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Tata Motors CV vs PV: Tata Motors’ long-awaited split is finally a reality. After announcing its plan in 2024, the company officially completed its demerger on October 1, creating two independent entities with two very different journeys ahead.

The commercial vehicles business, along with all related investments, now operates as one company, while the passenger vehicle side which includes the PV division, electric vehicles and Jaguar Land Rover, has been carved out into a separate arm, renamed Tata Motors Passenger Vehicles Ltd.

With both businesses now trading independently, investors are closely watching how each segment performs in the market and what the split means for their future growth.

After the demerger and separate listings, Tata Motors’ Commercial Vehicle (CV) and Passenger Vehicle (PV) businesses are showing contrasting trends in the market.

The CV stock, which listed strongly at a premium, is now trading around Rs 314, compared with its recent high of Rs 346, reflecting a decline of about 9 per cent from the listing-day peak but still up sharply from its discovered issue price, holding most of its early gains.

The Passenger Vehicle stock is trading near Rs 372, significantly lower than its 52-week high of Rs 507.97, marking a steep 27 per cent decline from the peak.

Overall, the CV business has enjoyed a far more positive market reaction post-listing.

The CV arm reported a consolidated net loss of Rs 867 crore, but this was largely due to mark-to-market losses on Tata Capital investments. Operationally, the business delivered stable growth, with revenues rising to Rs 18,585 crore and profit before tax improving to Rs 1,694 crore.

Sales volumes grew 10 per cent year-on-year in October, supported by both domestic and international demand. The PV division, however, faced a difficult quarter.

Although headline profit jumped sharply because of an exceptional notional gain, the underlying performance showed a Rs 6,368 crore loss versus a profit last year. Revenue declined 13.5 per cent year-on-year, and Jaguar Land Rover reported a £559 million quarterly loss with reduced guidance.

The comparison shows that the CV business delivered a more stable operating performance, while the PV business struggled due to JLR disruptions.

The CV division is entering a favourable cycle driven by rising demand across construction, mining, infrastructure, and festive-led recovery. Management expects a strong second half supported by GST 2.0 reforms and improved market activity.

The upcoming IVECO acquisition is also set to expand its global scale and lift revenues to $24–25 billion.

The PV business, on the other hand, faces a more uncertain outlook. JLR continues to deal with the aftermath of the cyberattack, along with challenges such as competition in China, tariff pressure and the broader EV transition.

While domestic PV operations remain stable, they are not strong enough to fully offset JLR’s weakness. These factors leave the PV business with lower visibility for near-term recovery.

After the Tata Motors demerger, investors are closely tracking which newly listed stock, Commercial Vehicles or Passenger Vehicles, offers more upside potential. Brokerage targets show a clearer tilt toward the CV business.

With the CV stock trading near Rs 322, HSBC’s target of Rs 380 indicates an 18 per cent upside, supported by stable demand, disciplined pricing and steady profitability.

The PV stock, currently trading at Rs 372, presents a more mixed picture due to JLR’s weak Q2 and ongoing cyberattack-related disruptions.

Goldman Sachs and JP Morgan both have a target of Rs 365, indicating a 2 per cent downside, while Jefferies’ target of Rs 300 implies a sharper 19 per cent downside. Only CLSA sees upside potential with a Rs 450 target, offering a 21 per cent upside.

This contrast shows that the CV stock currently carries stronger and more consistent upside potential, while the PV stock remains weighed down by uncertainty, uneven guidance and sharper downside risks.

Anubhav Maurya is a Senior Sub-Editor at Zee Business, focusing on the stock market, personal finance, corporate news, and related sectors.

He has previously worked wi