Tata Motors revealed plans to divide into two separate listed entities, with one dedicated to commercial vehicles and the other to passenger cars, including its electric vehicle (EV) business and subsidiary Jaguar Land Rover (JLR). This strategic move aims to enhance growth prospects and operational agility for each business segment.
“This demerger is a logical progression of our strategy. We have already separated the operations of our commercial and passenger vehicle businesses in 2021, each with its own CEO,” Tata Motors stated.
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The company emphasized the significant synergies across passenger vehicles, EVs, and JLR, particularly in areas such as EV technology, autonomous vehicles, and vehicle software, which the demerger will enable them to harness more effectively.
“Tata Motors has undergone a remarkable turnaround in recent years. The demerger will enable our automotive business units to capitalize on market opportunities more effectively, enhancing focus and agility,” said N Chandrasekaran, Chairman of Tata Motors.
Shareholders will retain identical shares in both new companies, maintaining their investment exposure to Tata Motors’ diversified business segments.
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Additionally, Tata Motors is considering spinning off its battery cell subsidiary Agratas, which could potentially raise funds and go public in Mumbai. Agratas, a wholly-owned subsidiary of Tata Motors, recently announced plans for a battery cell factory in India with an initial annual capacity of 20 GWh, with another factory planned in the UK.
Tata Motors has established itself as India’s most valuable carmaker, driven by its strong presence in SUVs and EVs. The company aims to launch ten electric models by March 2026. However, JLR, also owned by Tata, has adjusted its EV strategy, planning to launch four full battery electric vehicles (BEVs) by 2026 instead of the previously announced six. The Jaguar I-Pace currently represents JLR’s sole electric vehicle offering.
