 "Bharat Mobility Global Expo 2025: Tata Motors demerger by mid-FY26")
Tata Motors’ much-talked-about demerger into two entities – Tata Motors Commercial Vehicles Ltd (TMLCV) and Tata Motors Passenger Vehicles Ltd (TMPV) – is expected to take place by the middle of 2025-26, said a top company executive on Friday. Within the company, these divisions are already functioning separately.
The company's commercial vehicle division proved a star attraction on the first day of the Bharat Mobility Expo 2025, with the showcasing of 14 smart vehicles, all integrated with Advanced Driver Assistance Systems, alongside six cutting-edge intelligent solutions that provide real-time performance insights, and four advanced aggregates. The product range was spread across various powertrain options, including diesel, biodiesel, compressed natural gas, liquefied natural gas, ethanol, battery electric, and hydrogen internal combustion engine.
This comes at a time when Tata Motors is looking for the proposed restructuring to provide more impetus to the CV business and help it pursue its own strategic objectives.
"Demerger is very much on track, and we are progressing according to plan. By the middle of the next financial year, we should have the two companies demerged, getting listed separately and operating as two listed entities," said Girish Wagh, the company’s executive director who also heads the CV division. "Internally, we are already operating the two business units separately. From a governance point of view, we are ready. We are geared up and excited," he added. The company's board had cleared the demerger proposal on August 1, 2024.
At the same time, reports indicated that Tata Motors Passenger Vehicles (TMPV), which includes PV and Electric Vehicle (EV) segments, along with Jaguar Land Rover (JLR), would merge into the existing listed entity, Tata Motors Ltd (TML).
The products that the company has launched include the Tata Ace Pro, available in multiple powertrain options, and the Intra EV. "Our next-generation hydrogen-powered Prima Truck is set to revolutionise long-haul trucking. We are showcasing the Prima deep mining tipper with state-of-the-art technologies. In addition, on display are an array of green mobility solutions powered by a variety of decarbonising technologies – hydrogen, electric, natural gas, and flex fuel," Wagh added.
Asked about the CV industry’s poor showing in 2024-25, not even reaching the pre-Covid level, he said customers were shifting towards high-end vehicles in the CV space. "We have been looking at the industry only from a volume perspective; in volume terms, we are yet to achieve the peak of 2018-19. However, in terms of the tonnage being transported, there has been a significant increase. In each segment, there has been a clear transition towards the higher end," he said.
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However, Wagh highlighted that tonnage capacity had seen a significant increase, and in terms of revenue, the industry had grown at a 7 per cent compound annual growth rate between 2018-19 and 2023-24, despite flat volume growth.
Wagh expects the growth in the industry to be back on track in 2025-26. "During the first quarter, we saw a growth of 4 per cent despite elections, but the second quarter saw a double-digit decline, especially because of heavy rains impacting consumption. We are keenly looking forward to the fourth quarter and expecting it to be flat on a Y-o-Y basis," he added.