Tata Motors, a leading Indian automotive manufacturer based in Maharashtra, witnessed a surge of over 4% in its share price on May 7, 2025. This rise follows two major developments—progress in the demerger of its Commercial Vehicles (CV) business and the finalization of the India-UK Free Trade Agreement, which is expected to benefit Tata-owned Jaguar Land Rover.
Tata Motors, a major automotive company headquartered in Mumbai, Maharashtra, and part of the Tata Group, saw its stock surge over 4% in early morning trades on May 7, 2025. The rise was driven by investor optimism around two major developments—the advancement of the demerger of its Commercial Vehicles (CV) division and the finalization of the India-UK Free Trade Agreement.
On the Bombay Stock Exchange (BSE), Tata Motors’ share price opened at ₹640, slightly below the previous day’s close of ₹647.80. However, the stock quickly gained momentum, reaching an intraday high of ₹675.45, reflecting a gain of over 4%. On the National Stock Exchange (NSE), shares climbed to ₹675.65, making it one of the top-performing stocks in the Nifty 50 index.
The company had previously informed stock exchanges on May 6, 2025, that shareholders had voted on a Special Resolution regarding the Composite Scheme of Arrangement. This involves the demerger of Tata Motors’ CV business into a separate entity—TML Commercial Vehicles Limited—while also involving Tata Motors Passenger Vehicles Limited and relevant stakeholders.
Although official voting results were yet to be released as of May 7, reports suggest shareholders have approved the proposal. The final disclosure is expected to be published on the company’s official website and stock exchanges within two working days.
Additionally, Tata Motors stands to benefit from the India-UK Free Trade Agreement signed on May 6, 2025. The deal is set to make 99% of Indian exports to the UK duty-free and reduce import tariffs. This development is likely to support Tata’s premium vehicle business, particularly Jaguar Land Rover, which operates in the UK and contributes significantly to Tata Motors’ revenues.
These dual developments have instilled confidence among investors, positioning Tata Motors for potential growth in both domestic and international markets.
