Tata Motors Splits into Passenger and Commercial Vehicles, Shares Soar

On October 1, 2025, Tata Motors completed the long-anticipated demerger of its commercial vehicle business, creating two independent entities - Tata Motors Passenger Vehicles (TMPV) and Tata Motors Commercial Vehicles (TMLCV).

As part of the restructuring, Tata Motors has officially been renamed TMPV, with its new scrip ID 'TMPV' now reflecting on stock exchanges. The adjustment of Tata Motors shares post-demerger took place on October 14, marking a crucial step for investors.

TMPV shares were trading at Rs 406.25 on the first day post-renaming, showing marginal losses but maintaining an upward trend since opening at Rs 400 during the special price-discovery session on October 14. The TMPV stock has risen nearly 2% since the session, reflecting positive market sentiment.

Meanwhile, TMLCV shares have been allotted to shareholders' demat accounts, but remain frozen until the commercial vehicle entity obtains listing approvals, expected by late November. Analysts project a trading range of Rs 320-470 for TMLCV post-listing, anticipating a revival in the domestic commercial vehicle sector in the second half of FY26.

The demerger represents a strategic move by Tata Motors to create two focused entities with greater operational clarity and growth potential, offering shareholders exposure to both passenger and commercial vehicle segments independently.