In a major restructuring first announced in August 2024, Tata Motors’ passenger vehicle business will begin operating as a separate, independently traded company on October 14, 2025.
This follows a critical legal step: the Ministry of Corporate Affairs (MCA) issued a Fresh Certificate of Incorporation dated October 13, 2025, formally changing the name of the company from “Tata Motors Limited” to “Tata Motors Passenger Vehicles Limited.”
The reorganisation officially separates the automaker into two distinct businesses:
- The Passenger Vehicle (PV) Arm: This new entity will handle all passenger cars, including those with internal combustion engines (ICE), electric vehicles (EVs), the Jaguar Land Rover brand, and all associated technology investments.
- The Commercial Vehicle (CV) Arm: This entity will retain the truck and bus business.
Existing Tata Motors shareholders will receive equal ownership shares in both of the new entities. This split is designed to give each division a clearer focus, allow for independent growth, and provide greater transparency in valuing the distinct businesses.
- PV unit lists near Rs 400 per share; CV listing expected in November
- Pre-split Tata Motors stock closed at Rs 660.75 on Monday
- Separation aims at better, more focused investment decisions
Benefits of segment separation
Splitting the company allows investors to value the PV and CV businesses based on their own separate strengths
The PV business can be valued based on factors like electric vehicle (EV) growth, the mix of premium models and export performance. Meanwhile, the CV business can be judged on its connection to the freight industry, infrastructure spending, and the cycle of fleet owners replacing old vehicles. This separation prevents a single, combined valuation from hiding the true performance of each division.
With their own boards and funding strategies, each company can now better adjust its investments, profit goals, and return targets to fit its market reality. This makes it easier to compare their results with direct competitors and helps management focus specifically on what drives growth in their unique segment.
What changes and what to watch
PV begins independent price discovery now, CV lists in November
The demerger ensures that the stock price of each entity will now directly track its own earnings trends. The PV unit is expected to set its independent trading price band first, with the CV listing following in November.
For investors, the main watchpoints are the PV margins, influenced by the mix of SUVs/EVs, material costs, and competitor pricing and the CV margins, which are sensitive to freight rates and vehicle usage.
Final plans regarding capital, dividends and future investments from both entities will also be closely watched after the listing.
Rivan RS 
Viraaj Bhatnagar
Uday Singh
Suraj Viswanathan
