Tata Motors is gearing up for a major transformation. The auto giant has officially announced plans to split its passenger and commercial vehicle businesses into two separate listed companies by October 2025, marking a big milestone in its corporate restructuring journey.
Two Companies, Two Focus Areas
Under the demerger, Tata Motors’ Commercial Vehicles (CV) business — along with its related investments — will operate as one independent entity. Meanwhile, the Passenger Vehicles (PV) arm will include not only traditional passenger cars but also Electric Vehicles (EVs), Jaguar Land Rover (JLR), and all related investments.
This strategic move aims to give each business sharper focus, faster decision-making, and more flexibility to grow in their respective markets.
Leadership Announcements
As part of this restructuring, Tata Motors revealed new leadership roles for both entities:
- Girish Wagh will head the Commercial Vehicles company — TML Commercial Vehicles Ltd — as Managing Director and CEO, effective October 1, 2025. He has also been appointed as an Additional Director on the board of the proposed CV entity.
- Shailesh Chandra will take charge of the Passenger Vehicles company as Managing Director and CEO for a three-year term starting from October 1, 2025, and continuing until September 30, 2028.
Chandra will also continue leading Tata Passenger Electric Mobility Limited, the group’s electric vehicle subsidiary, ensuring continuity in Tata’s fast-growing EV strategy.
Key Board Appointments
The company also made several top-level board appointments as part of the transition plan:
- PB Balaji, who is set to become the Global CEO of Jaguar Land Rover (JLR), will serve as a Director on the boards of both PV and CV entities.
- Sudha Krishnan has been appointed as an Additional Non-Executive Independent Director for a five-year term, starting October 1, 2025.
- Hanne Sorensen will continue to serve on the Board of Jaguar Land Rover Automotive Plc (UK).
- Kosaraju Veerayya Chowdary and Guenter Karl Butschek will join the Board of TML Commercial Vehicles Ltd.
The Road Ahead
The move is part of Tata Motors’ broader strategy to unlock value by giving each business unit more independence and agility. By separating its passenger and commercial segments, Tata aims to strengthen its position in both domestic and global markets — from India’s fast-evolving EV scene to the heavy-duty truck business that drives much of the country’s logistics sector.
The demerger is expected to be completed by October 2025, subject to regulatory approvals.
