Tata Motors demerger: Here’s how its passenger vehicles business fares against its peers

Tata Motors demerger: India’s leading automaker undertook significant corporate restructuring this month. Tata Motors demerged its businesses into two separate entities to improve efficiency, drive innovation and unlock long-term value for its shareholders.

The company’s commercial and passenger vehicle business will be divided into two different listed companies, namely Tata Motors Passenger Vehicles Ltd. (TMPV) and Tata Motors Commercial Vehicles Ltd. (TMLCV).

Tata Motors demerger key details

• Record Date: October 14, 2025
• Face value: ₹2 per share
• Demerger ratio: 1:1 (one share of commercial vehicle business for each Tata Motors share held)
• Total shares: 3,68,23,31,373 equity shares
• Tata Motors CV listing date: 45 to 60 days from the submission of the listing application

Tata Motors Passenger Vehicles (TMPV) share price started trading at ₹400 apiece, discovered via a special pre-open session held on October 14, which was the record date to determine the eligible shareholders. Meanwhile, Tata Motors Commercial Vehicles (TMLCV) is in the process of getting listed on both BSE and NSE, which typically takes 45-60 days from the submission of the listing application.

Experts believe the demerger is expected to be positive for the passenger vehicles business, which has brands like Jaguar Land Rover (JLR), Tata Nexon, Punch and others. By separating the business, Tata Motors Passenger Vehicles will get more independence to focus on its own strategy, investments, and growth opportunities.

Tata Motors Passenger Vehicles (TMPV) operates in a fast-changing market and competes with automotive giants like Maruti Suzuki, M&M and Hyundai Motor

Domestic sales comparison

*Market cap, YTD return as of 27 October closing

**JLR sales not included

During the September quarter, three out of the top four automakers saw double-digit growth in sales, largely supported by the GST rate reduction and pent-up demand during the quarter.

Compared to its peers, Tata Motors Passenger Vehicles is the fourth-largest firm in terms of sales in Q2FY26, while Maruti Suzuki continues to remain the top automaker with sales of 795,446 units. Mahindra & Mahindra (M&M) reported the highest sales growth of 14% YoY amid high demand for its SUV segment.

Tata Motors Passenger Vehicles (TMPV)

The company reported a 10% YoY jump in sales to 144,397 units in the second quarter of FY26. In September month alone, the company saw a substantial 47% YoY growth in sales to 60,907 units.

The upswing in demand comes following a reduction in GST rates to 18% from 28% for smaller cars under 4 meters, while luxury vehicles will be taxed flat at 40% removing the previous cess.

Meanwhile, Jaguar Land Rover (JLR) reported a significant decline in sales by 24.2% YoY to 66,165 units during the September quarter amid production stoppages caused by a cyber incident, significant new US trade tariffs and other operational challenges.

Tata Motors Passenger Vehicles (TMPV) is highly dependent on its subsidiary JLR for its business revenue and profitability. In the June quarter, Tata Motors' consolidated revenue stood at ₹103,546 crore, out of which JLR accounted for 75,952 crore, while the domestic passenger vehicles (PV) business reported revenue of 10,877 crore. The rest of the revenue came from the commercial vehicle segment.