Tata Motors splits commercial and passenger vehicle businesses

Tata Motors decided to split commercial and passenger vehicle businesses into separate entities to enhance focus and efficiency and leverage the different opportunities offered by each vertical. The demerger may take between 12 to 15 months to complete.

After the split, one company will house all passenger(PV)  and electric vehicles (EV), JLR businesses, and all related investments. The commercial vehicles and associated investments will be pulled under another brand name.

On January 30th, 2024, Tata Motors overtook Maruti Suzuki to become the country’s most valuable vehicle manufacturer after seven years. It is also the market leader in the commercial vehicles (CV) domain, where it manufactures trucks, vans, and buses.

JLR currently accounts for 70% of Tata Motor’s overall revenue. It helped the company report its first annual profit in the Financial Year 2022-2023 after five years. This demerger reflects Tata’s confidence in its PV vertical to thrive in that domain.