Tata Motors Demerger: From Tata Motors to Tata Motors PV Limited

On 14 October 2025, Tata Motors shares started trading ex-commercial vehicles (CV) business, as the auto giant demerged its passenger vehicles and commercial vehicles business. Tuesday was the record date for determining the eligibility of the shareholders for the demerger, as it came into effect on 1 October 2025. 

As a demerger is crucial for a company, as well as its investors, here are the details of the Tata Motors demerger that you must know as a shareholder in the company. 

What is Tata Motors’ Demerger?

As per the demerger of the Tata Motors plan, the commercial vehicles segment of the business will be separated from the passenger vehicles segment. The existing Tata Motors Limited is now Tata Motors Passenger Vehicles Ltd., while the commercial vehicles segment is currently known as TML Commercial Vehicles Ltd. (TMLCV). 

This entity will be listed as a separate company on the stock exchanges by mid-November 2025, as anticipated by the company; however, no specific date has been announced yet. 

Share Entitlement

The share entitlement ratio for the Tata Motors demerger is 1:1. This means the shareholders of Tata Motors will get 1 share of TMLCV when it gets listed against 1 share they hold in Tata Motors as on the record date. This share will be fully paid up at ₹2 per share. 

Important Dates of Tata Motors Demerger

Tata Motors has been planning this demerger for a long time; here is a timeline and important Tata Motors share demerger dates – 

Board Approval for Demerger Proposal – August 2024

Shareholder Vote Order by NCLT – March 2025 (28 March Cutoff date for voting eligibility) 

Demerger Effective From – 1 October 2025

Record Date for Transferring non-convertible debentures to TMLCV – 10 October 

Record Date for Shareholders Eligibility in TMLCV – 14 October 2025

TMLCV Listing – Mid November 2025 (Date Yet to be disclosed) 

How can this demerger help the business?

Tata Motors’ demerger of commercial vehicles from the personal vehicles segment is expected to be a fruitful one, as both segments can run independently now. The domestic CV business is expected to revive with the GST 2.0 effect from the second half of this fiscal year. The demand is expected to go up as the GST reduction will come into play, and also sectors like infrastructure, logistics, and construction are expected to revive, which in turn can raise the demand for commercial vehicles.  

Tata Motors Passenger Vehicles Share Price Movement 

Tata Motors Passenger Vehicles shares are now trading at ₹396.65 per share as of 16 October at around 12 p.m. It has increased by 1.5% in today’s session until now; however, in the past five days, it has declined by 3.79% and in the past year, it has tanked by 56.3%. 

Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.