Tata Motors - DVR

2cents on Tata Motors and EV in general

The resale value of an EV is 25% lower compared to an ICE vehicle because the battery itself contributes 40% of the cost of the vehicle. And lifespan is about 6-8 years.
And due to this factor, even financing is done at a higher rate for EVs
For Newer ones:
ICE Nexon is priced between INR7.39 lakh - INR8.99 lakh (ex-showroom) compared to the electric Nexon which comes at INR13.99 lakh - INR16.85 lakh. Making this affordable is the key and with higher localization, this can work for Tatas’
Moreover tata motors competitive advantage comes from

  • Product
  • Sales and marketing
  • Capacity Building
  • Ecosystems solutions

Focus on driving ranges and different body styles. India-specific product and not a product that worked for UK US.
Brand building for awareness creation and driving aspiration
Leveraging Tata group’s EV ecosystem
Localizing and aligning with govt mandates. There is no charging standardization today in india.

Tata has rolled out its EVs in Nepal as of now and they are likely to expand in other neighboring countries. Tata Motors is looking at creating national level charging infra with help of Tata power, this will keep them as a top brand in the green mobility space for sure.

Tata Motors has decided to make a splash with 10 EV launches by 2025

Cars and 2W are the space to watch out for. Estimates are really good and signs are also present as per the commentary from Govt and Companies.

Disclaimer : Invested in 2W - Endurance
Cars - Tata motors

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Depreciation is function of fixed assets like factory/machinery. if the company has added new plants and machinery(that became operational) in recent years, it would lead to increase in depreciation values. any fixed assets need to be depreciated over 20-30 years based on the life(of assets) considered by company.

As per below article, Russia-Ukraine war can further threaten availability of semiconductors. Two material Neon gas (50-60% world production by Ukraine) and Palladium (30-40% world production by Russia) which is used in manufacturing of semiconductors could exaggerate semiconductor availability issue which recently started to improve. In short term it may not affect availability due to inventory build up by manufacturer and end users but if this war continue for another couple of month, that will seriously affect players like tata motors.

Disclosure: Invested.
https://www.livemint.com/technology/tech-news/chip-makers-stockpiled-key-materials-ahead-of-russian-invasion-of-ukraine-11647177268489.html

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Auto players have aggressive target to reach 48% market share in EV by 2030 and 63% by 2035 for European markets. From below image it looks like JLR is smaller player in European market (there is always possibilities to increase their market share from winners, obviously if they can perform) and have less aggressive target on EV compared to peers.

Happy to listen to view of the other fellow members.

Disc: Invested

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