Analysts at Jefferies such as Tata Motors’ SUVs and EVs focused on the strategy in the passenger vehicle (PV) segment. It has taken an early lead in electric vehicles (EVs), and recent investments by TPG have strengthened the balance sheet to drive electrification, he highlighted.
Tata Motors intends to increase its portfolio from 2 EVs at present to 10 by FY26. Global Brokerage has given Buy Rating on Tata Motors Shares with a target price of 540. However, according to Jefferies, risks include a sharp drop in demand for Indian trucks and global luxury autos and JLR’s inability to deliver on EVs.
EV adoption continues in India with E2W making up 4.3% of the total 2W in March. Tata Motors showcased its new electric SUV concept Curve with plans to launch products within the next two years. SUVs based on the Curvv will initially be launched with an electric powertrain and later as the ICE model.
“We like Tata’s SUV and EV centric strategy in the passenger vehicle segment. It has taken an early lead in EVs, and the investment by TPG has provided strength to the balance sheet to drive portfolio electrification. Tata currently has 2 EVs. seeks to expand its portfolio to 10 by FY26,” the note said.
In October last year, the auto arm of the Tata group said that the TPG Rise Climate Fund would lead investments in the automaker’s new company that will house its passenger electric vehicle business. Shares of Tata Motors have gained over 45% in the one-year period, though Tata group stock Down about 9% so far in 2022.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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