Tata Motors Shifts Gears: Demerger Hits Final Lap with Fresh Name Revamp
Tata Motors’ much-talked-about demerger has hit the home stretch, and the company is giving it a stylish new identity twist to mark the milestone. In its latest corporate move, the automobile giant has officially renamed its commercial vehicles arm, TML Commercial Vehicles Ltd, as Tata Motors Ltd. The update was confirmed through a fresh Certificate of Incorporation issued on October 29, 2025, marking a key step in the company’s grand restructuring plan.
Interestingly, this comes just weeks after Tata Motors Ltd itself was renamed Tata Motors Passenger Vehicles Ltd (TMPV) on October 13, 2025. It’s all part of a well-orchestrated demerger plan designed to give each business its own road to success.
Under the approved Composite Scheme of Arrangement, Tata Motors has neatly split its operations into two independent entities, one steering the passenger vehicle and electric mobility business, and the other focusing purely on commercial vehicles.
In short, Tata Motors is pressing the accelerator on a smoother, more focused future, one brand for your sleek EVs and family rides, and another for the trucks and buses that keep India moving. A cleaner split, clearer direction, and a lot more horsepower for growth.
Tata Motors Demerger: Key Dates And Shareholder Details
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Effective Date: October 1, 2025 – The Tata Motors demerger officially came into effect.
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Record Date: October 14, 2025 – Shareholders registered on this date were eligible for new share allocations.
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Share Allotment: Investors received 1 share of Tata Motors Commercial Vehicles Ltd (TMLCV) for every 1 share held in Tata Motors Ltd.
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Resulting Structure: Post-demerger, shareholders now hold parallel stakes in Tata Motors Passenger Vehicles Ltd (TMPV) and Tata Motors Commercial Vehicles Ltd (TMLCV).
Tata Motors Share Price And Valuation: Key Highlights
- Post-Demerger Discovery Price: Tata Motors Passenger Vehicles (TMPV) listed at ₹400 per share on NSE (as of October 14, 2025).
- Pre-Demerger Price: Tata Motors closed at ₹660.75 per share before the split.
- Implied Valuation: Residual value for Tata Motors Ltd (Commercial Vehicle arm) estimated at ₹260.75 per share.
- Nomura Estimates: TMPV valued at ₹367/share, and Tata Motors (CV entity) at ₹365/share.
- Mehta Equities View: Prashanth Tapse pegs standalone Tata Motors valuation at around ₹400/share.
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Focus Areas Post-Demerger: Key Highlights
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Tata Motors Passenger Vehicles Ltd (TMPV):
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Will lead the passenger vehicle and electric mobility segments.
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Includes the rapidly expanding Tata.ev brand under its portfolio.
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Tata Motors Ltd (Commercial Vehicle Arm):
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Will focus solely on the commercial vehicle business.
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Covers trucks, buses, and fleet mobility solutions.
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Tata Motors’ Market Leadership: Key Points
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Dominant Market Share: Holds over 37% share in India’s commercial vehicle segment.
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Global Footprint: Strengthened by an international presence, including a stake in the Iveco Group.
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Post-Demerger Outlook: The commercial vehicle (CV) business is expected to be compared with pure-play peers like Ashok Leyland.
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