Tata Motors is gearing up for a major transformation. It is splitting its business into two separate listed companies – one for passenger vehicles (including electric vehicles and Jaguar Land Rover) and another for commercial vehicles. With the demerger process picking up pace and recent shareholder approval – here are five key updates on the Tata Motors demerger that investors should know.
Tata Motors demerger: Chandrasekaran’s vision – “Sharper focus, faster growth”
In the company’s 80th Integrated Annual Report, Tata Sons Chairman N. Chandrasekaran positions the demerger as the next logical chapter in Tata Motors’ turnaround.
“This separation will give each business the strategic clarity and agility it needs,” he writes, adding that a single umbrella is no longer ideal when passenger cars, electric vehicles, Jaguar Land Rover, and heavy trucks “operate in very different worlds.”
Chandrasekaran sees three big wins which include-
Customer value: dedicated teams can fine-tune products for distinct buyers from truck fleets to luxury EV owners.
Employee opportunity: parallel leadership tracks will open up, “rewarding careers at every level of the organisation.”
Shareholder returns: independent capital allocation and transparent financials should “unlock hidden value” and make it easier for global investors to benchmark each unit against focused peers.
He also flagged external challenges “volatile global trade conditions” and uneven EV adoption but insisted Tata Motors is “stepping into FY26 with confidence in our strategy, the strength of our execution, and the belief in our people.”
Tata Motors demerger: How the company will split
After the demerger, Tata Motors will morph into two separately traded shares with a face value of Rs 2 each:
- Tata Motors Passenger Vehicles (TMPV) – housing ICE cars, EVs, and Jaguar Land Rover.
- Tata Motors Commercial Vehicles (TMLCV) – covering trucks, buses, and spares.
Every current shareholder will receive one TMLCV share for every Tata Motors share they hold, while retaining their stake in TMPV.
Tata Motors demerger: Shareholder vote – near-unanimous approval
The proposal sailed through earlier this year with 99.9995 percent votes in favour. Out of 2.73 billion shares, fewer than 14,000 voted against the break-up.
Tata Motors Q4 results and dividend
Tata Motors reported a dip in its quarterly profits, the company offered a silver lining to shareholders in the form of a dividend. For the quarter ended March 2025 (Q4 FY25), Tata Motors posted a consolidated net profit of Rs 8,556 crore, a 51% decline from the Rs 17,528 crore it reported in the same quarter last year.
For the full financial year (FY25), the company’s total consolidated revenue stood at Rs 4.40 lakh crore, slightly higher than the Rs 4.34 lakh crore posted in FY24. The board proposed a dividend of Rs 6 per share, which is scheduled to be paid on or before June 24, 2025.
Tata Motors share price
Over the past five trading sessions, the share price of Tata Motors dipped by 2%. However, on a one-month basis, the stock showed resilience, gaining nearly 7%.
Zooming out to a six-month timeframe, the performance turns negative, with the stock down 8%. The broader picture over the past year also reveals a slump of around 25%.
As of the latest update, Tata Motors commands a market capitalisation of Rs 2.64 lakh crore. The stock’s 52-week high stands at Rs 1,179, while the 52-week low is RS 535.75 per share.