Explained: Why Tata Motors changed its name to Tata Motors Passenger Vehicles (TMPV)

If you noticed a new name on your Tata Motors shares today, you’re not alone. The company is now officially called Tata Motors Passenger Vehicles Ltd (TMPV). The change marks the final step in Tata Motors’ plan to split its passenger and commercial vehicle businesses into two distinct companies.

So, what exactly has changed and why?

The demerger took effect on October 14, separating Tata Motors’ passenger vehicle, electric vehicle, and Jaguar Land Rover (JLR) operations from its commercial vehicle business. From here on, the passenger vehicle side of the business will operate under TMPV. As per the approved scheme, the CV business will continue under the original Tata Motors.


For shareholders, the split means everyone who owned Tata Motors shares before October 14 will receive one share of TMLCV for every share they held. These new shares are expected to reflect in demat accounts within 30–45 days. Once regulatory approvals come through, TMLCV will list separately on both the NSE and BSE, most likely next month.

After the demerger, the existing listed company has been renamed TMPV. This entity will include the passenger vehicle business, JLR, and Tata’s investments in the EV segment. The new commercial vehicle company will hold the operations along with subsidiaries such as Tata Daewoo Mobility and TML Smart City Mobility Solutions.

The commercial vehicle business will also house the proposed €3.8 billion acquisition of Iveco Group NV’s commercial vehicle operations, which could triple combined revenues and expand the company’s global exposure to electric and alternative fuel vehicles, as per experts.

Brokerages have welcomed the move as a value-unlocking exercise. SBI Securities expects TMPV to trade between Rs 285–384, while TMLCV could be valued in the Rs 320–470 range. YES Securities said the split allows investors to focus on two very different business cycles, passenger and commercial, each with its own opportunities.

Tata Motors first announced the demerger plan in March 2024, citing goals such as operational independence, faster decision-making, and better capital allocation. The passenger vehicle unit will now include domestic cars, electric vehicles, and the JLR business - areas identified as the company’s key growth engines. Meanwhile, the commercial division will continue to focus on trucks, buses, and defence mobility solutions.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)