Tata Motors Demerger To Enhance Synergies, Says Chairman N Chandrasekaran

Tata Group chairman N Chandrasekaran at the 79th annual general meeting of Tata Motors said that the proposed demerger of its existing automotive businesses into two listed entities aims to enhance synergies between its various divisions.

What Happened: He added that the demerger would increase synergies between its Passenger Vehicles (PV) and Jaguar Land Rover (JLR) divisions, particularly in the areas of electric vehicles (EVs) and autonomous vehicles, PTI reported.

This strategic move is expected to allow each entity to focus more effectively on delivering superior customer experiences, providing better growth opportunities for employees, and enhancing shareholder value. The demerger is seen as a crucial step in positioning Tata Motors for future success in a rapidly evolving automotive landscape.

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Earlier in the company’s annual report, he had said that the demerger of Tata Motors' commercial vehicle and passenger vehicle businesses will empower each entity, bringing greater agility and accountability. He highlighted that this strategic separation is essential for implementing distinct strategies tailored to the strengths and market opportunities of each business.

In March this year, Tata Motors announced its plan to demerge its commercial and passenger vehicle segments into two separate listed entities. This strategic move aims to better position the company to leverage growth prospects and enhance overall business performance.

Price Action: Tata Motors’ share price was down 0.39% to close at ₹958.05 on Monday.

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