Tata Motors Passenger Vehicles

S&P Global Ratings changed its outlook on Tata Motors Passenger Vehicles to negative while maintaining the 'BBB' long-term credit rating. A cyberattack at Jaguar Land Rover halted production through September and early October, prompting S&P to estimate JLR's FY26 revenue will decline 15-18% to approximately £24 billion with profit margins dropping to as low as 3%. Since Tata Motors PVs depends on JLR for over 80% of earnings following the commercial vehicle business demerger, S&P projects the parent company's debt-to-EBITDA ratio could rise to 3 times from 1 time previously. The rating agency noted that Tata's Indian passenger vehicle business provides some stability through consumer demand growth, EV leadership, and new product launches. S&P indicated the funds-from-operations-to-debt ratio could recover toward 40% by FY28 if JLR stabilizes, and the outlook could return to stable if the British subsidiary recovers faster than expected.

S&P has updated Tata Motors' passenger vehicle outlook to negative due to slow recovery at Jaguar Land Rover following a cyber attack. The rating agency predicts Tata Motors' cash flow from passenger vehicles will drop due to ongoing operational issues at JLR. S&P warns the cyber attack at JLR may last longer than expected, affecting Tata Motors' credit metrics for an extended period. Despite the negative outlook, S&P confirmed Tata Motors' 'BBB' rating and maintained JLR's 'BBB-' rating unchanged.

Tata Motors shares will trade under the new name Tata Motors Passenger Vehicles (TMPV) starting October 24, completing the renaming process as part of an ongoing demerger. The company is splitting its commercial vehicle and passenger vehicle businesses into two independent listed entities. Under the approved arrangement, the commercial vehicle business retains the Tata Motors name, while passenger vehicles, electric vehicles, and Jaguar Land Rover operations will operate as Tata Motors Passenger Vehicles. The demerger became effective October 1 with a 1:1 share entitlement ratio, meaning shareholders receive one share in the commercial vehicle company for every Tata Motors share held. The record date was October 14. The passenger vehicle arm includes electric vehicles, Jaguar Land Rover, and domestic car segments. The commercial business focuses on trucks, buses, and defence mobility solutions. Following the record date, Tata Motors' stock price fell nearly 40% due to technical adjustment post-demerger as the entities are valued independently. The commercial vehicle arm is expected to be listed separately pending final regulatory clearances.