Shares of Tata Motors rise gradually on good overseas news, optimism in investors, and record high volumes of trades in Indian bourses.
In a stunning reversal, Tata Motors stocks have appreciated by 9% in two consecutive trading days, hitting ₹704 on the Bombay Stock Exchange (BSE) on Thursday. The trend indicates fresh investor confidence, supported by strong global developments, phenomenal Q4 performance by Jaguar Land Rover (JLR), and a strategic company demerger announcement.
Strong Market Rally After a Month-Long Dip
Tata Motors share has recovered 30% from its April low, indicating improved investor sentiment.
Its share has moved sharply higher since touching an intra-month low of ₹542.55 on April 7, 2025, recovering almost 30% in under four weeks. Till 09:57 AM on Thursday, shares had appreciated to ₹698.80 — up 3% — while the broader BSE Sensex marked a marginal decrease of 0.08%.
Large sizes supported the march, with more than 10.46 million shares exchanging hands on the NSE and BSE in the first 42 minutes of trading, showing high buying demand and institutional flows.
India-UK Free Trade Deal Soothes Optimism
The new India-UK Free Trade Agreement (FTA) will directly benefit Tata Motors’ UK operations.
Finalization of the much-hoped-for FTA between the UK and India will go on to further cement economic and strategic partnership, specially benefitting Indian car titans having UK affiliates — chiefly Tata Motors and its high-end car unit, Jaguar Land Rover.
The principal feature of the agreement is lowering car import taxes from 100% to 10% through a quota that reduces the prices of luxury vehicles in India. According to analysts, this slash in tariffs is particularly significant for JLR and its top models, making them competitive in price-sensitive but aspirational Indian markets.
Jaguar Land Rover Posts Strong Q4FY25 Results
JLR’s steady performance supports Tata Motors’ worldwide growth expectation.
Jaguar Land Rover achieved an excellent performance in Q4 FY25, especially in North America, as wholesale volumes rose by 14.4% year-on-year. Overall volumes were 111,413 units, up by 6.7% from the last quarter.
Whereas the UK market was stagnant and China fell 29.4%, the expansion of 10.9% in North America and Europe reflects excellent global demand for the brand. More importantly, JLR attained a net cash-positive position, consistent with its long-term “Reimagine” strategy for sustainable growth.
Potential UK-US Trade Deal May Bring Additional Gains
Trump’s enigmatic disclosure implies further trade prospects featuring the UK, indirectly favoring Tata Motors.
Adding extra excitement to the pot, ex-US President Donald Trump hinted at a “big trade deal” that will be announced at a press conference on Thursday night (IST). No nation was mentioned, but The New York Times suggests the UK is involved.
If ratified, such a transaction would improve transatlantic trade relations, with beneficial spillovers for UK-based companies like Jaguar Land Rover — thereby indirectly bolstering Tata Motors’ international positioning.
Tata Motors Declares Strategic Demerger
The envisaged demerger between Commercial and Passenger Vehicles may unlock new growth avenues.
In a historic corporate action, Tata Motors has declared its decision to demerge into two standalone listed companies: one dealing with Commercial Vehicles (CVs) and the other covering Passenger Vehicles (PV), Electric Vehicles (EV), and JLR.
The demerger seeks to simplify the operations and liberate value for shareholders, dividing them equally into both entities. The CV division will concentrate on developing a world-class commercial vehicle platform, and the PV/EV/JLR entity will gain synergies through electric mobility, autonomous driving, and sophisticated software integration.
Based on Tata Motors’ FY24 annual report, this organizational reform is intended to increase agility, improve business focus, and augment long-term shareholder value.
Investor Sentiment at All-Time High
Several global and strategic victories fuel investor optimism and trading volumes.
The synergy of a strong stock rally, encouraging trade agreements, strong JLR performance, and a revolutionary corporate restructuring has prompted fresh enthusiasm among investors and analysts alike.
Tata Motors is now regarded as well-placed for short-term gains and long-term strategic victory, especially in the changing electric vehicle and luxury auto space.
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