Tata Motors rallied 9% in 2 days. But is it in top gear?

Tata Motors' stock has hit the gas pedal this week. It jumped nearly 9 per cent in just two days, currently trading at Rs 692 on May 8, 2025, as investors cheered the company's progress in its commercial vehicle (CV) demerger, and the recently concluded India-UK Free Trade Agreement (FTA). The rally brings some much-needed momentum for the auto major, which has lagged behind after peaking earlier. Still, the stock trades roughly 40 per cent below its 52-week high of Rs 1,179, leaving many investors wondering—has the real turnaround begun, or is this just a pit stop? What the company does Tata Motors , a part of the Tata Group, is one of India's largest automobile manufacturers. It operates across three key segments: Passenger vehicles (with a strong EV push), Commercial vehicles , and Luxury cars through its UK-based subsidiary, Jaguar Land Rover (JLR). The company has a growing presence in international markets and is viewed as a bellwether in both India's EV and CV sectors. What's moving the stock? 1. Shareholder nod for CV demerger The company received shareholder approval to spin off