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Tata Motors shares in focus after shareholders approve plan to split into two listed companies - The Economic Times

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Tata Motors Demerger Approved

Tata Motors shareholders overwhelmingly approved a plan to split the company into two separate, publicly listed entities: one for passenger vehicles (including Jaguar Land Rover) and another for commercial vehicles. This restructuring, first announced in March 2024, aims to unlock greater value for each business by allowing them to pursue independent growth strategies.

Financial Performance and Stock Price

In April 2025, Tata Motors reported a 6.1% year-on-year decline in total vehicle sales. Passenger vehicle sales fell 5%, and commercial vehicle sales dropped 8%. Despite this, analysts maintain a positive outlook, with an average target price of Rs 812, representing a potential 25% upside from the current market price. The consensus recommendation from 30 analysts is 'Buy'.

On Tuesday, Tata Motors shares closed at Rs 647.8 on the BSE, down 2.1%. While the stock has decreased by 36% over the past year, it has gained 35% over the past two years. The company's market capitalization is Rs 2,38,477 crore.

Shares of Tata Motors are likely to be in focus on Wednesday after the company announced that shareholders have approved its plan to split into two listed entities, separating its passenger vehicle (PV) and commercial vehicle (CV) businesses.

The restructuring move, first announced in March 2024, aims to unlock value by allowing each business to pursue independent growth strategies. The PV unit includes the luxury Jaguar Land Rover (JLR) brand, while the CV arm focuses on trucks, buses, and other commercial offerings.

According to an exchange filing on Tuesday, the demerger plan was approved by 99.9995% of shareholders, with each receiving equal stakes in the two new listed companies.

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Earlier last week, Tata Motors reported a 6.1% year-on-year decline in total vehicle sales to 72,753 units in April 2025, down from 77,521 units in the same month last year. Domestic sales dropped 7% to 70,963 units, compared to 76,399 units in April 2024.

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Passenger vehicle (PV) sales, including electric vehicles (EVs), fell 5% to 45,532 units from 47,983 units in April 2024. Domestic PV sales were also down by 6%, reaching 45,199 units compared to 47,883 units in the same month last year.

Commercial vehicle (CV) sales saw a decline of 8%, with 27,221 units sold compared to 29,538 units in April 2024. Domestic CV sales fell 10% to 25,764 units, partly due to a 23% drop in the Small Commercial Vehicle (SCV) and pickup segment.

Also Read: GIFT Nifty signals weak start after India strikes terror camps in Pakistan, PoK Tata Motors shares price target As per Trendlyne data, the average target price of the stock is Rs 812, which shows an upside of 25% from the current market prices. The consensus recommendation from 30 analysts for the stock is a 'Buy'.

Tata Motors shares price performance On Tuesday, Tata Motors shares closed at Rs 647.8 on the BSE, down 2.1%, while the benchmark Sensex fell 0.19%. The stock has decreased by 36% over the past year but has gained 35% over the past two years. The company’s market capitalization stands at Rs 2,38,477 crore.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)