Tata Motors Sells 80% Stake in JLR Ventures – What’s Next?

Tata Motors Limited (TML) has officially announced the sale of its 80% stake in Jaguar Land Rover Ventures Limited (JLRV), a step-down subsidiary, to Tata Autocomp Systems Limited (TACO). The deal also includes the transfer of an 80% stake in Artifex Interior Systems Limited (AISL), a wholly owned subsidiary of JLRV. This strategic move is aimed at restructuring its subsidiary holdings and optimizing business focus.

‘Jaguar Land Rover Limited, UK (‘JLR’), a wholly owned subsidiary of Tata Motors Limited (‘the Company’), has informed that JLR (‘the ‘Seller’) and Tata Autocomp Systems Limited (‘Buyer’/’TACO’) have entered into a share purchase agreement for, inter alia., sale of its 80% stake in Jaguar Land Rover Ventures Limited (‘JLRV’) a step down wholly owned subsidiary of the Company to TACO,’ as mentioned in the exchange filing. 

Deal Overview and Financials
The agreement was signed on March 28, 2025, between Jaguar Land Rover Limited (JLR), the seller and wholly owned subsidiary of Tata Motors, and TACO. As per the agreement:

Transaction Value: TACO paid GBP 77 million (Rs 828 crore) for the 80% stake in JLRV and AISL.

Deferred Consideration: An additional GBP 6.3 million is contingent upon AISL meeting certain performance criteria specified in the agreement.

Revenue Contribution: JLRV contributed GBP 296 million (Rs 3,182 crore) to Tata Motors' revenue in the last financial year, representing 0.98% of the company’s consolidated earnings.

Net Worth Impact: The net assets of JLRV amounted to GBP 14 million (Rs 150 crore), accounting for 0.16% of Tata Motors' consolidated net worth.

Impact on Tata Motors
With this sale, both JLRV and AISL cease to be subsidiaries of Tata Motors. However, the transaction remains within the Tata Group, as TACO is a subsidiary of Tata Sons Private Limited, the promoter of Tata Motors.