Mumbai, March 4 -- In a major restructuring move, Tata Motors Ltd. (TML) announced that its board approved a demerger plan today. The plan will create two separate publicly traded companies, aiming to empower individual business units and unlock potential synergies across key segments.

The demerger will split Tata Motors into two distinct entities: a company focused on the commercial vehicle (CV) business and its related investments; and a company encompassing all passenger vehicle (PV) businesses, including electric vehicles (EVs) and Jaguar Land Rover (JLR), along with their related investments.

This decision follows strong individual performances by each business unit within Tata Motors over the past few years. Since 2021, the CV, PV...