Tata Motors Share Price Falls After Demerger: What Investors Need to Know

Tata Motors — one of India’s largest automobile manufacturers — has been in the news due to its major demerger move. The Tata Motors share price has seen volatility, leaving investors wondering: Why is Tata Motors falling today? Let’s understand the reasons behind the Tata Motors share fall, the demerger details, and what lies ahead for shareholders.

📉 Tata Motors Share Price Today

As of today, the Tata Motors price trades around ₹ 400–₹ 420 after adjusting for the Tata Motors demerger. Earlier, the Tata Motors stock traded near ₹ 690 before the separation of its commercial vehicle business.

The sharp drop is not a crash but a technical adjustment following the demerger of Tata Motors. On the record date (14 October 2025), the stock began trading ex-commercial vehicle business, meaning the value of that business is now separated into a new company — TMLCV (Tata Motors Commercial Vehicles Limited).

Why Tata Motors Share Is Falling Today

Many investors are asking, why is Tata Motors falling today? The main reason is the demerger adjustment. After the Tata Motors split, the share now represents only the passenger vehicle (PV) and Jaguar Land Rover (JLR) businesses.

Other reasons behind the fall in Tata Motor share price today include:

Market Uncertainty
Major restructuring often brings temporary volatility in large-cap stocks like Tata Motors stock.

Market Adjustment Post-Demerger
The Tata Motors share price has been recalculated based on its new structure. Investors will also receive shares of TMLCV in a 1:1 ratio, which balances the overall value.

Global Headwinds and JLR Slowdown
Tata Motors news recently highlighted a decline in JLR’s quarterly sales following a cyber incident, impacting investor sentiment.

Short-Term Profit Booking
Many traders exited positions after the record date, creating short-term selling pressure in Tatamotors share.

🏗️ Tata Motors Demerger Details

The demerger of Tata Motors aims to create two independent companies for better focus and valuation:

• Tata Motors Passenger Vehicles Limited (TMPV) – handling passenger vehicles, EVs, and Jaguar Land Rover.
• TML Commercial Vehicles Limited (TMLCV) – managing trucks, buses, and heavy commercial vehicles.

Key Highlights:

• Record Date: 14 October 2025
• Demerger Ratio: 1:1 (One TMLCV share for every Tata Motors share)
• Listing Date for TMLCV: Expected in Q4 2025
• Tata Motors Split Date: Effective from 1 October 2025

This Tata Motors demerger news has attracted huge attention from retail and institutional investors alike.

💹 What Happened to Tata Motors Share?

Post-split, the Tata Motors share price today reflects only its PV and JLR businesses. The new TMLCV share price will represent the commercial vehicle arm once listed.

On the NSE pre-open session, the Tata Motors stock discovered its ex-CV price near ₹ 400. The TMLCV valuation will soon be known after listing. Together, the combined value of both shares should be close to the pre-demerger Tata Motors share price.

Thus, the fall in Tata Motors share price is purely a result of technical adjustment — not a sign of fundamental weakness.

🧭 Tata Motors Share Price Target After Demerger

Brokerage firms remain positive on the long-term outlook for both companies:

• Tata Motors PV & JLR (TMPV): Target ₹ 370–₹ 420 per share
• TMLCV (Commercial Vehicles): Target ₹ 320–₹ 370 per share

The combined post-demerger target for Tata Motors shares could be ₹ 700–₹ 750, depending on market conditions. Analysts believe the Tata Motors demerger will help unlock value and bring more clarity for investors.

📰 Latest Tata Motors News

Recent Tata Motors news today includes:

• Tata Motors demerger approval by NCLT in September 2025.
• TMLCV share listing expected by the end of 2025.
• JLR’s quarterly volume drop due to a cyberattack.
• Tata Motors commercial vehicles share price expected to stabilize post-listing.

Investors are advised to track updates on Tata Motors demerger ratio, TMLCV share price, and Tata Motors PV share performance in the coming weeks.

🏁 Final Takeaway

The Tata Motors demerger marks a new chapter for the auto giant. While the Tata Motors share price today looks lower due to the split, investors now hold shares in two focused businesses — Tata Motors Passenger Vehicles Limited and TMLCV.

In the short term, Tatamotors share price may remain volatile, but in the long run, analysts expect both companies to deliver growth in their respective segments.

Tata Motors shares continue to be a key part of India’s automobile sector story — and with the demerger, the company is steering towards a more transparent and value-driven futur

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