Tata Motors has announced a significant corporate restructuring, marking a new chapter in its business operations. The company's commercial vehicle subsidiary, previously known as TML Commercial Vehicles Ltd., has been officially renamed to Tata Motors Ltd. This change comes as part of the approved Composite Scheme of Arrangement, with the new Certificate of Incorporation issued on October 29.

Key Details of the Demerger

The demerger process has reached several important milestones:

Impact on Shareholders

Eligible investors have received one share of the newly formed commercial vehicle entity for each share they owned in the original Tata Motors Ltd. These shares were credited to investors' Demat accounts on October 16, maintaining a 1:1 ratio as per the demerger terms.

Listing Process

The newly formed commercial vehicle company has taken steps towards public listing:

• Listing applications filed with BSE and NSE
• Approval process typically takes 45 to 60 days
• Official listing date pending, to be announced after receiving necessary approvals

What's Next

Investors and market watchers are advised to keep an eye on further announcements regarding the listing of the new entity. The completion of this demerger marks a strategic move by Tata Motors, potentially allowing for more focused operations in both the passenger and commercial vehicle segments.

As the automotive industry continues to evolve, this restructuring could position Tata Motors to better address the unique challenges and opportunities in each of these distinct markets. However, the full impact of this corporate action will become clearer once the new entity is listed and begins independent operations.

Shareholders should consult with their financial advisors to understand the implications of this demerger on their investment portfolios and any actions they may need to take in light of these changes.

Tata Motors has reported exceptional sales performance for October, marking significant growth and setting new records in various segments across both passenger and commercial vehicles. The company's strong showing during the festive season underscores its robust position in the Indian automotive market.

Passenger Vehicle Sales Highlights

Commercial Vehicle Sales Highlights

Tata Motors registered total sales of 37,530 commercial vehicle units in October, compared to 34,259 units in the same month of the previous year, marking a 10% year-over-year growth.

Key Achievements

• Record-Breaking Wholesales: For the second consecutive month, Tata Motors achieved its highest-ever monthly wholesales of 61,295 units in passenger vehicles.
• SUV Dominance: SUVs led the passenger vehicle sales chart with over 47,000 units sold, capturing a 77% share of monthly sales.
• EV Sales Surge: Electric vehicle sales reached an all-time high of 9,286 units, representing a 73.40% year-on-year increase.
• Festive Season Success: The company delivered over 100,000 passenger vehicles between Navratri and Diwali, marking a 33% year-on-year growth during the festive period.
• Commercial Vehicle Growth: The domestic sales of medium and heavy commercial vehicles reached 16,624 units versus 15,574 units in the previous year.

Model-Specific Performance

• Nexon: The popular model experienced exceptional growth, with a 50% year-on-year increase in volume.
• Harrier and Safari: These models reached new heights with 7,000 units sold, driven by the excitement around the Adventure X variant and strong traction for the Harrier EV.
• Commercial Vehicles: Combined domestic and international sales for medium and heavy commercial vehicles totaled 17,827 units compared to 16,274 units in the same period last year.

Market Reception

The company reported that monthly bookings for passenger vehicles hit an all-time peak, reflecting strong customer preference for Tata's diverse range of models and powertrain options. This surge in demand has led to record-breaking monthly registrations, indicating robust retail performance.

Tata Motors' success can be attributed to its expanding portfolio, particularly in the SUV and EV segments for passenger vehicles, as well as its strong presence in the commercial vehicle market. The company's strategy of offering multiple powertrain options across its range seems to be resonating well with Indian consumers, as evidenced by the strong performance of models like the Nexon.

The significant growth in EV sales also highlights the increasing adoption of electric vehicles in the Indian market, with Tata Motors positioned as a key player in this transition.

Corporate Update

The company's name was changed to Tata Motors Limited effective October 29, following a composite scheme of arrangements sanctioned by the National Company Law Tribunal. The equity shares will be listed on the Bombay Stock Exchange and National Stock Exchange of India Limited, with the listing process currently underway.

As the automotive industry continues to evolve, Tata Motors' performance demonstrates its ability to adapt to changing consumer preferences and market trends, setting a strong foundation for future growth in both the Indian passenger and commercial vehicle markets.