Tata Motors Chairman N. Chandrasekaran has finally broken his silence on one of the group’s most talked-about strategic moves the demerger of Tata Motors. Speaking on the sidelines of investor interactions and through media channels, Chandrasekaran confirmed that the demerger is fully on track and expected to conclude within 12–15 months, subject to regulatory approvals. The aim? Unlocking value and sharpening business focus across verticals.

For shareholders, this isn’t just another corporate event it’s the birth of two specialized powerhouses. Tata Motors Ltd. will become a pure-play commercial vehicle (CV) company, while the new entity Tata Motors Passenger Vehicles Ltd will independently manage passenger vehicles (PV), electric vehicles (EV), and Jaguar Land Rover (JLR).

What Did Chandrasekaran Say?

In a clear and confident tone, N. Chandrasekaran explained that the move is a strategic evolution, not a reaction to stress.

He emphasized that while Tata Motors will remain a core brand within the group, focusing solely on CVs will enable more agile capital allocation, better market alignment, and improved execution speed.

Inside the Tata Motors Demerger Structure

Here’s how the structure will look:

• Tata Motors Ltd. will retain the Commercial Vehicle (CV) division.

• A newly formed entity Tata Motors Passenger Vehicles Ltd. will take charge of the PV, EV, and JLR businesses.

• Shareholders will receive shares in both companies in proportion to their current holdings, ensuring no dilution of ownership or value.

This model echoes similar restructuring plays in global auto majors and aligns with market expectations around segment-specific valuation.

Why This Demerger is a Game-Changer

1. Focused Strategy

Each business will now have its own leadership, funding model, and strategic roadmap. This means faster decision-making and tailored growth plans.

2. True Value Unlocking

For years, analysts argued that Tata Motors' consolidated structure undervalued JLR and EV segments. This demerger offers a direct path to re-rating each business based on its true potential.

3. Easier Capital Access for EV & JLR

These high-growth, capital-hungry verticals will now have the autonomy to raise funds independently, attract niche investors, and enter strategic partnerships faster.

What Are Brokerages Saying?

The Street is cheering the move.

• Motilal Oswal pegs the post-demerger target at ₹1,150.

• Jefferies sees upside till ₹1,200.

• CLSA estimates ₹1,180, highlighting margin recovery in JLR and India’s EV demand wave.

Brokerages especially see JLR benefitting from China’s rebound, strong EBIT trends, and sharper capital focus across business lines. Tata EV is another highlight, with India’s EV ecosystem receiving massive tailwinds from policy and demand.

Stock Price Performance: Short-Term Pressure, Long-Term Promise

Tata Motors stock has faced some profit booking recently, due to global cues and JLR margin concerns in Europe. Yet, analysts remain bullish for the long haul, recommending a buy-on-dips strategy.

With clearer business models, transparent valuation, and investor-friendly restructuring, Tata Motors is transitioning from a conglomerate discount story to a sum-of-parts opportunity.

Final Word: A Structural Shift with Strategic Depth

This demerger isn’t just about financial engineering it’s a philosophical shift. Chandrasekaran is betting big on decentralized excellence, where each business thrives on its own strengths rather than being buried under a group identity.

For investors, this is the time to track:

• Regulatory and NCLT updates

• Share swap mechanics

• JLR’s China & Europe trajectory

• Tata EV's market expansion and model launches

In essence, Tata Motors is no longer one story it’s three evolving narratives, each with its own growth engine.