Tata Motors Demerger to Boost Commercial Vehicle Business Globally: Girish Wagh

Tata Motors’ Executive Director, Girish Wagh, highlighted the benefits of the proposed demerger of the automotive business into two separate entities. He emphasized that this move will make the commercial vehicle (CV) vertical more agile and enable it to seize opportunities worldwide.

In his message to shareholders in the Annual Report for 2023-24, Wagh expressed confidence in the CV industry’s outlook for the fiscal year 2025, especially in the domestic market. He emphasized Tata Motors’ commitment to creating a world-class company in the CV space, focusing on delivering superior customer experience, fostering employee growth, and enhancing shareholder value.


The decision to demerge Tata Motors’ passenger and commercial vehicle segments into two listed entities aims to optimize growth prospects. The commercial vehicle business and its related investments will form one entity, while the passenger vehicle segment, including electric vehicles (EVs) and Jaguar Land Rover (JLR), will constitute another.

Shailesh Chandra, Tata Motors Passenger Vehicle MD, anticipates a moderation in the passenger vehicle (PV) industry’s growth rate after three years of robust expansion. He highlighted the increasing customer preference for safer, smarter, and greener vehicles, particularly those powered by CNG and batteries. SUVs are expected to remain popular, with more choices available to consumers.

The demerger is expected to create synergies across PV, EV, and JLR operations, particularly in the areas of EVs, autonomous vehicles, and vehicle software.

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