Tata Motors shares continued their downward trend for the fourth consecutive session on Wednesday, sliding ahead of the company much-awaited demerger record date next week. The stock fell as much as 1.38% to ₹688.50 on the BSE, extending its four-day loss to over 4%.
The decline comes even as the company long-planned demerger officially took effect on October 1, 2025, marking a major restructuring move for the auto giant. Investors, however, appear cautious ahead of the record date, which determines eligibility for share allocation under the demerger scheme.
Tata Motors Demerger: What’s Changing?
Under the approved scheme of arrangement, Tata Motors has split its business into two independent entities:
- TML Commercial Vehicles Limited (TMLCV): Will handle the commercial vehicle business.
- Tata Motors Passenger Vehicles Limited (TMPV): The existing company, which will continue with the passenger vehicle and electric vehicle segments.
The record date for the demerger has been fixed as October 14, 2025 (Tuesday). Shareholders holding Tata Motors stock as of that date will be entitled to one fully paid-up share of ₹2 in TMLCV for every Tata Motors share held (1:1 ratio).
This separation aims to provide sharper business focus, better capital allocation, and flexibility in pursuing independent growth strategies for both divisions — particularly as the company bets big on EVs and global expansion.
JLR Sales Hit by Cyberattack and US Tariffs
Adding pressure to the stock, Tata Motors on Tuesday reported a sharp decline in Q2FY26 sales for its UK-based subsidiary Jaguar Land Rover (JLR). The luxury carmaker global performance was impacted by a cybersecurity incident, the planned wind-down of older Jaguar models, and higher US tariffs on UK exports.
- JLR wholesales: Down 24.2% YoY to 66,165 units
- Retail sales: Down 17.1% YoY to 85,495 units
The slump in JLR volumes has dampened investor sentiment, especially since the brand remains a key contributor to Tata Motors’ consolidated revenues.
Technical Outlook: Weakness Ahead
From a technical perspective, analysts remain cautious on Tata Motors in the short term. According to Anshul Jain, Head of Research at Lakshmishree Investments, the stock recently faced resistance near ₹735, forming a shooting star pattern on the daily chart — often a signal of potential reversal.
“Tata Motors stock is now trading below its 10-day and 20-day EMAs, indicating short-term weakness,” Jain said. “A decisive close below ₹685 could accelerate the downside toward the major support zone of ₹640–₹608.”
Volumes, he added, have stayed close to their 50-day average, showing gradually strengthening bearish sentiment.
Tata Motors Stock Performance Snapshot
| Period | Performance |
|---|---|
| 1 Month | -4% |
| 6 Months | +17% |
| Year-to-Date (YTD) | -8% |
| 1 Year | -25% |
| 2 Years | +11% |
| 5 Years | +390% (multibagger returns) |
Despite short-term volatility, Tata Motors remains one of the top-performing auto stocks of the past five years, thanks to its aggressive EV plans, JLR revival strategy, and improved domestic market share.
Should You Buy or Sell Tata Motors Now?
Analysts suggest investors adopt a cautious stance in the short term as the stock adjusts to post-demerger volatility and weaker global cues. Long-term investors, however, may consider accumulating on dips, given Tata Motors’ strong fundamentals, rising EV focus, and clear corporate restructuring.
With the record date approaching and JLR sales under temporary pressure, volatility is likely to persist in the near term. Traders are advised to watch key support levels around ₹685–₹640 before taking fresh positions.
