Tata Motors' share price rose over 7% this week, driven by strong gains. The company’s demerger plan aims to enhance focus on its Commercial and Passenger Vehicle businesses. The UK-India Free Trade Agreement could boost JLR’s sales.
The share price of Tata Motors surged over 2% on Thursday, extending yesterday's and hitting a fresh one-month high. On a weekly basis, the stock price is up over 7%. At 10:36 AM the stock was trading at ₹698 with an intraday high of ₹704.5. The stock has gained over 18% in the last month, while in the last 12 months it is down by 29%. In the longer-term period of 5 years, Tata Motors gave returns of 702%.
The surge in Tata Motors’ share price is most likely due to the shareholders’ approval for the demerger.
Tata Motors held a meeting of its equity shareholders on May 6, 2025, as directed by the National Company Law Tribunal (NCLT), Mumbai Bench, to approve the Composite Scheme of Arrangement involving a demerger of Tata Motors Limited into two listed companies: one for its Commercial Vehicles (CV) business and the other for its Passenger Vehicles (PV) business, including electric vehicles (EVs) and JLR.
Shareholders will receive equal stakes in both entities. This restructuring aims to enhance focus and agility, drive growth in the global CV market, and foster synergies in EVs, autonomous vehicles, and software, ultimately strengthening its CV operations and creating long-term value for shareholders.
Optimism is brewing as India and the United Kingdom officially conclude their landmark Free Trade Agreement (FTA), ushering in a new era for bilateral economic and strategic ties. This historic deal is set to unlock mutual trade opportunities and deepen cooperation across key sectors.
Among the early beneficiaries, Indian automobile manufacturers with operations in the UK—particularly Tata Motors—are expected to gain significant traction. The FTA’s reduction in tariffs on goods, including vehicles, could give a major boost to Jaguar Land Rover (JLR), the British luxury car brand owned by Tata. With improved price competitiveness, JLR may see a notable uptick in demand and sales.
U.S. President Donald Trump has stated that he will be holding a press briefing today at 7:30 pm IST to reveal details about a significant trade agreement. Although he did not name the country involved, there is speculation that the deal could be related to the United Kingdom.
In Q4 FY25 results, JLR reflected steady and sustained global demand, and the company achieved a net cash positive position, marking a key milestone in its Reimagine strategy.
For the fourth quarter, wholesale volumes (excluding the Chery Jaguar Land Rover China JV) stood at 111,413 units, registering a 6.7% increase over Q3 FY25 and a 1.1% rise year-on-year. Regionally, wholesale volumes saw growth in North America (14.4%) and Europe (10.9%), remained nearly flat in the UK (0.8%), and declined in China (-29.4%) and other overseas markets (-8.1%).
Retail sales for Q4, including the Chery Jaguar Land Rover China JV, totaled 108,232 units down 5.1% from Q4 FY24 but up 1.8% compared to Q3 FY25.
High-margin models Range Rover, Range Rover Sport, and Defender accounted for 66.3% of total wholesale volumes in Q4 FY25 and 67.8% for the full year.
For the full financial year ended 31 March 2025, wholesale volumes reached 400,898 units while retail sales stood at 428,854 units. Compared to the previous year, these figures were largely stable, with wholesale volumes down marginally by 0.1% and retail sales by 0.7%. The company also successfully achieved a net debt-free position during the year.
Disclaimer: The article is for informational purposes only and not investment advice.
For android only