08 Apr , 2022 By : Kanchan Joshi
Analysts at Jefferies like Tata Motors' SUV and EV focussed strategy in the passenger vehicle (PV) segment. It has taken an early lead in electric vehicles (EVs), and the recent investment by TPG has provided the balance sheet strength to drive electrification, they highlighted.
Tata Motors intends to expand its portfolio from 2 EVs presently to 10 by FY26. The global brokerage has Buy rating on Tata Motors shares with a target price of Rs540. Though, risks include a sharp demand downturn in Indian trucks and global luxury autos and JLR's inability to deliver on EVs, as per Jefferies.
EV adoption continues to pick up in India with E2Ws forming 4.3% of total 2Ws in March. Tata Motors showcased its new electric SUV concept Curvv with plans to launch products within the next two years. SUVs based on Curvv will be initially launched with electric powertrain and subsequently as ICE models.
"We like Tata's SUV and EV focussed strategy in the passenger vehicle segment. It has taken an early lead in EVs, and the investment by TPG has provided the balance sheet strength to drive portfolio electrification. Tata intends to expand its portfolio from 2 EVs presently to 10 by FY26," the note stated.
In October last year, The Tata Group's auto arm had said that TPG Rise Climate fund will lead investment in the automaker's new company that will house its passenger electric vehicle business. Shares of Tata Motors have surged over 45% in a year's period, however the Tata Group stock is down about 9% in 2022 so far.
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