Mumbai, 17 October 2025 — The TML Commercial Vehicles Limited share price has come under investor focus after recent developments surrounding its parent company, Tata Motors. According to a report by CNBC-TV18, global brokerage firm Bank of America (BofA) has downgraded Tata Motors’ passenger vehicle segment, citing concerns over its Jaguar Land Rover (JLR) business and the upcoming demerger.
As Tata Motors moves forward with the separation of its commercial and passenger vehicle divisions, the market has started closely tracking TML Commercial Vehicles Limited — the new entity carved out to focus exclusively on trucks, buses, and light commercial vehicles.
TML Commercial Vehicles Limited Share Price in Focus
The TML Commercial Vehicles Limited share price showed mixed movement this week as investors evaluated the long-term impact of the restructuring. Although the demerger is expected to unlock value by allowing both divisions to operate independently, short-term uncertainty has led to moderate volatility in Tata Motors’ overall stock.
As of Friday, Tata Motors shares traded around ₹1,030 on the NSE, down about 1.2% in intraday trade. Analysts note that once the separation becomes effective, TML Commercial Vehicles Limited shares will likely attract institutional attention due to the segment’s steady revenue base and leadership position in India’s heavy vehicle market.
Analyst Concerns and Demerger Impact
In its latest report, Bank of America (BofA) downgraded Tata Motors’ passenger vehicle business to neutral from buy, citing slower growth in the JLR division and possible short-term earnings pressure post-demerger. However, the brokerage maintained a relatively stable outlook for TML Commercial Vehicles, citing consistent demand in the logistics, e-commerce, and infrastructure sectors.
“The commercial vehicle division remains a cash-generating business for Tata Motors. However, investors should be cautious of near-term valuation adjustments post-demerger,” said a BofA analyst quoted by CNBC-TV18.
The demerger process will result in two distinct listed entities:
- TML Passenger Vehicles Limited, which will include Tata Motors’ domestic passenger car, electric vehicle, and JLR operations.
- TML Commercial Vehicles Limited, which will focus on the manufacturing and sales of heavy, medium, and light commercial vehicles.
Market experts believe that this move could make each business more agile, improve capital allocation, and enhance investor transparency.
TML Commercial Vehicles’ Growth Outlook
The commercial vehicle segment has been one of Tata Motors’ strongest performers, contributing around 45% of its domestic revenue. Industry analysts expect this segment to benefit from India’s growing demand for cargo transport and infrastructure expansion under the government’s logistics modernization initiatives.
Over the last fiscal year, TML Commercial Vehicles Limited recorded a steady increase in medium and heavy commercial vehicle (MHCV) sales, supported by recovery in construction activity and demand for fleet upgrades.
In addition, the company’s focus on electric commercial vehicles (eCVs) positions it well for future growth. Tata Motors’ recent partnerships with state transport undertakings (STUs) for supplying electric buses underscore its leadership in the green mobility transition.
“The long-term outlook for TML Commercial Vehicles is robust given the rise of e-commerce logistics, rural infrastructure development, and the government’s push for electric mobility,” said Ravi Menon, an auto sector analyst at Motilal Oswal.
What Analysts Expect for TML Commercial Vehicles Limited Share Price
Analysts anticipate that the TML Commercial Vehicles Limited share price will likely trade independently in the coming quarters after the demerger’s completion in early 2026. Depending on valuation metrics, the stock could attract both institutional and retail investors looking for exposure to India’s commercial vehicle growth story.
Brokerage estimates suggest that the standalone entity could command a valuation of ₹1.5–₹1.7 lakh crore, supported by strong cash flows and a dominant 45% market share in the domestic MHCV segment.
Still, analysts warn that rising input costs, interest rates, and a slowdown in global demand could pose near-term headwinds.
Tata Motors’ Strategic Focus
The demerger aligns with Tata Motors’ broader strategy to streamline operations and improve capital efficiency. The move follows similar restructurings in global automotive firms seeking to separate electric and traditional businesses to maximize shareholder value.
Tata Motors management has reassured investors that the demerger process will be completed smoothly without affecting employees or suppliers. Both entities will continue to operate under the Tata brand umbrella, ensuring continuity in product quality and customer trust.
Investor Sentiment
While the TML Commercial Vehicles Limited share price remains stable in the near term, market watchers expect renewed buying interest once the listing date for the new entity is announced. Investors with a long-term horizon may view the demerger as an opportunity to invest in India’s growing commercial mobility sector.
Financial experts also point out that the standalone listing will provide a clearer picture of profitability, allowing the market to assign appropriate valuations based on earnings and growth potential.
“Post-demerger, investors will finally be able to assess TML Commercial Vehicles’ performance without the volatility from JLR’s luxury segment,” said Priya Nair, equity strategist at Axis Securities.
Conclusion
The TML Commercial Vehicles Limited share price is set to become a key focus area for investors as Tata Motors undergoes one of its most significant structural changes in years. With the company’s strong position in India’s commercial vehicle market and increasing emphasis on electric mobility, the segment offers promising long-term growth potential.
However, investors are advised to remain cautious in the short term amid valuation adjustments and global macroeconomic uncertainties.
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