04.03.2024
Tata Motors Limited's (TML) Board has approved a demerger plan to create two independent public companies, separating the Commercial Vehicles business and the Passenger Vehicles business, which includes the electric vehicle (EV) segment and Jaguar Land Rover (JLR). The split, to be executed via an NCLT scheme of arrangement, will allow for equal shareholder stakes across both entities and is intended to enhance focus, agility, and performance in their respective markets. Chairman N Chandrasekaran highlighted the move as a strategic step following the continued success and independent operations of these units since 2021. The arrangement is expected to be presented for board approval soon, with a completion timeline of around 12-15 months pending requisite approvals, while maintaining stability for employees, customers, and business partners.
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