The long-awaited Tata Motors demerger officially took effect on Tuesday, with the automaker’s passenger and commercial vehicle businesses now listed separately on Indian stock exchanges.
Following the split, Tata Motors Passenger Vehicles (PV) shares were pegged at ₹400 after the pre-open price discovery session but soon dropped 5.53% to ₹376.90 apiece on the BSE.
How The Tata Motors Demerger Works
Under the new structure, the car-making and EV division, including Jaguar Land Rover (JLR), will operate under Tata Motors Passenger Vehicles Ltd., while the newly formed Tata Motors Ltd. (CV) will manage the truck and commercial vehicle businesses.
A special pre-market trading session from 9:00–10:00 am in Mumbai determined the initial share prices for both companies. The discovered price helps set valuation benchmarks for the new Tata Motors CV shares.
Indian stock exchanges first introduced these special trading sessions in 2023 to ensure smoother price discovery during corporate demergers.
Brokerages Peg CV Unit At ₹274 Per Share
According to Nuvama Wealth Management, Tata Motors CV shares are valued at ₹274 apiece, giving the commercial vehicle company a market capitalisation of ₹1 lakh crore.
The company set October 14 as the record date for identifying shareholders eligible to receive shares in the CV unit. Each Tata Motors shareholder will receive one CV share for every Tata Motors share held, resulting in identical shareholding across both firms initially.
The listing of Tata Motors CV shares is expected to take up to 60 days, as per the company’s October 9 exchange filing.
JLR Headwinds Amid Split
The demerger comes at a sensitive time for the group, as Jaguar Land Rover (JLR) continues to face challenges. The luxury unit has been grappling with US tariffs on UK-made vehicles and a cyberattack that forced temporary factory shutdowns globally. Some sites resumed production last week after an emergency government bailout.
On Monday, Tata Motors shares closed 2.7% lower at ₹660.75, marking the seventh straight session of decline. The stock has dropped 29% in the past year, while the benchmark Nifty 50 gained around 1% in the same period.
Global Expansion Through Iveco Deal
Despite short-term volatility, Tata Motors has been strengthening its commercial vehicle arm. In July 2025, it acquired Italy’s Iveco Group NV in a €3.8 billion ($4.4 billion) all-cash deal, expanding its global reach and positioning itself as one of the world’s top CV manufacturers.
