The rally in Tata Motors Passenger Vehicles share price today comes after the company launched the new Sierra in India, marking the return of the iconic brand after over 20 years. Tata Sierra will be the company's other offering in the mid-size SUV space, wherein it has around 4.4% market share, driven solely by Curvv's limited traction.

The auto major has launched the all-new Sierra at an introductory price of ₹11.49 lakh (ex-showroom Delhi), positioning the car as a premium, lifestyle-focused mid-size SUV with tech-rich features. The company has revealed the price of only the entry-level variant of the new 5-seater SUV, while the complete pricing will be announced next month.

Tata Motors Passenger Vehicles' (TMPV) management sees the new Sierra as a crucial portfolio bridge to the fast-growing midsize SUV segment, with the model expected to attract a new customer base and lift Tata's SUV market share from 16.9% to 20% - 25%, potentially targeting ~2% overall market share.

Analysts believe the launch of Sierra is in sharp contrast to its strong presence in Micro SUVs (Punch with 32.1% share) and Compact SUVs (Nexon with 24.4% share), both intensely competitive segments.

"As the company already commands ~74% share of its volumes in SUVs, Sierra adds the missing pillar in the portfolio," said Chirag Jain, Deputy Head of Research at Emkay Global Financial Services Ltd.

Tata Motors Passenger Vehicles targets double-digit growth in FY26 backed by strong post-GST demand momentum, and plans to extend the Sierra lineup with EV/AWD variants.

"Given the category size and Tata Motors Passenger Vehicles' brand strength, Sierra has the potential to scale up to around 5,000 units per month, in our view, thus offering an upside potential to current estimates," said Jain.

Emkay Global maintains its estimates unchanged, while reiterating an 'Add' rating on Tata Motors Passenger Vehicles shares with a target price of ₹400.

Tata Motors Demerger

Tata Motors demerger took effect from October 1, 2025, and the company was split into two separate listed entities — Tata Motors Passenger Vehicles Ltd, which houses Jaguar & Land Rover (JLR) and electric vehicle (EV) businesses, and Tata Motors Ltd, which comprises the company's commercial vehicle operations. Tata Motors' Commercial Vehicle arm shares were listed on November 12.

Tata Motors Passenger Vehicles shares began trading as a standalone entity on October 14, valued at around ₹400 per share post record-date adjustment.

Tata Motors Passenger Vehicles reported a multi-fold surge in net profit for the second quarter of FY26 due to one-time gain tied to the demerger of its commercial vehicles unit. TMPV' net profit in Q2FY26 jumped to ₹76,170 crore from ₹3,446 crore in the year-ago period.

However, the company's revenue during the quarter fell 14% to ₹72,349 crore from ₹83,656 crore, year-on-year (YoY). Tata Motors Passenger Vehicles volumes dropped in Q2FY26 following production stoppages in September after a cyber incident and the planned wind down of legacy Jaguar models ahead of the launch of new Jaguar.

The carmaker's wholesales in Q2 declined 24.2% YoY to 66,000 units, and the retails fell 17.1% YoY to 85,000.

At 1:10 PM, Tata Motors PV share price was trading 1.52% higher at ₹357.80 apiece on the BSE.

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