Tata Motors share price rallied over 3% on Thursday, marking gains for a second consecutive session, amid optimism surrounding a potential trade agreement between the United States and the United Kingdom. Tata Motors shares rose as much as 3.45% to ₹704.00 apiece on the BSE.

Tata Motors stock price was the top gainer on the Nifty 50 index. The auto stock has surged 8.6% in two sessions.

US-UK Trade Deal

According to a report by The New York Times, the US is expected to announce a trade pact with the UK later in the day.

US President Donald Trump hinted at the development on his Truth Social account, stating he would hold a news conference at 10 AM Washington time to discuss “a major trade deal with representatives of a big and highly respected country.” However, he did not disclose the name of the country involved.

Tata Motors, the parent company of luxury carmaker Jaguar Land Rover (JLR), stands to benefit from a potential US-UK trade deal, as the US market accounts for nearly 20% of JLR’s revenues. JLR had temporarily halted vehicle shipments to the US in April after a 25% tariff was imposed on all auto imports. Although recent reports suggest that shipments have resumed, there is no official confirmation.

India-UK FTA

Investor sentiment was also buoyed by the signing of the India-UK Free Trade Agreement (FTA) earlier this week. The FTA is expected to create new growth opportunities for JLR in the Indian market, potentially supporting higher sales.

Tata Motors Demerger

Tata Motors share price also received a boost after the shareholders approved the demerger of the company’s Commercial Vehicle (CV) business into a separate, publicly listed entity. The decision received near-unanimous support, marking a significant step in the company’s restructuring strategy.

As part of the demerger, existing shareholders of Tata Motors will receive one share of the newly listed CV business for every share held in the currently listed entity.

At 10:05 AM, Tata Motors share price was trading 2.86% higher at ₹699.95 apiece on the BSE. 

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