Tata Motors Gains On Demerger Boost, Strong Sales: SEBI Analyst Eyes Breakout Near ₹754

Shares of Tata Motors rose around 1% on Friday after the company’s demerger became effective on October 1. The automobile major has separated its commercial vehicle (CV) and passenger vehicle (PV) divisions into two independent entities.

One company will now manage the PV business, covering cars, SUVs, electric vehicles and Jaguar Land Rover, while the other will handle CVs such as trucks, buses and heavy machines.

Investors holding Tata Motors shares on October 14, the record date, will receive one equity share of the new commercial vehicle company for every Tata Motors share held. The new entity, TML Commercial Vehicles Ltd, is expected to list by early November.

September Sales Performance

The company's September sales reached a record 60,907 units, a 47% year-on-year increase, while electric vehicle sales nearly doubled to 9,191 units. Overall sales for July–September stood at 94,681 units, up 12% from the previous year, driven by strong demand, particularly in the EV segment.

Tata Motors: Technical View

According to SEBI-registered analyst Mayank Singh Chandel, Tata Motors’ stock had been in a downtrend since August 2024, but since April 2025, buyers have stepped in, forming higher lows and showing renewed strength. The stock rose 5.61% on Wednesday, indicating fresh momentum.

He added that the key resistance zone lies between ₹730 and ₹754, which has been difficult to cross in the past. A decisive breakout above ₹754 could open the way for a stronger rally and fresh buying opportunities, he said.

JLR Cyber-Attack Concerns 

Meanwhile, Jaguar Land Rover halted production at its three UK plants from August 31 after a cyber-attack disrupted internal systems, keeping operations down for most of September. The Tata Motors subsidiary announced a phased restart on Sept. 29, with full recovery expected to take several weeks.

Despite the disruption, September retail sales remained unaffected, with some wholesale deliveries managed at a lower rate. 

The company said it expects a temporary liquidity impact from the production halt but added that the US market remains resilient, China is holding steady, and the EU/UK markets are stable.

What Is The Retail Mood?

On Stocktwits, retail sentiment was ‘neutral’ amid ‘high’ message volume.

Tata Motors’ stock has declined 3.8% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on