Tata Motors has officially split (demerged) into two separate companies — one for Passenger Vehicles (PV) and the other for Commercial Vehicles (CV). This split took effect from October 14, 2025, and here’s what it means in simple terms.

Key Points for Shareholders

• 1:1 Share Split:
  Every Tata Motors shareholder as of October 14 received one share of Tata Motors Commercial Vehicles Ltd (TMLCV) for each share they held in Tata Motors. So, if someone had 100 Tata Motors shares, they now have 100 shares of Tata Motors (PV) and 100 shares of TMLCV (CV).

• Current Shares Now Represent:

  • Tata Motors (PV) – this includes the passenger car, electric vehicle (EV) division, and Jaguar Land Rover (JLR) business.

  • Tata Motors Commercial Vehicles (TMLCV) – this holds the trucks, buses, and commercial vehicle operations and a stake in Tata Capital. It will also integrate Iveco Group’s CV business by 2026.

• Listing Update:
  The new TMLCV shares are expected to be listed on NSE and BSE by November 2025, within 45–60 days after regulatory filings.

Effect on Share Price

• Before the split, Tata Motors traded at 660.75.
  After the demerger, the PV unit stock opened around 400, meaning the CV unit’s implied value is around 260.75 per share.

Why This Matters

• The split allows each business to grow independently:

  • PV division can focus on EVs and JLR global growth.

  • CV division can focus on commercial dominance and new acquisitions.

• Investors now get clearer value discovery, as both firms can be valued and traded separately.

In short, the demerger gives Tata Motors investors two strong, focused companies, allowing each to unlock better value and growth potential in its respective automotive segment.

source livemint