Tata Motors' passenger vehicle (PV) segment is in the spotlight following record-breaking sales in October 2025, while the market anticipates the listing of its commercial vehicle (CV) arm later in November.

Record-Breaking October Sales

Tata Motors Passenger Vehicles Ltd. (TMPV) has announced its highest-ever monthly sales, reaching 61,295 units in October 2025. This represents a substantial 27% year-over-year (YoY) growth compared to the 48,423 units sold in October 2024. The company has achieved record-breaking monthly wholesale for the second consecutive month. The surge in sales was driven by strong festive demand and the increasing affordability of cars due to next-generation GST rate cuts.

The company's success was largely fueled by its Sports Utility Vehicles (SUVs) and Electric Vehicles (EVs). SUV sales accounted for 77% of the total monthly sales, with over 47,000 units sold. Electric vehicle (EV) sales also reached an all-time high of 9,286 units, marking a 73% YoY increase compared to the 5,355 units sold in October 2024.

According to Vahan data, Tata Motors secured the second spot in total sales in October 2025 with 74,705 units. TMPV's domestic sales surged from 41,115 deliveries in September 2025 to 74,705 in October 2025. The Tata Nexon emerged as a star performer, boosted by price reductions of ₹1.55 lakh due to the new GST rates. In the second quarter of FY26, TMPV sold 144,397 cars, a 10% YoY increase. This figure includes 24,855 EV units.

Commercial Vehicle Arm Listing

Tata Motors is in the final stages of its demerger process, with the commercial vehicle (CV) arm, formerly known as TML Commercial Vehicles Ltd, officially renamed as Tata Motors Ltd. The passenger vehicle business is now Tata Motors Passenger Vehicles Ltd (TMPV). The company formalized the name change through a fresh Certificate of Incorporation issued on October 29, 2025.

The demerger's effective date was October 1, 2025, and the record date was October 14, 2025. Shareholders registered on the record date will receive one share of Tata Motors Ltd (formerly TMLCV) for every share of Tata Motors Passenger Vehicles Ltd (TMPV). The commercial vehicle arm is expected to be listed on the NSE and BSE in November 2025.

The implied value of Tata Motors Ltd (TMLCV) is ₹260.75 per share, based on Tata Motors' pre-demerger closing price of ₹660.75 and the ₹400 opening of TMPV.

Tata Motors Ltd (TMLCV) enters this new cycle as the top commercial vehicle manufacturer in India, holding a 37.1% market share and a 12.2% EBITDA margin in Q1FY26. The company is also pursuing global opportunities, including a proposed €3.8 billion acquisition of the commercial vehicle division of Iveco Group NV. This acquisition is expected to expand its geographic footprint in Europe and Latin America.

Analysts expect near-term volatility as the market adjusts to the new structure, but remain optimistic about the long-term prospects of both entities. The demerger is expected to streamline the company's business structure and enhance shareholder value through improved transparency and governance.