Shares of Tata Motors fell by over 40 per cent on Tuesday, October 14, 2025. The stock opened at Rs 399 on the BSE, sharply lower than Monday’s closing price of Rs 660.90. The major fall in the share price of Tata Motors came after the company officially completed its demerger into two separate entities — Tata Motors Passenger Vehicles Limited and TML Commercial Vehicles Limited.
Tata Motors share price demerger
The company has officially split its commercial vehicle and passenger vehicle businesses. The PV unit will be named Tata Motors Passenger Vehicles Ltd (TMPVL). It will consist of the domestic PV business, Jaguar Land Rover, stake in Tata Sons, Tata Steel and Tata Technologies, along with other investments. The demerged Commercial Vehicles unit will consist of the domestic CV business, Iveco business, whose contribution is not accounted for in the price target, and the stake that it owns in Tata Capital.
Why did Tata Motors’ shares drop on October 14?
The steep fall in Tata Motors’ shares is purely technical and not a cause for concern, said market experts. It reflects the adjustment in the stock’s value after the demerger and does not impact investors’ total holdings. Tata Motors has now divided its commercial vehicle arm into a new company. Hence, the original Tata Motors stock now represents only the passenger vehicle business. The price drop shows that the commercial vehicle division has been separated, not that the company has lost value overall.
Tata Motors shares
The share of Tata Motors closed at Rs 395 on NSE on Tuesday. Its market cap currently stands at Rs 1.46 lakh crore, as of October 14.