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Tata Motors News: Tata Motors will divide its CV and PV businesses into two separately listed companies.
The divestment will help Tata Motors better manage its CV and PV businesses and develop more targeted strategies for each of them. It will also help the company improve its capital allocation and investment strategy.
Tata Motors will be divided into two companies:
Tata Motors has decided to divide its business into two separate companies. This demerger plan will convert Tata Motors into two listed companies –
- Commercial Vehicles (CV): This will include all trucks and buses of Tata Motors.
- Passenger Vehicles (PV): This will include all Tata Motors cars, Electric Vehicles (EV), and Jaguar Land Rover (JLR).
Why is this demerger happening?
Tata Motors believes that this demerger will help both businesses grow in a better way.
Commercial Vehicles: This company is the largest manufacturer of commercial vehicles in India. After demerger, this company can focus on its full potential and increase its market share.
Passenger Vehicles: Tata Motors is the third largest manufacturer of passenger vehicles in India. After demerger, this company can invest more in new areas like electric vehicles and JLR.
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What impact will this demerger have on shareholders?
All shareholders of Tata Motors will get equal shareholding in both the new companies. This means if you have 100 Tata Motors shares, you will get 50 CV company shares and 50 PV company shares.
When will this demerger happen?
This demerger is expected to happen within 12-15 months.
How will this demerger affect Tata Motors’ employees, customers, and business partners?
Tata Motors has said that this demerger will not affect the company’s employees, customers, and business partners.
What does this demerger mean for Tata Motors?
This demerger is a significant change for Tata Motors. This will help the company focus on its full potential in two different markets and better execute its growth plans.