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Tata Motors To Be Named Tata Motors Passenger Vehicles, Effective October 24

Tata Motors restructures into two entities; Tata Motors Passenger Vehicles listing to go live from October 24.

Tata Motors To Be Named Tata Motors Passenger Vehicles, Effective October 24

In the final week of September, Tata Motors made a significant strategic announcement regarding the restructuring of its operations. And from October 14 onwards, the company was split into two separate entities - Tata Motors Passenger Vehicles and TML Commercial Vehicles. However, the passenger vehicles arm was still listed on stock exchange as Tata Motors and not Tata Motors Passenger Vehicles. Effective October 24, the name will be changed to Tata Motors Passenger Vehicles along with a new logo.

The company revealed that its Commercial Vehicle (CV) division, along with all associated investments, will be consolidated under one dedicated entity. Meanwhile, the Passenger Vehicle (PV) business and its related assets will be housed within a separate firm to streamline operations and sharpen focus across segments.

Also, since the split happened, the share price has seen a huge fall, witnessing varied response of market participants. However, the fall in Tata Motors' share price shows the separation of the commercial vehicle business, not a loss in investor value.

As mentioned earlier, Tata Motors' latest restructuring splits its operations into two specialized entities. Tata Motors Passenger Vehicles Limited will oversee cars, SUVs, EVs, and the Jaguar Land Rover business, while the newly formed Tata Motors Limited will focus solely on commercial vehicles like trucks, buses, and pickups. This strategic division is designed to sharpen business focus and unlock greater value across India's dynamic automotive landscape.

The newly created Tata Motors Commercial Vehicles Limited (TMLCV) is set to be renamed Tata Motors Limited once it secures the necessary regulatory approvals. Until stock exchanges clear the listing, TMLCV shares will remain unlisted - a process typically taking 45 to 60 days. Meanwhile, the previous derivative contracts expired on Monday, and fresh F&O contracts for Tata Motors Passenger Vehicles Limited (TMPVL) began trading on Tuesday. TMLCV, however, won't be available for F&O trading right away.

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