Tata Motors- A Giant In The Electric Vehicle Space In India.

About the company:

The company is India’s largest automobile manufacturer, and it continues to take the lead in shaping the Indian commercial vehicle landscape, with the introduction of leading-edge powertrains and electric solutions packaged for power performances and user comfort at the lowest life-cycle costs.

The company’s new passenger cars and utility vehicles are based on Impact Design and offer a superior blend of performance, driveability, and connectivity. In the manufacturing process, the company’s facilities ensure that every step – from design to production to assembly – follows the highest standards of quality. The company is driven by a passion for excellence, which is reflected across all its operations.

Tata Motors also owns two iconic brands, Jaguar and Land Rover (JLR) which came with the acquisition more than a decade back.

Business Areas:

The company is engaged in the manufacturing of cars, utility vehicles, pick-ups, trucks, and buses. Also, the company is India’s largest and the only OEM offering an extensive range of integrated, smart, and e-mobility solutions. It has operations in various countries through a strong global network of its subsidiaries.

It has operations in India, the UK, South Korea, South Africa, China, Brazil, Austria, and Slovakia through a strong global network of subsidiaries, associate companies, and Joint Ventures (JVs), including Jaguar Land Rover in the UK and Tata Daewoo in South Korea.

Key Financials of the company

Profit and loss account

Key financial Ratios

Key Triggers for investment

Tata Motors’s Market Share:

What lifted Tata Motors’ market share is mainly the improvement of its products in terms of quality, design, and presence in the right segments. The homegrown carmaker has a range of new SUVs starting with the compact segment Punch, Nexon to mid-segment SUVs Safari and Harrier.

Market Leader in Electric vehicles in India

In the Electric Vehicle market, Tata Motors has been an early mover and has scaled up well with a strong suite of products at competitive prices. Tata Motors dominates the EV market with over 90% market share. Their key products, Tigor EV and Nexon EV have been the front runners, with Tata Motors selling in 60 cities across India.

It is planning to invest Rs. 15,000 crore in the EV segment in the next 5 years, a top company official said.

Vertical Integration

The company is working on enhancing vertical integration within the group to drive the electrification of vehicles. Under the ‘One Tata’ approach, already group companies like Tata Power, Tata AutoComp, Tata Elxi, and Tata Technologies contribute significantly towards Tata Motors’ EV plans. Very soon, the group will announce a battery and cell localization plan.

JLR sales supporting Tata Motors to post the profit

In terms of the JLR business, demand continues to be very robust as it has received 125,000 retail orders across geographics. New models, such as defender, new Evoque, and the discovery sport, have been received and are expected to boost the company’s volumes.

Conclusion:

Tata motors is well positioned in the EV segment with the market share of over 90% it also gaining market share in passenger vehicles segment through their newly designed SUVs. Currently it holds over 12% market share in PV segment.

Company posted loss in latest quarter but the long-term growth story looks fantastic for the company.