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Chandrasekaran: Demerger to end cross-subsidisation

Financial Express Kochi

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November 13, 2025

'STAGE SET FOR INDEPENDENT GROWTH OF CV & PV BUSINESSES'

- FE BUREAU

THE DEMERGER OF Tata Motors has brought to an end decades of cross-subsidisation between its commercial and passenger vehicle businesses, creating two independent listed entities that will now chart their own growth paths, Tata Sons Chairman N Chandrasekaran said on Wednesday.

Speaking at the listing ceremony of the commercial vehicles business, which will now be known as Tata Motors, on the BSE, Chandrasekaran said profits from the commercial vehicle arm had long fuelled the capital expenditure needs of the passenger vehicle business. The separation, he added, marks a structural transformation that will allow both companies to pursue sharper strategic goals.

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