Tata Motors Passenger Vehicles shares declined 1.12% to Rs 357 on the BSE today, noting a spurt in trading volumes by 2.34 times than its 2-week average trading quantity. Around 24.07 lakh shares worth 85.65 crore were traded, much above the 10.29 lakh 2-week average quantity. This fall comes despite the demerged passenger vehicle entity recorded a 25.6% rise in November on a year-on-year basis.

TMPV, as per their notification on the exchanges, recorded sales in the domestic and international market for November 2025 stood at 59,199 units, compared to 47,117 units during November 2024. Domestic sales of passenger vehicles, including EVs, stood at 57,436 units, up 22% from last year’s 47,063 units.

At the same time, over the span of a month, the stock has fallen by 14.27%. This decline comes after Tata Motors decided to demerge its passenger vehicle and commercial vehicle businesses in October, with the latter getting listed on the bourses on November 14 this year.

On the same day, TMPV announced its first Q2 results post the demerger. The company saw a decline in revenue and EBITDA on a year-on-year basis due to the cyberattack incident that occurred at Jaguar Land Rover (JLR), which caused a heavy impact on manufacturing units, leading to a shutdown. As TMPV’s nearly 80% of its consolidated revenue comes from JLR, the shutdown affected its Q2 performance. Revenue was down by 24.3% to £4.9 billion and EBIT margins were down by 1370 bps or 8.6%.

TMPV delivered revenues of ₹72300 crore, down 13.5% and EBIT of -₹4900 crore, down ₹8,800 crore. PBT (bei) for Q2 FY26 stood at -₹5,500 crore while net profit was ₹76,200 crore including a notional profit on disposal of discontinued operations of ₹82,600 crore. For H1 FY26, the business reported a PBT (bei) of -₹1,500 crore, a decline of ₹13,900 crore over the previous year. JLR: Revenue was down by 24.3% to £4.9b

In its standalone business, TMPV delivered a rise of 15.6% in terms of revenue, on backdrop of strong festive demand and GST 2.0. EBITDA margins were 5.8% (down 40 bps YoY), while EBIT margins were at 0.2% (up 10 bps YoY).

Speaking of future outlook, TMPV said that as the overall global situation remains challenging, they would focus on stabilising production and increasing resilience throughout the extended supply chain. “In parallel, we will step up our brand-led actions to drive up demand for our products and accelerate initiatives aimed at enhancing savings and cash flow. Domestic business continues to witness robust demand following the rollout of GST 2.0. and we will drive growth through new product interventions and strong marketing actions. Overall, we expect an all-round improvement in performance in H2 FY26.”

Meanwhile, apart from a disappointing Q2 result, analysts also red-flagged other industry and regulatory developments that dented TMPV’s overall performance. As per a report by Deven Choksey Research, JLR’s China market share was hit due to a new luxury tax on vehicles priced above 900,000 yuan, which structurally pressured margins for premium manufacturers, as many high-end models fall within this bracket and automakers have been forced to absorb part of the tax amid already weak demand, resulting in higher discounting and lower profitability.

 In the US, tariff rates on vehicles imported from the UK and EU, though reduced to 10–15% in Q2 from the peak 25% level earlier, remain significantly above historical norms. Compared to the original pre-tariff rate of around 2.5%, the current structure still represents a 300–500% increase, meaning JLR continues to face a materially higher cost burden despite the recent reduction.

Nexperia’s wafer shipments were disrupted due to Germany–China geopolitical friction, which may lead to chip shortages in coming months. JLR is securing alternative suppliers and strengthening its supply chain to avoid any production impact.

On the other hand, its commercial vehicle arm, Tata Motors saw seen an opposite trend—the stock has risen 12% since its listing. The company’s domestic and international sales for November 2025 stood at 35,539 units, compared to 27,636 units during November 2024, up 29% YoY.