On October 14, 2025, Tata Motors’ share price experienced a significant decline, opening at ₹399, down approximately 40% from the previous day’s close of ₹660.90. This sharp drop has left investors concerned, but it’s essential to understand the context behind this movement.
Understanding the Demerger and Its Impact
The recent demerger of Tata Motors into two separate entities—one focusing on passenger vehicles and the other on commercial vehicles—has led to a reclassification of shares. As a result, the stock began trading “ex-demerger,” meaning the previous share price was adjusted to reflect the creation of two distinct companies. This structural change is a technical adjustment, not a reflection of the company’s inherent value.
Financial Performance Amidst Transition
Despite the structural changes, Tata Motors continues to perform robustly. In Q2 FY25, the company reported a total income of ₹101,450 crore, with a net profit of ₹3,343 crore. However, these figures represent a decline from the previous quarter, indicating the challenges faced during the transition period.
Leadership in Electric Vehicle Market
Tata Motors remains a dominant player in India’s electric vehicle (EV) market. In September 2025, the company sold 6,216 electric passenger vehicles, capturing a 40% market share. This performance underscores Tata Motors’ commitment to sustainable mobility and its strategic focus on EVs.
Investor Perspective: Navigating the Volatility
The initial market reaction to the demerger has been volatile. Analysts suggest that while the short-term fluctuations may cause concern, the long-term outlook remains positive. The separation allows each entity to focus on its core competencies, potentially leading to more agile operations and better market positioning.
The recent dip in Tata Motors’ share price is primarily due to the technical adjustments following the demerger. Investors should view this as a transitional phase rather than a fundamental issue with the company’s performance. With strong financials and leadership in the EV sector, Tata Motors is well-positioned for future growth.
Also read:Nawazuddin Siddiqui: From Budhana to Bombay A Journey of Persistence and Craft
Last Updated on: Tuesday, October 14, 2025 4:28 pm by Sakethyadav | Published by: Sakethyadav on Tuesday, October 14, 2025 4:28 pm | News Categories: News
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