On November 12, 2025, Tata Motors' newly formed Commercial Vehicles (CV) business, TMCVL, made a noteworthy entry into the stock market, showcasing a solid performance on its first day of trading. The share price opened at ₹335 on the National Stock Exchange (NSE), reflecting a 28 percent increase from the anticipated valuation of ₹260.75. Similarly, on the Bombay Stock Exchange (BSE), TMCVL started at ₹330.25, marking a 26 percent premium.
The demerger of Tata Motors' CV segment, announced back in March 2024, aimed to separate the commercial vehicle operations from the passenger vehicle (PV) sector, including the evolving electric vehicle (EV) market and Jaguar Land Rover (JLR). This structural change provides each segment with the independence to pursue distinct strategies and valuations, allowing for enhanced focus and efficiency in operations.
With this transition, Tata Motors CV is now recognized as India's leading commercial vehicle manufacturer, with an extensive range of offerings from small cargo trucks to medium and heavy commercial vehicles. The company anticipates increased demand for its products due to an improved economic environment, particularly in logistics, mining, and infrastructure sectors.
The integration of the Iveco Group NV into Tata Motors' CV sector is projected to strengthen its position further, with the consolidation expected to be completed by the fiscal year 2027. Investors are optimistic about the growth prospects, particularly as demand improves through economic recovery, supported by initiatives such as GST rate reductions. In FY25, Tata Motors’ CV business reported a revenue of ₹75,055 crore with an EBITDA of ₹8,856 crore, indicating a robust profit margin.
Following the demerger, market experts suggest that the streamlined structure will allow investors to better evaluate each business independently. Analysts anticipate that the split will unlock significant value, positioning both Tata Motors' Passenger and Commercial Vehicle units for sustainable growth. Despite a slight drop in share price during midday trading, the overall sentiment remains positive, suggesting that long-term investors should view the demerged entity as a promising opportunity in the commercial vehicles sector.
In summary, the strategic demerger of Tata Motors' Commercial Vehicles business marks a significant milestone in the company's efforts to enhance shareholder value and operational focus. As it embarks on this new journey, industry watchers are keen to see how TMCVL capitalizes on market dynamics and its recent acquisitions to drive future growth in the commercial vehicles arena.