Tata Motors' demerger of CV, PV businesses to secure synergies across biz verticals: Chairman N. Chandrasekaran

N Chandrasekaran, Chairman, Tata Motors

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26 Aug, 2025 12:21

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The recently-announced demerger of existing automotive businesses into two listed entities will help in securing synergies across Tata Motors' Passenger Vehicle and JLR verticals in areas of EVs and autonomous vehicles, the automaker's Chairman Natarajan Chandrasekaran said in the company’s 79th Annual General Meeting.

In his view, the initiative will lead each company to deliver a “superior experience” for customers, “better growth prospects” for employees and “enhanced value for shareholders.

“To enable sharper execution of their well differentiated strategies and to further empower each business to pursue it purposefully with greater agility and accountability, the Board has proposed the demerger of the Company into two separate listed companies housing A) the Commercial Vehicles business and its related investments in one entity and B) the Passenger Vehicles businesses including PV, EV, JLR and its related investments in another entity,” stated Chandrasekaran.

It may be recalled that in March this year, the Mumbai-based automaker announced a value-unlocking exercise to demerge its Passenger and Commercial Vehicles segments into two separate listed entities.  part of the initiative, the CV business and its related investments would be part of one entity. Similarly, PV business, including electric vehicles, Jaguar Land Rover and its related investments, will come under a separate listed entity.

"This (demerger) will also help secure the considerable synergies across Passenger Vehicle, Electric Vehicle and Jaguar Land Rover (JLR) particularly in the areas of EVs, autonomous vehicles, and vehicle software," added the Tata Motors chairman, who is also the Chairperson of the Tata Group.

While apprising its shareholders, Chandrasekaran affirmed that going ahead all three businesses will continue to focus on improving their financial strength and enhancing customer experience. He noted, “The strategies they will adopt will get more differentiated, sharpened and refined in line with their market position, brand strength and growth aspirations.”

Over recent years, Tata Motors' CV, Passenger Vehicles (PV+EV), and Jaguar Land Rover (JLR) businesses have implemented distinct growth strategies and since 2021, these businesses have been functioning independently under their respective CEOs, as revealed by the company earlier.

While talking about the PV business, Chandrasekaran said the company’s product portfolio will focus on market-beating growth, technology, and brand leadership. “We will continue to invest in products, platforms, electrical & electronic architectures, and vehicle software to remain competitive,” he noted.

He also reaffirmed that the company will be augmenting its presence in the EV business by focussing on deepening penetration through multiple product launches, market development, charging network enhancements and continuing to introduce “aspirational” product features.

Talking about its luxury arm, JLR, Tata Motors stated that it will continue to double down on its journey to become a premium luxury OEM and continue to invest in products and technologies.

“There is an exciting range of products lined up to be launched over the next three years that needs to be delivered successfully, he said, adding, “The first electric Range Rover launches later this year, and there are further EVs lined up in the coming years including the all-electric Jaguar. He also stated that the British brand shall continue to invest in products, platforms, electrical & electronic architectures and vehicle software.

He also said that Tata Motors’ Commercial Vehicle (CV) business will focus on driving technology and brand leadership to deliver consistent, value accretive growth in the coming years.

“Apart from vehicular sales, it will also focus on vehicle parc-linked businesses like spares, digital and smart mobility solutions which will help reduce the volatility of the vehicle sales business,” noted Chandrasekaran.