Tata Motors PV shares: What should investors do - Buy, sell or hold?

Tata Motors Passenger Vehicle Ltd (TMPV) continues to demonstrate strong growth momentum in the domestic market, supported by a robust product pipeline and leadership in the electric vehicle (EV) segment.

ICICI Direct said, "Tata Motors' domestic passenger vehicle business is entering a structurally stronger growth phase supported by a robust product pipeline, improving market share, and leadership in India’s fast-growing EV segment. The company delivered record quarterly volumes in Q4FY26 with a 37% YoY growth and improved its market share to end FY26 with 13% share, reflecting strong traction for key models such as Nexon and Punch. Recent launches of Sierra, refreshed Punch and petrol version of Harrier & Safari continue to see progressive growth in customer traction, across bookings, enquiries and deliveries. In addition, Tata Motors remains the dominant player in India’s EV market with roughly mid-40% market share, supported by a diversified EV portfolio across price points and increasing consumer acceptance, leading to the highest-ever EV volumes of ~27K, a 69% YoY growth in Q4’26. With EV penetration in its portfolio rising and continued expansion of charging infrastructure and value propositions such as lifetime battery warranties, Tata Motors is well positioned to benefit from India’s long-term electrification trend."

On the global front, JLR's performance has faced temporary setbacks due to external factors, though recovery signs are emerging.

The brokerage noted, "While JLR’s near-term performance has been impacted by the cyber incident, global macro pressures, and weakness in China’s luxury auto market, the underlying brand strength and product strategy remain intact. The production disruption in Q3 resulted in temporary volume and profitability pressure; however, management indicated that production across key plants has already normalised and as a result, Q4 volumes rose significantly with a 61% QoQ growth. Importantly, JLR is entering a significant product cycle over the next two years, including the launch of Range Rover Electric, new Jaguar models, and vehicles based on the next-generation EMA platform. In addition, core models such as Range Rover, Range Rover Sport, and Defender continue to command strong global demand and maintain high average selling prices, reinforcing the brand’s premium positioning. Over the medium term, however, given the global geo-political tensions, supply chain issues and rise in key commodity costs, we expect volumes & margin recovery to lag the ambitious capex cycle embarked by JLR, thereby straining the B/S and limiting the upsides."

Balancing strong domestic growth with global uncertainties, ICICI Direct maintained a neutral outlook.

It said, "Given uncertain demand & margin recovery at JLR despite robust volume growth at Indian operations as well as increasing leverage on B/S, we assign HOLD rating on the stock and value it at Rs 370 on SOTP basis (10x/1.5x EV/EBITDA to India/JLR business FY28E)."