Tata Motors finalizes demerger, announces board and leadership changes

The National Company Law Tribunal (NCLT), Mumbai Bench, has sanctioned Tata Motors' Composite Scheme of Arrangement, which will demerge its commercial vehicles business into TML Commercial Vehicles Limited (TMLCV) and amalgamate its passenger vehicles business (TMPV) into Tata Motors Limited. The scheme becomes effective October 1, 2025. Tata Motors shareholders will receive 1 fully paid-up equity share of TMLCV for every 1 fully paid-up equity share of Tata Motors Limited held, and TMLCV will be listed on stock exchanges. Additionally, ₹2,300 crore in Non-Convertible Debentures will be transferred to TMLCV.

In line with the restructuring, Tata Motors announced board changes effective October 1, 2025, including the cessation of three independent directors (Ms. Hanne Sorensen, Mr. Kosaraju Veerayya Chowdary, Mr. Guenter Karl Butschek) and the appointment of Ms. Sudha Krishnan as an additional independent director for five years. Mr. Kosaraju Veerayya Chowdary and Mr. Guenter Karl Butschek will join the board of TML Commercial Vehicles Limited.

Key managerial personnel (KMP) changes include Mr. Girish Wagh's resignation as executive director and KMP, effective October 1, 2025, to join TML Commercial Vehicles Limited as additional director, managing director & CEO. Mr. Shailesh Chandra is appointed additional director, managing director & CEO, effective October 1, 2025, for three years. Mr. P B Balaji resigned as group chief financial officer and KMP, effective November 17, 2025, and Mr. Dhiman Gupta is appointed chief financial officer and KMP, effective November 17, 2025. Mr. P B Balaji will also join as a non-executive, non-independent director from November 17, 2025. Finally, 479,746 Performance Share Units have been granted to 384 eligible employees under the Tata Motors Limited Share-based Long Term Incentive Scheme 2024.