Mumbai: Tata Motors announced on Tuesday that its board has approved the establishment of a new wholly-owned subsidiary to manage its commercial vehicles business. The proposed name for the new unit is TML Commercial Vehicles Ltd (TMLCVL), as disclosed in a regulatory filing by the company.

The entity will function as a wholly-owned subsidiary under Tata Motors. This decision comes after Tata Motors' earlier announcement in March of this year to demerge its commercial and passenger vehicle segments into two distinct listed entities. This strategic move aims to enhance focus and capitalize on growth opportunities within each segment.

Under the restructuring plan, the commercial vehicle business and its associated investments will be consolidated into TML Commercial Vehicles Ltd. Meanwhile, the passenger vehicle business, including electric vehicles, Jaguar Land Rover, and their respective investments, will be housed in a separate listed entity.

This initiative is expected to streamline operations, enhance operational efficiencies, and drive sustained growth in both the commercial and passenger vehicle segments.

Tata Motors Ltd., a flagship company of the Tata Group, is India's largest automobile manufacturer with operations spanning commercial and passenger vehicles, electric vehicles, and defense solutions. Established in 1945, Tata Motors has a rich legacy of pioneering automotive technology in India. The company has a diverse product portfolio that includes trucks, buses, utility vehicles, and cars. Tata Motors is renowned for its innovation in the automotive sector, particularly with the introduction of affordable electric vehicles under the Tata Nexon EV and Tata Tigor EV brands. The company also owns iconic British brands Jaguar Land Rover, which have a global presence and contribute significantly to Tata Motors' revenue and brand equity. With a commitment to sustainable mobility and innovation, Tata Motors continues to play a pivotal role in shaping the future of the Indian automotive industry.

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