Tata motors share price: Tata Motors’ shares rose 4 per cent to Rs 675 per share on 7 May. Today this stock is included in the top gainers of Nifty. The company has agreed to separate the commercial vehicle business. The company’s decision came after signing the Indo-UK Free Trade Agreement. Under this agreement, auto tariffs have been reduced from 100 percent to 10 percent. Tata Motors shares have fallen by about 10 per cent in 2025 so far. During this period, Tata Motors has performed a weak performance with the Nifty. During this period, the Nifty has witnessed a rise of 2 per cent. However, there are indications of recovery in the stock since last month. Last month, it saw a rise of 15 per cent.
Tata Motors has reported that its share holders have almost unanimously approved the company’s proposal to separate the company’s commercial vehicle business and create a separate listed unit. The proposal was approved by 99.99 percent of the votes. Earlier, the company had expressed the intention to separate the CV division in March 2024.
Under this Partition Scheme, all the current shareholders of Tata Motors, Tata Motors, will be entitled to a share in the newly formed commercial vehicle company, in lieu of their current one share.
In addition, the Indo-UK Free Trade Agreement signed tomorrow evening is expected to have significant impact on the automotive sector. Under the agreement, the import duty on automobiles under a particular quota will decrease from 100 per cent to 10 per cent. Although the details of this quota are not yet clear, the premium car brands are expected to benefit from this change.
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The decision may prove beneficial for Tata Motors and especially its UK subsidiary Jaguar Land Rover (JLR), as it may increase the sales of JLR in the Indian market due to reduced import costs.