By Jason Chau


Tata Motors, the owner of Jaguar Land Rover, has started its first day of trading after a demerger, marking a milestone in the carmaker's reorganization.

The automotive company, part of Indian conglomerate Tata Group, announced in March last year that it would its businesses into two listed entities: one for commercial vehicles and another focused on passenger vehicles, including JLR.

It said the decision was a "logical progression" of the division of the passenger and electric-vehicle businesses done in 2022 that would help the auto units capitalize on market opportunities.

The company set Oct. 14 as the record date for identifying shareholders eligible to receive shares in the spun-off entity.

Under the split, which took effect Oct. 1, the passenger-vehicle side will trade as Tata Motors Passenger Vehicles. The commercial business will go by Tata Motors Ltd. and begin trading in 45 to 60 days after the record date, exchange filings showed.

The move comes as the Mumbai-based company grapples with the fallout from a cyberattack that shut down JLR's manufacturing operations. Uncertainty around U.S. tariffs on vehicles has been an added strain.

Post-demerger, Nomura analysts split their target price almost evenly between the two entities. They set a INR365.00 target for the CV business, and one of INR367.00 per share for the PV arm.

In a report, Nomura noted some tailwinds for the PV unit, with India's tax cuts boosting momentum as festive and pent-up demand kick in. The recent launch of the Harrier EV has also been met with an encouraging response, with bookings beating early expectations, they said.

The analysts don't expect the cyberattack on JLR to have a significant impact on demand, with production likely to pick up in the coming weeks.

The passenger-vehicles business was last trading at INR401.75. Shares were readjusted from Monday's closing price of INR660.90 to INR399.00 at Tuesday's opening to reflect the demerger.


Write to Jason Chau at jason.chau@wsj.com


(END) Dow Jones Newswires

10-14-25 0514ET