Tata Motors Ltd, the automobile giant of the Tata Group, is trading marginally lower on Wednesday, however, a couple of rupees away from hitting the Rs 700 mark. YTD, Tata Motors' stock price dropped by nearly 8% on BSE. The performance comes at a time when the 90-day pause of US Liberation Day tariffs ends on July 9.
Tata Motors Share Price:
At the time of writing, Tata Motors' share price traded at Rs 691.25 apiece, down 0.3% on the BSE, with a market capitalisation of Rs 2,54,462.68 crore. However, in the early trade, Tata Motors' stock touched an intraday high of Rs 693.
Taking into consideration the July 9th high, Tata Motors stock was shy of Rs 7 from reclaiming the Rs 700 mark.
The auto giant's 52-week high and low are at Rs 1,179.05 and Rs 542.55, respectively. YTD, the stock is down by 7.7%.
Tata Motors Q1 Sales:
On July 8, the Tata auto giant announced its group wholesale numbers in Q1FY26, to 2,99,664 units, lower by 9%, as compared to Q1 FY25. This includes sales of JLR as well.
According to the data, global wholesale sales of all Tata Motors' commercial vehicles and the Tata Daewoo range in Q1 FY26 were at 87,569 units, lower by 6%, over Q1 FY25. Meanwhile, Global wholesales of Tata Motors passenger vehicles* in Q1 FY26 were at 1,24,809 units, lower by 10% as compared to Q1 FY25.
Furthermore, global wholesales for Jaguar Land Rover were 87,286 vehicles, lower by 11% as compared to Q1 FY25. Jaguar wholesales for the quarter were 2,339 vehicles, while Land Rover wholesales for the quarter were 84,947 vehicles.
Tata Motors Split:
Among major developments that investors are looking forward to in Tata Motors is its demerger into two businesses. During the 80th annual general meeting (AGM) of Tata Motors, Chairman N Chandrasekaran shed light on the demerger plans. He said the company will be split into two listed entities soon. One will be focused on commercial vehicles (CV) and the other will emphasize the passenger and JLR cars segment.
As part of the demerger plan, Tata Motors shareholders will get 1 share of TMLCV with a face value of Rs 2 each for every 1 share held in the company. This makes the business split ratio 1:1.
BUY Tata Motors Stock?
According to Deven Choksey Research, Tata Motors JLR reported Q1FY26 wholesale volumes of 87,286 units, a 10.7% decrease YoY and 21.7% down from Q4FY25, reflecting the planned wind down of legacy Jaguar models and US import tariffs.
Additionally, its retail sales reached 94,420 units, down 15.1% YoY and 12.8% from the previous quarter. Regional wholesale performance showed growth in the MENA region (+20.5%), Overseas (+4.6%), and China (+1.0%), but declines in North America (-12.2%), Europe (-13.6%), and the UK (25.5%).
Also, Range Rover, Range Rover Sport, and Defender models comprised 77.2% of total wholesale volumes, up from 66.3% last quarter and 67.8% last year.
Following the above performance, the brokerage has suggested ACCUMULATE on Tata Motors stock for a target price of Rs 799.
Trump's Tariff On Automobile:
US has imposed a 25% tariff in March on imported cars. This could impact foreign automobile giants like BMW, Mercedes, and Jaguar Land Rover (JLR) which is a Tata Motors subsidiary in luxury car segment.
However, later on, Trump reduced US tariff to 10% on British-based carmakers, sharply from 27.5%, giving a huge relief to the UK-based JLR.
Currently, Trump has announced new tariff rates that will be implemented from August 1, 2025. On India, Trump has announced a reciprocal tariff of 27%.
Meanwhile, the UK is the only country to have secured this deal with the US, reducing car export tariffs from 27.5% to 10%, saving manufacturers hundreds of millions each year and protecting hundreds of thousands of jobs.
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