Tata Motors demerger: What lies ahead for PV and CV businesses post split

Tata Motors Commercial Vehicles will list on November 12, 2025, on stock exchanges under the 'T' Group, with a face value of ₹2 each

As Tata Motors’ newly demerged commercial vehicle arm prepares to list on the stock exchanges, analysts are upbeat about its growth outlook but remain cautious on the passenger vehicle business (TMPV).

 

Tata Motors Commercial Vehicles (TMCV) listing will take place on Wednesday, November 12, 2025.  Tata Motors CV shares – to be traded as Tata Motors Ltd – will be listed under the 'T' Group category, with each share carrying a face value of ₹2 per share. 

 

The Tata Motors demerger took effect on October 1, 2025, resulting in two independent listed entities: Tata Motors PV, comprising the EV and Jaguar Land Rover (JLR) businesses, and Tata Motors CV, the group’s commercial vehicle division. Market experts believe that the Tata Motors demerger will unlock significant shareholder value for both the verticals.   CATCH TATA MOTORS CV SHARES LISTING UPDATES LIVE

The road ahead for PV arm

JLR contributes about 90 per cent of the TMPV's profit as of FY25, while the domestic business revenue share is at only 10 per cent, analysts noted, giving a cautious view on the stock. 

 

JLR is currently facing its own set of challenges on multiple fronts, from the production disruption due to the cyberattack to the intense competitive intensity in China to the overall consumer slowdown across North America and Europe, SBI Securities said in an earlier note. 

 

According to JP Morgan, the cautious outlook on JLR stems from uncertainty over the potential impact of US tariffs and China’s luxury tax in FY27, as well as the launch timeline and competitive positioning of models beyond the top three (Range Rover, Range Rover Sport, and Defender).   ALSO READ | Tata Motors demerger: How the split will unlock value for investors & Tatas 

However, the India PV business, contributing less than 10 per cent of profit after tax, is expected to benefit from improved market growth and new model launches, though margin improvement remains critical for a re-rating, JP Morgan said. 

 

JP Morgan said it is raising estimates for the TMPV business but cutting them for JLR. On a consolidated basis, FY27-FY28 Ebitda and earnings per share are lowered by around 30 per cent, though this is not like-for-like due to the demerger of the India CV business. 

 

JP Morgan added that India PV volume recovery should drive margin expansion, projecting 11 per cent compound annual growth in volumes during FY26-FY28, led by market recovery and new launches. The segment is already net cash positive and is expected to generate modest free cash flow over FY26-FY28.

TMCV outlook

According to SBI Securities, TMCV is India’s largest commercial vehicle manufacturer with a presence across segments from small cargo vehicles to medium and heavy commercial vehicles. 

 

The brokerage expects the domestic commercial vehicle industry to begin recovering in the second half of FY26, supported by factors such as the Goods and Services Tax (GST) rate reduction on commercial vehicles from 28 per cent to 18 per cent, replacement demand, and increased activity in the infrastructure, construction, and logistics sectors. The anticipated integration of Iveco Group NV in FY27 is expected to further expose the company to the global commercial vehicle cycle, it said.