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Tata Motors shares have dipped for six days in a row. The price dropped from Rs. 718 to Rs. 679 on the NSE. This fall comes as the company prepares for its demerger.
The demerger record date is October 14, 2025. Shareholders who hold Tata Motors shares on this day will get one share of Tata Motors Commercial Vehicles Ltd (TMLCV) for every share they own.
The demerger will split Tata Motors into two companies. TMLCV will handle commercial vehicles. It is India’s biggest commercial vehicle maker with a 37% market share. The company earned well in the first quarter of FY26 and will also benefit from the €3.8 billion Iveco acquisition.
The other company, Tata Motors Passenger Vehicles (TMPV), will include passenger vehicles, electric vehicles, and Jaguar Land Rover. The passenger vehicle market in India is expected to grow 8% - 10% in the second half of FY26. Strong SUV sales and rising demand for EVs and CNG cars will help this growth.
Experts say the recent fall in Tata Motors shares is due to short-term market worries, not the company’s performance. The 1:1 share swap in the demerger could give long-term investors a chance to gain value.
The market may stay volatile until the demerger is complete. Share prices might move up and down until both companies start trading separately in early November. But some see the current low price as a chance to buy shares before the split.
The demerger starts on October 1, 2025. TMLCV and TMPV shares will begin trading separately in early November. This move will allow the investors to enjoy the benefits of both commercial and passenger vehicles.
In short, the recent drop in Tata Motors shares could be a good buying chance for those thinking about long-term gains. But investors should remember that prices can be unstable until the companies are listed separately.
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