Tata Group is splitting its automobile business into two listed entities, separating its commercial vehicle (CV) unit from its passenger vehicle (PV) arm, which will house the money-making Jaguar Land Rover (JLR).
Once the restructure comes into effect, the group will have four entities from the automotive space listed on the bourses. Apart from the CV and PV entities, the other two listed companies are Tata Technologies and Automobile Corporation of Goa. Current listed entity, Tata Motors, will continue to retain the CV business and its related investments such as Daewoo while the other company will house the PV business and its related investments including JLR. There is no clarity whether the other company will be an operating or holding entity of the PV business. Currently, the different segments of the PV business, such as the domestic electric cars, the domestic internal combustion engine four wheelers (Harrier) and international luxury products (Jaguar, Range Rover) are subsidiaries of Tata Motors.
Since 2021, the India CV and PV businesses as well as the international luxury vehicle unit, JLR, has been run independently under separate CEOs. Tata Motors posted its first profit in five years in FY23, benefiting from the strength of its JLR business.