Before you start to panic and think there’s some sort of division, let us inform you that there isn’t. What’s changing is the fact that Tata Motors Cars, and Tata Motors Commercial Vehicles will now be listed as two separate companies, as opposed to being listed under the same ‘Tata Motors’ umbrella.
The Board of Directors at Tata Motors have just recently approved the proposal of a demerger between Tata’s commercial vehicle and passenger vehicle business arms. Since 2021, the three divisions of Tata Motors, i.e commercial vehicles, passenger vehicles, and JLR have been operating successfully with the implementation of their own distinct strategies under their respective CEOs.
With this demerger, the plan is to scale new levels of growth while delivering a superior experience for its customers, by further enhancing their focus on priority areas. The necessary approvals for this demerger could take 12 to 15 months; however, Tata Motors says customers, business partners, and employees shall remain unaffected.
