New Delhi, Nov 12 Tata Sons Chairman N Chandrasekaran on Wednesday said that the demerger of Tata Motors’ commercial and passenger vehicle businesses marks a major milestone, allowing both entities to pursue independent growth strategies after years of shared financial interdependence.
Speaking at the listing ceremony of the commercial vehicle division, Chandrasekaran said that there was always support for Tata Motors Passenger Vehicles (TMPV) from the performance of Tata Motors Commercial Vehicles (TMCV).
He added that cash flows were coming from commercial vehicles and were subsumed in the capital expenditure of the passenger vehicle segment.
The separation was essential to ensure both businesses were “fit” and “directionally strong”, he further added.
The idea of demerging the two divisions was first conceived in 2017–18, but the Covid-19 pandemic delayed the plan. It was later revived and gained momentum over the last couple of years, culminating in the official demerger earlier this year.
Chandrasekaran noted that TMCV had consistently remained profitable, while TMPV had faced financial challenges in the past. “It was clear to me 8–9 years ago that this company had to have a different path. Before splitting the company, it had to be made ready,” he said.
The shares of Tata Motors’ commercial vehicle business made a strong debut on the stock exchanges on Wednesday, listing at Rs 335 per share on NSE, up 28 per cent over the discovered price of Rs 260.75.
The commercial vehicle company kept the Tata Motors name (TML) after the split, but the passenger vehicle division was renamed Tata Motors Passenger Vehicles Ltd (TMPVL).
TMPV, which is already listed, owns a portion of Jaguar Land Rover (JLR) and includes Tata Motors' electric and passenger vehicle businesses.
In July 2025, Tata Motors revealed its intention to pay 3.8 billion euros to acquire the Italian commercial vehicle giant Iveco Group. This would be the company's largest acquisition to date and the second-largest in the history of the Tata Group. In the upcoming months, the deal is anticipated to close.
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