Tata Motors share is under the spotlight as the auto giant’s much-awaited demerger into its commercial and passenger vehicle businesses officially comes into effect this week. The move, which aims to unlock value and enhance operational focus, comes amid a volatile period for the Tata Motors share price, which has fallen nearly 29% in the past year.
Tata Motors Demerger: Key Highlights
The Tata Motors board had earlier approved the separation of the company into two independent listed entities—Tata Motors Commercial Vehicles Ltd (TMLCV) and Tata Motors Passenger Vehicles Ltd (TMPV). The record date for determining eligible shareholders was October 14, 2025.
Each Tata Motors shareholder will receive one fully paid-up share of ₹2 in the new TMLCV for every share held in Tata Motors, following a 1:1 entitlement ratio. After the demerger, the existing shares will represent Tata Motors Passenger Vehicles Ltd, which will include divisions such as EVs, Jaguar Land Rover (JLR), and related investments.
Chairman N. Chandrasekaran emphasized that this restructuring would bring “greater strategic clarity, agility, and value creation for shareholders.” The plan also aligns with Tata Group’s broader push toward sustainable mobility and global expansion.
Tata Motors Share Price and Market Performance
The Tata Motors share price settled at ₹664 per share on Monday, down 2.20% on the NSE. Over the last five trading sessions, the stock has dropped 6.2%. Since January, Tata Motors shares have fallen by more than 11%, and over a one-year period, the decline has widened to 29%.
Despite short-term weakness, market analysts suggest that the Tata Motors demerger could create long-term value by allowing investors to independently assess the commercial vehicle and passenger vehicle businesses.
Leadership Reshuffle Ahead of Demerger
In preparation for the demerger, Tata Motors announced key leadership changes. Girish Wagh will lead TMLCV as Managing Director and CEO, while Shailesh Chandra will head TMPV, which includes the passenger vehicle and EV segments.
PB Balaji, set to become the Global CEO of JLR, has also been appointed to the boards of both new entities. This leadership alignment signals Tata Motors’ commitment to strengthening its operational efficiency and strategic direction.
Why Tata Motors Share is Falling
The recent dip in the Tata Motors share price can be attributed to broader market volatility and short-term investor caution around the demerger. Analysts note that while the demerger process creates temporary uncertainty, it also paves the way for better capital allocation and segment-specific performance tracking.
Moreover, rising input costs, global economic slowdown fears, and competitive pressures in the electric vehicle market have added to investor concerns. However, the company’s long-term fundamentals remain strong, backed by robust EV adoption plans and improving profitability in JLR operations.
What’s Next for Tata Motors Investors
Market experts believe that the demerger will ultimately benefit shareholders as each business gains autonomy to pursue its own growth strategy. The listing of the two new entities is expected to enhance transparency and attract focused investments in their respective domains.
Investors should keep an eye on upcoming quarterly results and post-demerger performance updates. The Tata Motors share price today reflects short-term uncertainty, but the company’s structural realignment could boost its valuation in the medium to long term.
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