1:1 Split Soon: Tata's Auto Stock Jumps 3.4%, Crosses Rs 700 On Cars, Commercial Vehicles Price Cut; BUY TIME?

Tata Motors, the automobile giant of Tata Group, witnessed a strong buying sentiment on Monday, September 8, after the company reduced the prices of its passenger cars and commercial vehicles, to meet the latest GST rationalization benefit. On BSE, the heavyweight stock gained 3.34% and even crossed Rs 700 mark, emerging as the top gainer of Sensex and Nifty.

Tata Motors Share Price:

At the time of writing, Tata Motors stock traded at Rs 713.55 apiece, up by 3.14% on BSE, with market cap of Rs 2,62,730.28 crore. The stock was near its intraday high of Rs 715 apiece and recorded overall gains of 3.35% so far in the session.

Tata Motors Cars Price Cut:

During the weekend, Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Ltd. & Tata Passenger Electric Mobility Ltd., said, "The reduction in GST on passenger vehicles, effective 22nd September 2025, is a progressive and timely decision that will make personal mobility more accessible for millions across India. In line with the Hon'ble Prime Minister's vision, the Hon'ble Finance Minister's intent and our Customer First philosophy, Tata Motors will fully honor the intent and spirit of this reform by passing on the entire benefit of the reduction in GST to our customers. This will make our popular range of cars and SUVs even more accessible across segments, enabling first-time buyers and accelerating the shift towards new age mobility for a wider spectrum of customers."

The new potential price cut will come into effect from September 22, 2025. Here's the full list of PVs that will become cheaper ahead:

Tata Motors Commercial Vehicles Price Cut:

The auto player has also trimmed the prices of its commercial vehicles in the range of Rs 30,000 to as high as Rs 4,65,000.

Girish Wagh, Executive Director, Tata Motors, said, "The reduction in GST on commercial vehicles to 18% is a bold and timely step towards revitalizing India's transport and logistics backbone. Inspired by the Hon'ble Prime Minister's vision and the progressive reforms announced by the GST Council under the stewardship of the Hon'ble Finance Minister, Tata Motors is proud to extend the full benefit of GST reduction on all our commercial vehicles to customers across the country. With a rich legacy of trust and an expansive portfolio of future-ready vehicles and mobility solutions, we continue to be the partner of choice for those who move India forward- empowering businesses, enabling mobility, and fueling growth."

Check The Discounts:

Tata Motors Split:

In its latest filing, Tata Motors said the final hearing for the scheme of demerger has been concluded today by NCLT and the order is reserved; we aim to complete it this quarter, with 01st October being the Effective Date.

The company is going to demerge its business into two listed entities in due course. One will be focused on commercial vehicles (CV) and the other will emphasise 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.

Should You Buy Tata Motors Shares?

The consensus recommendation from 27 analysts for Tata Motors Ltd. is HOLD, as per Trendlyne data. Of the total, 7 analysts have recommended STRONG BUY, 5 have suggested BUY, and 10 analysts have recommended HOLD. The average target price is set at Rs 754.48 apiece, hinting at nearly 6% potential upside ahead.

In a latest report, analysts at Geojit said, "The company logged a muted performance owing to softer demand across certain segments and tariff headwinds, supported by selective product launches, portfolio upgrades and brand initiatives. Its strategic priorities include premiumisation, cost efficiency, supply chain resilience and customer engagement. The upcoming demerger of its CV and PV businesses is likely to unlock operational focus and longterm value, alongside benefit from the Iveco acquisition. Additionally, JLR's UK-US and EU-US trade deal lowering tariff is expected to strengthen competitiveness and market access. Therefore, we retain our HOLD rating on the stock with a revised target price of Rs. 734 based on SOTP valuation."

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.