With Tata Motors Ltd. trading ex-demerger, the focus is now on Tata Motors CV and how it will be priced on the stock exchanges when it lists separately in a month's time.
While the Tata Motors demerger “pegged” Tata Motors CV share price at ₹260.75, Nomura Financial Advisory and Securities (India) Pvt. Ltd. has a higher target price for India's largest truckmaker.
“Post demerger, our target price is split almost evenly for the two entities — ₹365 for Tata Motors CV and ₹367/share for Tata Motors PV,” Nomura analysts Kapil Singh and Siddhartha Bera said in a 14 October note.
Tata Motors demerger
On Tuesday, Tata Motors shares started trading excluding the value of its commercial-vehicle business, in what the final step for an 18-month-long demerger process.
After an hour-long pre-market session, Tata Motors PV shares ₹400 apiece">started trading at ₹400 apiece, as against Monday's close of ₹660.75—meaning, Tata Motors CV shares were worth ₹260.75 apiece.
Now, Tata Motors Ltd. will be renamed as Tata Motors Passenger Vehicles Ltd. to house all the car-making businesses — the India portfolio, EVs and Jaguar Land Rover. The newly carved-out entity, TML Commercial Vehicles Ltd., will then be called Tata Motors Ltd. That company's listing may take as long as 60 days, according to a 9 October exchange filing.
{{/usCountry}}Now, Tata Motors Ltd. will be renamed as Tata Motors Passenger Vehicles Ltd. to house all the car-making businesses — the India portfolio, EVs and Jaguar Land Rover. The newly carved-out entity, TML Commercial Vehicles Ltd., will then be called Tata Motors Ltd. That company's listing may take as long as 60 days, according to a 9 October exchange filing.
{{/usCountry}}Tata Motors shareholders will get one share in Tata Motors CV for each held before the demerger, implying that Tata Motors PV and Tata Motors CV will have identical shareholding to begin with.
But not exactly the same share price.
Tata Motors CV share price
According to Ambit Institutional Equities, Tata Motors CV is positioned better than Tata Motors PV to capitalise on the demerger, as it is India's largest truckmaker with industry-matching margins and healthy cash flows.
“We expect immediate value-unlocking for CV, with residual listed entity price settling at ₹380/share,” the Mumbai-based brokerage said in a note. "The global reach and synergies from the Iveco acquisition would provide a re-rating upside. We remain buyers.
SBI Securities expects Tata Motors CV to trade at ₹320-470 apiece, as against an implied ₹260.75, once it lists on the bourses.
CV sales in India are likely to show recovery in the second fiscal of Fiscal 2026, on the back of lower GST rate on trucks and buses — from 28% to 18% — as well as replacement demand from infrastructure to construction and logistics sectors. The Iveco acquisition is yet another tailwind.
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Tata Motors PV share price
To be sure, the Tata Motors demerger — first announced in March 2024 — was aimed at unlocking value of its EV as well as JLR businesses while retaining the heft of India's largest truckmaker.
But the road ahead for the Nexon maker is bumpy at best.
While the GST rate cut on small cars is a significant tailwind—Tata Motors was India's No.2 carmaker in September 2025—JLR is facing one headwind after the other. First, US tariffs on cars evaporated JLR sales in its biggest market. And before sales could normalise in the aftermath of a US-UK trade deal, a cyberattack stalled manufacturing altogether.
An Intense EV rivalry in India (Mahindra, MG Motor, etc.) and Jaguar's transition to an EV-only future are yet more overhangs for the stock.
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On Wednesday, Tata Motors PV shares were trading at ₹389-390 apiece as against the ex-demerger price of ₹400. The benchmark Sensex was nearly a percent up.