Tata Motors stock crashes 40% in a day; Jaguar owners stunned

Shares of Tata Motors (NSE: TATAMOTORS), one of India’s leading automakers and the owner of Jaguar, tumbled over 40% in early trading on Tuesday, October 14, following the company’s demerger of its commercial vehicle (CV) division.

The sharp decline also drove investor interest in searches for the Jaguar stock price, even though Jaguar itself is not separately listed.

As part of the separation, the market value of the business arm has been deducted from the parent company, resulting in today’s price drop.

At the time of writing, Tata Motors stock is trading at ₹395, approximately $4.45, down 47% year-to-date (YTD).

Following the demerger, the automotive giant is split into two entities: Tata Motors Passenger Vehicles Limited (TMPV) and Tata Motors Commercial Vehicles Limited (TMLCV). 

Under the new structure, TMPV will encompass passenger vehicles, electric vehicles (EV), and the Jaguar Land Rover (JLR) business, meaning anyone looking for the Jaguar stock price is effectively tracking Tata Motors shares. 

Shareholders holding TATAMOTORS stock on or before October 13 are entitled to receive one TMLCV share for every share that they own.

History repeats itself?

The demerger was first approved by the board in August 2024, followed by a shareholder vote ordered by the National Company Law Tribunal (NCLT) in March 2025, which concluded on March 28.

In the months following the approval, however, the stock fell over 30% amid weakening sales, culminating in the November controversy caused by Jaguar’s “woke” ad campaign.

Other subsidiaries also contributed to the downtrend, as the Indian stock market started to decline in September due to growing fears of an economic slowdown and a series of analyst downgrades.

Still, shareholders approved the split on May 6 this year, and the CV business was officially spun off on October 1. 

The record date for TMLCV share entitlement was October 14, with the new commercial vehicle company expected to list on the BSE and NSE by early November.

Featured image via Shutterstock