Tata Motors shares extend gain, surge 9% on heavy volumes; here's why

Share price of Tata Motors today: Shares of Tata Motors continued their upward movement for the second straight day, gaining 3.5 per cent to ₹704 on the BSE in Thursday’s intra-day trade amid heavy volumes. 

 

In the past two days, the stock price of Tata Group's automobiles company has rallied 9 per cent. With the past two days' rally, Tata Motors has bounced back 30 per cent from its previous month low of ₹542.55 touched on April 7, 2025. It had hit a 52-week high of ₹1,179.05 on July 30, 2024.

 

At 09:57 am, Tata Motors was quoting 3 per cent higher at ₹698.80 as compared to 0.08 per cent decline in the BSE Sensex. A combined 10.46 million equity shares have changed hands on the NSE and BSE in the first 42 minutes of trading.  Read Stock Market LIVE Updates Today Here

 

 

India-UK free trade deal

 

India and the United Kingdom (UK) announced a successful conclusion to the historic Free Trade Agreement (FTA). The said agreement is expected to boost strategic and economic ties between the two nations.

 

According to reports, the deal is expected to benefit Indian automobile companies with their arms in the UK — like Tata Motors. The FTA is likely to have significant implications for Jaguar Land Rover (JLR), the British luxury car manufacturer owned by Tata Motors. The FTA aims to reduce tariffs on various goods, including JLR vehicles, thereby potentially making them more affordable, and in turn boosting volumes.

 

For UK car manufacturers, the reduction in car import duties from 100 per cent to 10 per cent (under a specified quota) might aid, especially in the luxury segment. A duty reduction will make some of the luxury cars cheaper, but the prices will remain above ₹80-90 lakh, according to analysts at Elara Capital.  ALSO READ | Sonata Software climbs 5% on posting healthy Q4 results; Check details here

 

UK-US deal

 

US President Donald Trump said that he plans to hold a news conference on Thursday (IST) to announce a ''major trade deal''.

 

The news conference, according to Indian time, will take place at 7:30 pm today. Even though he did not specify the country to which he was referring to, a report from The New York Times suggests that the United Kingdom could be the nation Trump was referring to. CLICK HERE FOR FULL REPORT

 

JLR delivers strong Q4, FY25 sales

 

In the January to March 2025 quarter (Q4FY25), JLR experienced significant sales growth in North America, with wholesale volumes rising by 14.4 per cent compared to the previous year. JLR said the strong sales reflected consistent, sustained global demand, as the company achieved a net cash positive position, a key Reimagine strategy target.

 

For Q4FY25, wholesale volumes were 111,413 units (excluding the Chery-Jaguar Land Rover China JV), up 6.7 per cent vs. Q3FY25 and up 1.1 per cent year-on-year. Compared to the prior year, wholesale volumes for the fourth quarter were higher in North America (14.4 per cent), Europe (10.9 per cent), flat in the UK (0.8 per cent), lower in China (-29.4 per cent) and Overseas (-8.1 per cent).  ALSO READ | This Tata group stock rose 3% on announcing strong Q4FY25 results, dividend

 

Tata Motors Demerger

 

Tata Motors board has proposed the demerger of the company into two separate listed companies housing A) the Commercial Vehicles (CV) business and its related investments in one entity; and B) the Passenger Vehicles (PV) businesses including PV, electric vehicle (EV), JLR and its related investments in another entity. This proposal is said to give the shareholders equal stakes in both the listed entities.

 

The proposed demerger will help the company improve focus and make it more agile to capitalise on opportunities in the CV market globally. This will also help secure the considerable synergies across PV, EV and JLR particularly in the areas of EVs, autonomous vehicles, and vehicle software. 

 

The company’s focus will be to create a world-class Company operating in the CV space, providing superior experience to its customers, better growth prospects for employees, and enhanced value for shareholders, Tata Motors said in the FY24 annual report.