Tata Motors’ shares are likely to attract attention following the approval of its plan to split into two listed entities, separating its passenger vehicle (PV) and commercial vehicle (CV) businesses. This restructuring, announced in March 2024, aims to unlock value by allowing each unit to pursue independent growth strategies.
Tata Motors Shareholders Approve Demerger Amid Sales Decline in April 2025
The PV unit will include the luxury Jaguar Land Rover (JLR) brand, while the CV arm will focus on trucks, buses, and other commercial offerings. The demerger plan was overwhelmingly approved by shareholders, with 99.9995% voting in favour. Each shareholder will receive equal stakes in the two new entities.
In its latest update, Tata Motors reported a 6.1% year-on-year decline in total vehicle sales, with 72,753 units sold in April 2025, down from 77,521 units in the same month last year. Domestic sales fell by 7%, with PV sales dropping 5%, including a 6% fall in domestic PV sales. CV sales also declined by 8%, largely due to a 23% drop in the Small Commercial Vehicle (SCV) and pickup segment.
Analysts Bullish on Tata Motors Despite Recent Stock Dip and Sales Slump
Despite this, analysts remain optimistic about Tata Motors’ prospects. The stock’s average target price, as per Trendlyne data, is Rs 812, reflecting a 25% upside from current market prices. The consensus recommendation from 30 analysts is a ‘Buy’ rating. On Tuesday, Tata Motors shares closed at Rs 647.8, down 2.1%, while the benchmark Sensex fell by 0.19%. The stock has decreased by 36% over the past year but has gained 35% over the past two years, with a market capitalization of Rs 2,38,477 crore.
Summary:
Tata Motors’ shareholders approved a demerger to split its PV and CV businesses, aiming for focused growth. Despite a 6.1% sales drop in April 2025, analysts remain optimistic. With a 25% upside potential and strong long-term performance, the stock continues to attract ‘Buy’ recommendations from market experts.
