Amid the fast-approaching Tata Motors share demerger record date, Tata Motors’ share price remained under pressure from sell-offs on all sessions last week. Extending the losing streak for the sixth straight session on Friday, Tata Motors shares ended marginally lower at ₹679.15 apiece on the NSE. After reaching ₹679.15 per share on Friday, the Tata Motors share price declined by around 5.50% to slip from ₹718.35 to ₹679.15 per share during this period.

As the Tata Motors demerger record date falls on October 14, 2025, investors will have the opportunity to buy Tata Motors shares on Monday to become eligible for the entitlement to Tata Motors Commercial Vehicles shares.

Tata Motors demerger

Speaking on the composite scheme of Tata Motors, Khushi Mistry, Research Analyst at Bonanza, said, “The 1:1 demerger will create two focused entities, Tata Motors Commercial Vehicles (TMLCV) and Tata Motors Passenger Vehicles (TMPV). TMLCV will enter the market as India’s largest commercial vehicle (CV) manufacturer with a 37.1% market share. In Q1FY26, the CV segment sustained a healthy double-digit EBITDA margin of 12.2%, even as revenue declined, supported by continued operational efficiencies. It will also benefit from the €3.8 billion Iveco acquisition, making it the world’s fourth-largest truck manufacturer (with a payload above 6 tonnes). The domestic CV industry is expected to grow 3% to 5% in FY26, supported by infrastructure and e-commerce demand.”

Mistry said that the TMPV segment will incorporate passenger vehicle (PV) business, electric vehicles (EV), and Jaguar Land Rover operations. The domestic PV segment is expected to grow 8–10% in H2 FY26, driven by new launches, strong SUV positioning, and rising demand for EVs and CNG, which collectively account for 45% of its PV segment revenue.

Tata Motors share price outlook

Speaking on the outlook of Tata Motors shares, Drumil Vithlani, Technical Analyst at Bonanza, said, “Tata Motors shares have seen a sharp correction last week, indicating selling pressure ahead of the event. It is trading below the 20-week EMA ( ₹688.46), which is now acting as a resistance level. Momentum indicators suggest consolidation or slight weakness, but not a full reversal yet. Given the upcoming demerger event, volatility is expected, so it’s prudent to hold if already invested and avoid fresh entry until clarity post-event.”

The technical expert said, “If the stock holds above key support (~ ₹669), and manages a close above the EMA at ₹688–690, we may see a short-term recovery towards the target 1: ₹720m and then for the target 2: ₹736–740 (strong resistance zone).”

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