Tata Motors Stock Falls Amid Top Executive Exits Ahead of Demerger

Amid reports of senior executives departing Tata Motors Ltd. ahead of its planned demerger, the company’s stock faced significant selling pressure during Friday’s early trading session. Tata Motors' share price opened lower at ₹686 per share on the NSE and quickly dropped to an intraday low of ₹673.30 within the first hour of trading.

As of 1:00 PM IST, Tata Motors share price stood at ₹672.45, marking a 2.46% decline from its previous closing price.

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Tata Motors' Demerger and Executive Exits

Tata Motors Ltd. announced its business demerger strategy in March 2024. As part of this process, the company initiated a talent mapping exercise to reassign top executives handling shared business operations to one of the two resulting entities. According to a Mint report, executive search firm Egon Zehnder, along with consultants from Boston Consulting Group and McKinsey, was brought in to oversee the talent reallocation and finer aspects of the split.

This restructuring has reportedly left some senior executives dissatisfied with their reassigned roles, leading to a series of resignations, as per a consultant associated with the company who spoke on condition of anonymity.

"Following the demerger announcement, executives who previously managed roles across both divisions now find themselves assigned to only one. This has led to a reduction in team size and portfolio responsibilities, prompting some to leave," the consultant stated.

Key departures include Biswaroop Mukherjee (former Head of Human Resources, Commercial Vehicles Business), Anurag Mehrotra (Vice-President, International Business & Strategy), Vinay Pant (Chief Marketing Officer, Passenger Vehicles), Vinay Pathak (Head of Product Planning & Program Management, Commercial Vehicles), Sampada Inamdar (Head of Training & Development), and Devendra Katiyar (Chief Safety Officer).

Additionally, Ashish Tandon, Senior General Manager (Small Commercial Vehicles), also resigned during this period.

Some of these executives have already joined rival firms. Mehrotra has taken on the role of Managing Director at JSW MG Motor India, while Tandon now serves as the Global Head of Customer Excellence at Euler Motors. Mukherjee has moved to Aker Solutions as Vice President of People & Transformation.

Tata Motors Share Price Outlook for 2025

Commenting on the stock's performance, Sumeet Bagadia, Executive Director at Choice Broking, stated that Tata Motors' shares currently exhibit a sideways-to-negative trend on technical charts. He noted that the stock has established strong support between ₹650 and ₹660 and advised existing investors to maintain a strict stop-loss at ₹650.

Bagadia further suggested that the stock could witness a rebound to ₹700 in the near term. For new investors, he recommended entering the stock only after it breaks the ₹700 mark on a closing basis. If this level is breached, Tata Motors’ share price could potentially climb to ₹750.