Market Performance
Tata Motors share price continued to stay under pressure in Wednesday’s session, marking its fourth straight day of losses. The stock slipped as much as 1.38% to ₹688.50 apiece on the BSE, extending a week-long downtrend.
Over the last four sessions, Tata Motors shares have declined by more than 4%, reflecting investor caution as the company approaches its demerger record date next week.
The broader market sentiment around stock market today remained mixed, with auto stocks witnessing some profit booking after a strong quarterly performance across the sector.
Main News: Tata Motors Demerger in Focus
The much-awaited Tata Motors demerger officially came into effect on October 1, 2025, marking a key milestone in the automaker’s restructuring journey.
Under the approved scheme of arrangement, the company’s Commercial Vehicles (CV) business has been separated into a newly formed entity — TML Commercial Vehicles Limited (TMLCV).
Meanwhile, the Passenger Vehicles (PV) business — which includes electric vehicles and Jaguar Land Rover (JLR) operations — will continue under the existing company, which is now set to be renamed Tata Motors Passenger Vehicles Limited.
The record date for Tata Motors’ demerger is set for October 14, 2025 (Tuesday). On this day, the company will identify eligible shareholders for the split — a move that marks one of the most significant structural milestones in Tata Motors’ journey.
Share Entitlement Ratio
The share entitlement ratio under the Tata Motors demerger is set at 1:1, meaning:
- Shareholders will receive one fully paid-up share of ₹2 each in Tata Motors Commercial Vehicles Limited (TMLCV)
- For every one share held in Tata Motors
This equal distribution ensures parity and transparency for existing investors, giving them direct exposure to both the passenger and commercial vehicle businesses post-demerger.
Company Details: JLR Sales Impact
Alongside the restructuring, Tata Motors reported its second-quarter performance for subsidiary Jaguar Land Rover (JLR). The quarter, which ended 30 September 2025, saw a noticeable dip in sales volumes, largely driven by external disruptions.
The company cited three primary reasons:
- A cyber incident that temporarily disrupted production and logistics
- The planned wind-down of legacy Jaguar models ahead of the brand’s upcoming lineup
- Incremental US tariffs that impacted JLR’s exports to the American market
As a result, JLR reported:
- Wholesales: Down 24.2% year-on-year (YoY) to 66,165 units
- Retail sales: Down 17.1% YoY to 85,495 units in Q2FY26
Despite the drop, Tata Motors highlighted that its most profitable luxury models — the Range Rover, Range Rover Sport, and Defender — continue to dominate the product mix.
These three accounted for 76.7% of total wholesale volumes in Q2FY26, compared to 77.2% in the prior quarter and 67.0% a year ago. The data reflects Tata Motors’ continued focus on premium profitability even amid short-term disruptions.
Summary
To sum it up, the Tata Motors demerger is more than just a corporate action — it’s a structural evolution aimed at giving both business verticals independent growth paths.
While the Tata Motors share price has seen short-term volatility — slipping around 4% over four sessions — the focus now shifts to how each new entity positions itself post-demerger.
The record date of October 14, 2025, will mark the next key moment for investors as the separation between Tata Motors Passenger Vehicles Limited and TML Commercial Vehicles Limited takes full effect.
As the stock market today continues to digest these developments, the demerger stands as a defining event for one of India’s most iconic automotive brands — setting the stage for two focused, independently managed businesses built for the next phase of mobility growth.
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