Tata motors :The automotive racetrack just got more exciting! Tata Motors Limited has officially let its Commercial Vehicle (CV) champion run free, forming a new entity, TML Commercial Vehicles Limited (TMLCV).
Investors are calling it a fresh start, much like a racehorse breaking from the gates, ready to carve its own lane in India’s auto sector.
The Great Split -Two Horses, Two Tracks
Just like a skilled jockey separating his thoroughbreds by race type, Tata Motors has separated its Commercial Vehicle (CV) and Passenger Vehicle (PV) businesses.
This demerger enables each division to focus on its own strengths – trucks, buses, and heavy vehicles under TMLCV, and EVs and passenger cars under Tata Motors (PV).
- Effective Date: October 1, 2025
- Record Date: October 14, 2025
- Share Swap Ratio: 1:1 (each Tata Motors share gets one TMLCV share)
- Expected Listing: Soon on NSE and BSE
Analysts value the new TMLCV share at around Rs 260.75, an implied price based on pre-demerger data – a strong start for this new stallion.
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The 40% “Drop” That Wasn’t a Fall
On October 14, Tata Motors’ stock seemed to “stumble” with a 40% drop from Rs 660 to Rs 399 — but that was just a saddle adjustment, not a fall.
This technical correction reflects the separation of the CV arm’s value from the parent company, not a loss in investor wealth.
Over the past week, Tata Motors also dropped 7%, as traders balanced portfolios ahead of the demerger.
Think of it as a jockey tightening reins before the final sprint.
Analysts’ View – TMLCV Built for Power and Endurance
Financial experts see TML Commercial Vehicles Ltd as a powerful workhorse in India’s industrial arena.
- Nomura values both the CV and PV arms almost equally and expects “short-term volatility but long-term value unlocking.”
- Emkay Global gives a Buy rating, seeing TMLCV as a future heavyweight in freight and logistics solutions.
- Analysts also note that Ashok Leyland, VE Commercial, and Eicher Motors will now face a stronger rival with independent operational agility.
The Road Ahead: Markets, Margins, and Momentum
The new CV arm will focus on:
- Fleet modernization (CNG, hydrogen, and EV trucks)
- Export growth in Africa and Southeast Asia
- Digital logistics through connected trucks and smart fleet management
Meanwhile, the parent Tata Motors (housing Passenger Vehicles + JLR + EVs) continues its electric sprint, aiming for leadership in India’s EV market.
For investors, this means two focused champions running parallel – one for heavy transport, the other for green mobility.
Equine Energy in the Market
Just as a racehorse needs speed, stamina, and spirit, TMLCV will need:
- Speed: Agile decision-making is now independent
- Stamina: Sustained profitability in competitive markets
- Spirit: Innovation and brand trust to outpace rivals
If these stay aligned, Tata’s new commercial arm could become the Marwari stallion of Indian manufacturing — strong, adaptable, and built for long runs.
Investor Takeaway
- TMLCV share is likely to list near the Rs 260–Rs 270 range
- Tata Motors’ PV+EV arm expected to stabilize near Rs 400–Rs 420
- Both arms retain long-term growth potential
- The demerger is expected to unlock shareholder value over the next 12–18 months
Long-term investors who believe in “Made in India” mobility may want to hold their reins steady — this race is just beginning.
FAQs – Tata Motors’ Commercial Vehicles Ltd (TMLCV)
Q1. What is TMLCV?
A: It’s Tata Motors’ demerged Commercial Vehicle business, now an independent listed company focusing on trucks, buses, and logistics solutions.
Q2. What is the TMLCV share value?
A: Analysts estimate an implied price of around Rs 260.75 per share (based on Tata Motors’ pre-split value).
Q3. Why did Tata Motors’ share price fall by 40%?
A: The fall reflects a technical price adjustment due to the demerger, not an actual loss.
Q4. When will TMLCV list on the stock exchange?
A: Soon after the demerger record date (Oct 14, 2025), once SEBI and exchange approvals are finalized.
Q5. Should investors buy or hold?
A: Most brokerages recommend a Hold-to-Buy strategy, citing strong fundamentals in India’s CV segment.
For valuation details, check the full report on The Economic Times.
For real-time Tata Motors stock updates, visit Moneycontrol.
Background on Tata’s corporate restructuring is also available at NDTV Profit.
