders long-term returns: Chandrasekaran
The proposed demerger of Tata Motors into two separate listed companies is expected to create strategic clarity and support long-term shareholder value, Tata Sons' chairman N Chandrasekaran said on Saturday. In the company's 80th Integrated Annual Report for FY25, Chandrasekaran shared that the separation process – creating distinct entities for commercial vehicles and passenger vehicles (which includes electric vehicles and Jaguar Land Rover) – is moving forward as expected. "The proposed demerger will bring greater strategic clarity and agility, enabling a more focused approach to execution and value creation, delivering superior experiences for customers, rewarding careers for employees, and long-term returns for shareholders," he said. The demerger -- already approved by shareholders earlier this month -- is set to become effective in the second half of 2025. Shareholders will receive equivalent shares in both newly-listed companies. Looking ahead to FY26 Commenting on the company's future direction, Chandrasekaran said: "We step into FY26 with confidence in our strategy, strength in our execution, and belief in our people." He added that Tata Motors is keeping a close watch on global uncertainties, such as shifts in international trade and varying adoption rates of electric vehicles in different countries. "We remain vigilant to worldwide volatility, including the impact of changes in global trade conditions and the varying degrees of adoption of electric vehicles across different markets and evolving technologies, to accelerate our production plans while delivering value to our customers," he said. The company aims to maintain steady growth, improve customer satisfaction, and drive innovation in safer, cleaner, and more connected transport solutions. Embracing AI and automation Chandrasekaran noted that Tata Motors is also increasing the use of automation and artificial intelligence to boost operational agility and prepare its manufacturing systems for the future. "As we grow, we are also embedding greater automation and AI into our operations, enhancing agility and efficiency while shaping a future-ready manufacturing ecosystem," he said. He highlighted the significant opportunities AI and generative AI bring to every part of the business – from the design and manufacturing of vehicles to their performance on the road. "AI in vehicles is improving safety, increasing fuel efficiency, and providing drivers with enhanced connectivity features. This is the new context in which we craft our strategies for the future," Chandrasekaran added. Tata Motors demerger: Key details Under the plan, Tata Motors will divide its commercial vehicles business, including all associated assets, staff, and investments, into a new entity named TMLCV. At the same time, the existing passenger vehicles business (TMPV) will be merged back into Tata Motors Limited (TML), which remains listed. As per the agreed scheme, for every fully paid share of ₹2 held in TML, shareholders will get one fully paid share of ₹2 in TMLCV. This is referred to as the 'Entitlement Ratio'. Once the demerger is effective, both TMLCV and TML will be renamed, resulting in two independently listed companies. The demerger and merger will occur at the same time, on what is termed the 'Appointed Date'. The asset split between the two new companies is expected to be in a 60:40 ratio. Tata Motors has said that the restructuring would allow both businesses to pursue their distinct goals more effectively, strengthen responsibility within each unit, and improve value for shareholders. The company also clarified that there would be no negative effects on employees, customers, creditors, or partners.
