Tata Motors which is one of the best car brands in India is gearing up to manufacture Jaguar Land Rover luxury cars at a new facility centre in Tamil Nadu.
The premeditated investment for this new Tamil Nadu plant is estimated to be around 84,000 crores manifesting Tata Motors’ commitment to expanding its presence in the Indian automotive market.
Investment in Expansion
Tata Motors revealed its plan to invest in a new manufacturing facility in Tamil Nadu with an investment of Rs 9000 crore.
This enlargement plan aims to strengthen Tata Motors’ foothold in India which is the world’s third-largest automobile market.
Auto industry sources have confirmed to Times of India that Tata Motors is mulling over a multi-product line combination for the Tamil Nadu plant which will comprise passenger vehicles from the Jaguar Land Rover range.
The official announcement is expected in June or July this year.
The agreement was formalized with the Tamil Nadu government through MoU signed in Chennai.
Fresh Employment Opportunities
Tata Motors’ new plant is expected to be located in the Ranipet district near Vellore which is Tata’s second manufacturing unit in southern India complementing the existing facility in Dharwad Karnataka.
It is expected that Tata’s new Ranipet plant will approximately offer 5,000 job opportunities contributing to the economic growth and development in the region.
Jaguar Land Rover Electric Cars
Tata Motors is looking to import its Jaguar Land Rover luxury electric cars under the new government policy that lowers import taxes for companies agreeing to set up local manufacturing.
Tesla is expected to start importing cars to India and make an investment in the country.
But Tesla’s plan if realized would make it the first tata’s plans if realized would make it the first local car maker to opt for the policy designed to increase the use of electric vehicles.
Government Policy
The policy was announced in March it cuts import taxes to 15% from as high as 100% on some EV models if the car maker invests at least $500 million and sets up a domestic facility within 3 years in the country.
Tata could be the next beneficiary it comes out of nowhere you know we have been having these discussions as to whether the existing players can also make use of this policy and if yes what would they have to do right?
So, understanding this policy right now and again you know these guidelines are still getting firmed up and are going to be published soon by the government.
But as understand this policy framework right now it is only for new investments specifically for Electric Mobility made in the geographic confines of India which is why Tesla becomes a beneficiary because Tesla is likely to invest up to $3 Billion in two to three whatever yeah.
We won’t know the number exactly until Elon Musk comes and makes that announcement, but that is going to be a specific Electric Mobility electric vehicle car manufacturing plant setup in India.
Electric Vehicle Plant in Tamil Nadu
Now Tata Motors is already looking at investing another billion in a fresh plant in Tamil Nadu, but is that plant going to be specific to electric vehicles is it going to be specific to Jaguar Land Rovers?
EV segment is something that is yet to be seen but if Tata Motors does want to import certain JLR models from its factories outside of India mostly in the United Kingdom then it will have to commit a certain investment of at least $500 million.
It seems as if the policy stands right now into manufacturing of electric vehicles in India yeah but this comes out of nowhere we’ve been discussing other Chinese players and other German players but never thought of Tata also bringing Jaguar Land Rover which could also happen under the new existing EV policy
Remember this is a breaking story there’s no confirmation from Tata just as yet whether they will be using the new EV policy to bring in more Tata’s Jaguar Land Rover cars in India.
Tata Motors Share Price Target 2030
Tata Motors’ passenger vehicle business has enhanced its capability of value creation over the next few years.
Its passenger vehicle business has seen an impressive turnaround after 2020 with market share accelerating up from mid-single digits to 13.5% as of 9MFY24.
Nomura India said Tata Motors focuses on its safety, attractive design, and feature-rich vehicles. It further said TTMT might have two models among the top three SUVs in India.
The foreign brokerage said Tata Motors may be striving to become the second-largest passenger vehicle player in India by Financial Year 25-26.
The company is also at the vanguard to drive EV penetration in India with a 70%+ market share currently and plans to have ten EV models in its portfolio by Financial Year 26.
The company aims to have 50% of its volumes from EVs by 2030.
The company stock has been in demand for a longer period and has been offering a dividend yield of 2.0 consistently from the year 2013.
So, currently, the stock price of Tata Motors is trading at Rs.990 on the NSE, and by the end of December 2024, it is expected to trend at Rs.1,434.
Tata Motors’ share price target 2030 is expected to trend at a maximum of Rs.3990 and a minimum target of Rs.2896.
(Expert Advice is suggested before making any investment decision)
Rationales of share price target of 2030.
- Effective February 1st, 2024 there will be an average price hike of 0.7% across PV models including EVs as reports suggest.
- The company will start production from April 2024 of electric vehicles at the standard plant which was acquired from Ford India for Rs.725 crore in January 2023.
- The Tata electric Harrier model will be launched in 2024 with a notable range of 500km which will be built on a dedicated Gen II EV platform.
- TMs “Fleet Edge” platform has connected 5 lakh commercial vehicles to to upscale their uptime via smart digital technology.
- The EV segment is proving revolutionary in its segment by holding a market share of 72% in the PV EV car sales in India in the first half of 2023.
- The company sold 3,400 PV EV cars by the end of June 2023.
- Jaguar Land Rover is the most luxurious car brand in the world identifying elegance, dominance, and enigma.
- Jaguar Land Rover recently introduced their EV in the SUV category “I-Pace” and off-road vehicle Defender.
- The top competitors of Tata Motors in India are Maruti Suzuki, Hyundai, Mahindra etc.
Conclusion
The share price history of the company suggests that the share price graph has been growing year by year since October 2019.
The share price soared from Rs.613 to Rs.823 and last five years the company’s NSE share price has gone up by 368.48%.