Tata Motors, India's largest commercial vehicle manufacturer and third-largest passenger vehicle manufacturer, has announced a major restructuring plan to demerge the company into two separate publicly traded companies — one for commercial vehicles and the other for passenger vehicles, which will include electric vehicles and Jaguar Land Rover. The demerger is aimed at unlocking more value for its businesses and will be implemented through a National Company Law Tribunal (NCLT) scheme of arrangement.
All shareholders of Tata Motors will have an identical shareholding in both the newly listed entities, and the demerger is not expected to have any adverse impact on employees, customers or business partners. The company's board has approved the proposal, and the necessary shareholder, creditor and regulatory approvals are expected to take 12–15 months to complete. This move comes after Tata Motors surpassed Maruti Suzuki India on the stock market to become the most-valued automaker in India in terms of market capitalization.
