Tata Motors demerger: Shares dip for fourth day in a row ahead of record date. Buy or sell?

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Tata Motors share price traded lower on Wednesday, extending its losses for the fourth consecutive session, ahead of the company’s demerger record date next week. Tata Motors shares fell as much as 1.38% to 688.50 apiece on the BSE.

In the past four sessions, Tata Motors share price has dropped over 4%.

Tata Motors demerger has been effective since October 1, 2025. Under the approved scheme of arrangement, the company’s Commercial Vehicles (CV) business has been demerged into a newly formed entity, TML Commercial Vehicles Limited (TMLCV), while the Passenger Vehicles (PV) business will continue under the existing company, which will be renamed Tata Motors Passenger Vehicles Limited.

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Tata Motors demerger record date has been fixed October 14, 2025, Tuesday, for the purpose of ascertaining the eligibility of shareholders for the corporate action.

Tata Motors demerger share entitlement ratio at 1:1, which means shareholders will get one fully paid-up share of 2 in Tata Motors Commercial Vehicles Limited (TMLCV) for every share held in Tata Motors.

JLR Sales

Tata Motors on Tuesday reported a sharp decline in second-quarter sales for its UK-based subsidiary Jaguar Land Rover (JLR). JLR volumes during the three months ended 30 September 2025 were hit by a cyber incident, the planned wind down of legacy Jaguar models ahead of the launch of new Jaguar and incremental US tariffs impacting JLR’s US exports.

JLR wholesales declined 24.2% year-on-year (YoY) to 66,165 units, while retail sales declined 17.1% YoY to 85,495 units in Q2FY26.

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The overall mix of Range Rover, Range Rover Sport and Defender models was 76.7% of total wholesale volumes in Q2 FY26, down from 77.2% in the prior quarter and up from 67.0% year-on-year, reflecting the prioritisation of JLR’s most profitable models, Tata Motors said in a regulatory filing on October 7.

Tata Motors Share Price Outlook

Tata Motors share price faced rejection near the key resistance zone of 735, forming a shooting star candle on the daily chart — a sign of potential reversal, noted Anshul Jain, Head of Research at Lakshmishree Investments.

“Tata Motors stock is now trading below its 10-day and 20-day EMAs, indicating short-term weakness. A decisive close below 685 will likely accelerate the downside momentum toward the major support zone of 640 – 608. Volumes remain steady and close to the 50-day average, suggesting that bearish sentiment is gradually strengthening and further selling pressure may emerge if support levels are breached,” said Jain.

Tata Motors Share Price Performance

Tata Motors share price has fallen 4% in one month and has rallied 17% in six months. On a year-to-date (YTD) basis, Tata Motors shares have fallen 8%, while the stock has declined 25% in one year. However, Tata Motors stock price has gained 11% in two years and has delivered multibagger returns of 390% in five years.

At 10:35 AM, Tata Motors share price was trading 1.02% lower at 691.05 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.



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