Tata Motors , one of India's leading automotive manufacturers, is experiencing significant market movements as it approaches a major corporate restructuring. The company's shares have seen a notable decline in recent days, coinciding with updates on its demerger plans and the resumption of operations at its Jaguar Land Rover (JLR) subsidiary following a cyberattack.

Share Price Movement and Demerger Details

Tata Motors' stock has witnessed a decline of 6.80% over four consecutive sessions, settling at Rs 689.30. This drop has pushed the share price below the Rs 700 mark, a development that has caught investors' attention. The decline comes as the market anticipates the company's upcoming demerger, with the record date set for October 14, 2025.

The demerger will split Tata Motors into two separate entities:

1. TML Commercial Vehicles
2. Tata Motors Passenger Vehicles (including Jaguar Land Rover)

Shareholders will receive shares in both new entities in a 1:1 ratio, meaning for each share of Tata Motors, investors will get one share each in the two new companies.

Trading Restrictions and Debt Transfer

In preparation for the demerger, several trading restrictions have been implemented:

• Trading restrictions on Futures & Options and Margin Trading Facility positions began on October 8, 2025.
• New positions in these instruments are prohibited until the demerger process is completed.

Additionally, Tata Motors is transferring Non-Convertible Debentures worth Rs 2,300 crore to the commercial vehicle arm as part of the restructuring process.

JLR Operations Resume Post-Cyberattack

In a separate but significant development, Jaguar Land Rover, a wholly-owned subsidiary of Tata Motors, has announced the phased restart of its manufacturing operations. This comes after a cyberattack in early September that disrupted production.

Key points regarding JLR's restart:

• Production resumption began on October 8, 2025, at the Electric Propulsion Manufacturing Centre and Battery Assembly Centre in the UK.
• Vehicle manufacturing in Nitra, Slovakia, and the Range Rover and Range Rover Sport production lines in Solihull, UK, are also restarting this week.
• JLR is implementing a new financing scheme to support its suppliers during the restart phase, offering early payments to aid cash flow.

Impact on JLR's Q2 FY26 Performance

The cyberattack had a significant impact on JLR's second-quarter performance:

The company noted that the Range Rover, Range Rover Sport, and Defender models accounted for 76.70% of total wholesale volumes in Q2 FY26, slightly down from 77.20% in the previous quarter but up from 67.00% year-on-year.

Looking Ahead

As Tata Motors navigates through these significant changes, investors and market watchers will be keenly observing the impact of the demerger on the company's valuation and performance. The successful resumption of JLR's operations will be crucial for the company's recovery in the coming quarters.

Both new entities resulting from the demerger are expected to be listed on the BSE and NSE, subject to regulatory approvals. This listing will provide investors with focused exposure to either the commercial vehicle segment or the passenger vehicle segment, including the luxury brand JLR.

As these developments unfold, Tata Motors continues to be a focal point in the Indian automotive sector, with its strategic moves likely to have far-reaching implications for the industry and its stakeholders.

Tata Motors , the Indian multinational automotive manufacturing company, has announced that its subsidiary Jaguar Land Rover (JLR) will resume production operations from October 8, following a shutdown due to a cyberattack. Additionally, the company has introduced changes to its supplier payment structure to support the restart. However, JLR has also reported lower sales in Q2 due to multiple challenges.

Production Restart

JLR will begin a phased restart of its manufacturing operations, starting with:

1. Electric propulsion manufacturing centres in the West Midlands, UK on October 8.
2. Gradual resumption at stamping facilities in Castle Bromwich, Halewood, and Solihull.
3. Vehicle manufacturing in Nitra, Slovakia, and Range Rover production lines at Solihull.

The production had been halted since August 31 due to a cyberattack, reportedly causing losses of £50.00 million per week.

New Payment Structure

To support suppliers during the restart phase, JLR has introduced a fast-track financing scheme:

• Eligible suppliers will receive upfront cash, replacing the standard 60-day payment terms.
• The majority of payments will be made shortly after order placement.
• This change aims to improve cash flow for suppliers and enhance supply chain stability.

Q2 Sales Challenges

JLR experienced lower sales during a challenging second quarter. Tata Motors reported that its JLR division recorded retail sales of 85,495 units in Q2, representing a 17.10% decrease compared to the same period last year. The company's wholesale volumes also declined to 66,165 units, marking a 24.20% year-over-year decrease.

The sales were impacted by multiple factors including:

• A cyber incident that occurred in September
• The phase-out of older Jaguar models
• US tariffs that reduced sales volume

Market Response

Despite the announcement of production restart, Tata Motors shares traded 1.70% lower at ₹700.45, down 3.00% over the past month.

Implications

• Improved Cash Flow for Suppliers: The new structure could potentially improve cash flow for suppliers, as they will receive a significant portion of their payment earlier in the production cycle.
• Enhanced Supply Chain Stability: By providing earlier payments, JLR may be able to strengthen relationships with key suppliers and ensure a more stable supply chain.
• Working Capital Management: This change may require adjustments in JLR's working capital management strategies to accommodate the earlier outflow of cash.
• Sales Recovery: JLR will need to address the factors affecting Q2 sales, including mitigating the impact of the cyber incident and strategizing for the phase-out of older models.

Context within Tata Motors' Operations

While this announcement specifically pertains to JLR's operations and supplier network, it's worth noting that Tata Motors continues to show robust performance across its various segments. According to the latest SIAM (Society of Indian Automobile Manufacturers) report:

These figures demonstrate Tata Motors' strong presence in both passenger and commercial vehicle segments, underlining the importance of efficient supply chain management and production across all its operations.

The production restart, new payment structure for JLR suppliers, and efforts to address sales challenges align with Tata Motors' broader strategy of optimizing its global operations and maintaining strong relationships within its supply chain. As the automotive industry continues to face challenges and transformations, such measures could play a crucial role in ensuring resilience and competitiveness.