In my humble opinion Tesla’s valuation shouldn’t be a benchmark. It’s quite richly priced. I find it a bit surprising why markets believe that other companies won’t be able to produce electric vehicles. Sure, they may not be as aesthetically pleasing or efficient as Teslas but reasonably good electric vehicles can be expected from companies other than Tesla.
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Before we try to evaluate how Tata will do in the future of EVs, we should evaluate how it is doing and how it has done till now in the present of traditional automotive. This doesn’t paint a rosy picture at all. Tata Motors has lost enormous money for investors because of its failure to capture the Passenger vehicle market, failing to retain leading market share in CV market with smart competition from Ashok Leyland and others. It’s leadership is unstable. It has to discount its products to sell which is not a smart differentiation strategy.
Crown jewel JLR is the only cash cow. And it has performed well perhaps because it was never integrated into Tata wholly rather allowed to innovate and function independently. Tata just uses it’s tech in domestic cars.
I talked with a friend who recently bought a Tiago and he said they have made a good car but the price at which they discount is sure to lose them money! What sense does it make to sell a car at a loss?
Hyundai was able to create a market for itself in the passenger segment even when it was an outsider and in the face of tough competition.
Tata with so much experience, first mover advantage and such a big name is not able to retain its position!
Disclosure: Just my 2 bits and invested in TM since I was a novice at investing at the time.
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The suspensions leave Waymo as the only company with a fleet of fully self-driving cars – and with no one in the front seat – on public roads in the US, and on course to launch the first robotic taxi service, where members can hail cars via Waymo’s app, by the end of the year.
Self driving cars are are clearly throwing up two major players who have raced ahead of others - Tesla and Waymo. This may create a duopoly kind of situation.
Now with JLR becoming a major supplier for Waymo, Tata Motors can be getting into a sweet spot.
Not sure how much analyst community has been able to get their hands around this month old development.
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That model, the I-Pace from Tata’s eminently British brand Jaguar, is being produced on a contract basis in Graz, Austria, by Steyr, a subsidiary of Canadian auto supplier Magna International (MGA) , using battery packs manufactured by South Korean supplier LG Chem, with profits ultimately flowing to Tata’s headquarters in Mumbai, India.
TATA shares are languishing near a 52-week low as the company cuts production due to weak sales – especially of diesels – in its core U.K. market, but I believe the future is bright for both brands, and concerns over the U.K.'s demise have been exaggerated.
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Monetizing non-core assets
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tamo is howering around its yearly lows,
This will be a negative for tamo in short term.
With increasing sales and new launches tamo is trying to turnaround It’s domestic business
Biggest apprehension of JLR degrowth not coming true and India business gaining momentum.
Clear runway
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Chandra “If you look at the market cap of TML Group, actually there is no value which is accorded to the Tata Motors domestic business, and I’m very confident that will change this year.”
That is a very confident and forward looking statement from chairman…
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Can give a flip to TAMO and M&M
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Consumer Goods Stocks to Buy: Tata Motors (TTM)
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Tata Motors DVR was recently removed from the MSCI India Index. That could perhaps be the reason for the recent fall.
SJ
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