Tata Motors is now Tata Motors Passenger Vehicles: What investors need to know today

Tata Motors had fixed October 14, 2025, to determine the shareholders eligible to receive shares in its demerged commercial vehicle business.

In its filing, the company said, "We wish to inform you that the Ministry of Corporate Affairs (“MCA”) has issued a Fresh Certificate of Incorporation dated October 13, 2025, changing the name of the Company from “Tata Motors Limited” to “Tata Motors Passenger Vehicles Limited”.

It also said that the company was originally incorporated with the name Tata Locomotive And Engineering Company Limited.

The 1:1 demerger will create two focused entities — Tata Motors Commercial Vehicles (TMLCV) and Tata Motors Passenger Vehicles (TMPV).

As per news reports, the commercial business entity will be listed in November 2025.

Tata Motors name change: More details

"This is to inform you that the Memorandum of Association and Articles of Association of the Company have been amended and altered to reflect the new name, Tata Motors Passenger Vehicles Limited, wherever applicable."

Additionally, the company is in the process of submitting the necessary applications to the stock exchanges to update its name in their records and on their respective websites.

"Subsequently, pursuant to the scheme, TMLCV shall take the necessary steps to change its name to Tata Motors Limited in due course," the filing added.

TMLCV refers to TML Commercial Vehicles Limited.

What happened on Tuesday, October 14, 2025?

Tata Motors stock, which ended Monday's session at ₹660.90 on the BSE and at ₹660.75 on the NSE, settled at ₹400 after the special trading session that ran for 1 hour on Tuesday (from 9 AM to 10 AM). This means the stock was adjusted following the demerger. This is why the stock is trading around 40% lower than the previous close.

In late September 2025, Tata Motors said Girish Wagh and Shailesh Chandra will lead commercial vehicle and passenger vehicle entities as part of the demerger process.

The Mumbai-based auto major's commercial vehicles business and its related investments would be housed in one entity, while the passenger vehicles business, including PV (Passenger Vehicle), EV (Electric Vehicle), JLR (Jaguar Land Rover), and its related investments, will be part of the other firm.

In a regulatory filing, the company said its board has approved the appointment of Girish Wagh to the board of TML Commercial Vehicles Ltd as an Additional Director, Managing Director and CEO, effective October 1, 2025.

The automaker also appointed Shailesh Chandra as an Additional Director, Managing Director and CEO of the passenger vehicle entity company, effective October 1, 2025, for a period of three years till September 30, 2028.

Chandra will continue to serve as the Managing Director of Tata Passenger Electric Mobility Limited, the electric vehicle entity and wholly-owned subsidiary of the company, the filing said.

The company also appointed PB Balaji, who is set to join JLR as its global CEO, as a director on the boards of both PV and CV entities.

Besides, the company has appointed Sudha Krishnan as an additional, non-executive independent director of the company for a tenure of five years commencing from October 1, 2025.

Tata Motors said Hanne Sorensen will continue to be a director on the Board of Jaguar Land Rover Automotive Plc, UK, and Kosaraju Veerayya Chowdary and Guenter Karl Butschek will join the Board of TML Commercial Vehicles Ltd.

Rationale behind demerger

In early 2024, Tata Motors had said the demerger of its commercial and passenger vehicle segments into two separate listed entities would better capitalise on growth opportunities.

Tata Motors chairman N Chandrasekaran said that Tata Motors scripted a strong turnaround in the last few years. "The three automotive business units are now operating independently and delivering consistent performance," the chairman said.

"This demerger will help them better capitalise on the opportunities provided by the market by enhancing their focus and agility," the Chandrasekaran added.

The demerger would lead to a superior experience for customers, better growth prospects for employees and enhanced value for shareholders, Chandrasekaran stated.