If you're looking for a great investment opportunity, you should consider buying shares of TATA motors. This Indian automotive manufacturing company is a part of the Tata Group and produces passenger cars, trucks, vans, buses, and coaches. In addition to its cars, Tata also produces buses and trucks in South Korea.
Tata
Motors' diverse portfolio
Tata Motors Limited is a global automobile
manufacturing company with a diverse portfolio. Its products include cars,
sport utility vehicles, trucks, buses, and commercial vehicles. The company's
business in the Philippines will begin with the export of passenger vehicles
such as the Manza. The company has also signed strategic alliances with Bharat
Forge Limited and General Dynamics Land Systems to produce commercial vehicles
and a range of other products.
Tata Motors' diverse portfolio includes sedans
and SUVs. The Tata Indica is Tata's best-selling car, and the Tata Sumo is a
rugged utility vehicle. The company is also making strides in electrification.
Currently, Tata is the only carmaker in the world to sell two electric vehicles
(EVs). By 2025, the company plans to offer ten EVs in its portfolio.
The company also has partnerships with several private and public sector banks to provide finance for its customers. These partnerships include purchase assistance, aggregate financing, fuel financing, and service cost financing.
Currently, Tata Motors targets both new and
pre-owned vehicle customers. Depending on the income and geographic location of
a customer, Tata Motors offers several finance options to choose from.
Tata Motors' diverse portfolio is comprised of
cars, sports utility vehicles, buses, trucks, and a range of other vehicles.
The company has dealerships in 26 countries on four continents. It has a large
consumer base in the Indian subcontinent and also has operations in Italy,
Poland, Romania, and Chile.
Tata Motors is a part of the US$110 billion
Tata Group and offers innovative mobility solutions. It was founded in 1868 by
Jamsetji Tata. Previously, the company specialized in locomotives but later
entered the passenger vehicle market with the launch of the Tata Mobile and
Tata Sierra. In the same year, it also launched the first ever indigenously
made car in the country. Since then, it has expanded its offerings to include
the Tata Nano.
Another aspect of the company's varied
portfolio is its customer support. Its customer support team provides feedback
on product development and oversees supply chains. The company also markets a
highly reliable brand of parts called Tata Genuine.
Its
acquisition of Jaguar Land Rover in 2008
Tata Motors is one of the largest car companies
in the world. The company owns other major brands, including the Anglo-Dutch
steelmaker Corus and the tea company Tetley. The acquisition of Jaguar Land
Rover in 2008 helped the company expand its brand portfolio and improve its
financial performance. The new company plans to start selling the Nano in India
later this year.
The company acquired the British luxury car
manufacturer at a time when the global financial crisis was hitting the car
industry. The carmaker's sales fell by more than 30% in the first 10 months of
the acquisition, and the company recorded a $461 million loss. Because of the
financial turmoil, Tata Motors was unable to refinance the deal. Eventually,
the company reduced the $3 billion bridge loan to $2 billion through a rights
issue.
While the acquisition has created some
challenges for the Tata management team, there are some positive signs. For
starters, it allows Tata to source components from other companies, which
translates into lower costs. However, Tata must avoid nationalism in
Jaguar/Land Rover. The company must also make sure that it manages the brand as
a luxury manufacturer, with sufficient resources for enhancement and
maintenance. In other words, Tata has to transform its thinking and make value
engineering a priority.
Although the JLR line has been very successful
over the years, it has not always met expectations. Several models have
struggled in recent years. Due to aging, sales have slowed, and the company has
lagged behind the competition. Although the company has experienced a slowdown
in Europe due to Brexit, it has recovered well in China and plans to increase
sales in other markets.
The acquisition of Jaguar Land Rover by Tata
Motors was a huge deal for the company. In 2008, Tata Motors purchased the
British luxury vehicle brand from Ford Motor Company for US$2.3 billion. The
deal also freed Ford from two loss-making units. Tata Motors' aim was to
diversify its product portfolio, diversify its market, and add a luxury brand
to its portfolio.
Jaguar Land Rover is an automotive manufacturer
headquartered in Coventry, England. It is a wholly-owned subsidiary of Tata
Motors, an Indian company. The company's primary activity is the manufacture of
Land Rover and Jaguar luxury cars. The company has three assembly plants in the
United Kingdom.
Its
production of buses and trucks in South Korea
TATA motors have a global footprint with its
subsidiaries in the UK, Spain, South Korea, and Mexico. The company is the
world's fifth-largest manufacturer of medium and heavy trucks and ranks number
two in passenger vehicle sales in India. The company has also established a
joint venture with Brazilian body-builder Marcopolo and has bought a 21 percent
stake in Spanish bus manufacturer Hispano Carrera. In addition, it has
established research centers in Spain, India, and South Korea.
After acquiring Daewoo Commercial Vehicles
Company in 2004, Tata Motors has been developing new fuel-efficient commercial
vehicles. The company now accounts for 94% of sales in the MHCV segment and 84%
in the light commercial vehicle segment. In 1991, Tata Motors entered the
passenger vehicle market with its first car, the Tata Sierra. It is now the
second-largest heavy-vehicle manufacturer in South Korea.
The company's commitment to improving the
quality of life for its employees, customers, and communities is evident in its
commitment to corporate social responsibility. It works on four thrust areas
and touches the lives of more than 1 million citizens worldwide. Education is
one of its top priorities, and Tata Motors supports the education of youth and
women. It also supports tree plantation and the conservation of water
resources. The company introduces new technologies that promote environmental
care.
The company also shares its production of buses
and trucks with Fiat in South Korea. As the world's largest automobile
manufacturer, Tata Motors to finance is active in several markets. Its vehicles
include passenger cars, trucks, vans, and buses. It also offers to finance for
vehicles.
Tata Motors is a global brand that focuses on
innovation and engineering solutions. The company ranks among the top
manufacturers of passenger vehicles in India and is one of the leaders in
commercial vehicles in the world. With more than 9 million vehicles on the
road, the company continues to innovate and pioneer new vehicles. Its vehicles
are sold in Europe, South Asia, and the Middle East.
Its
response to the pandemic in India
TATA Motors Ltd announced its results for the
financial year ending March 31, 2020. The company's Jaguar Land Rover unit
returned to profit in the second and third quarters, while the company improved
EBIT by 60 bps and cash delivery by PS560m. It also reported that its Project
Charge initiative delivered cumulative savings of PS3.5 billion. However, the
company's overall performance was adversely impacted by the lockdown and
negative operating leverage.
Tata Motors is working on a turnaround after
losing market share over the past decade. In the last few months, the company
has outpaced its peers and regained market share. The company's executives
attribute this turnaround to a new management focus and better coordination
with dealers.
Tata Motors also has an expanded presence in
Argentina. Its goal is to provide customers with the best experience possible
through innovative products and service excellence. Founded in 1886, the
company is India's largest automaker and is part of a global enterprise with
more than 100 independent operating companies. Its manufacturing division, Tata
AutoComp, is a global automotive manufacturing conglomerate with capabilities
in composite materials, sheet metal stamping, engineering, and supply chain.
Tata Motors shares are trading near critical
support levels at $28 and the 20-day simple moving average. If this support
zone is breached, the price could drop to $22 and possibly lower. Likewise, the
MACD indicator is suggesting weakness at the current price, which makes for a
bearish investment thesis. However, a positive catalyst could invalidate this
bearish investment thesis and normalize the wild swings in the projected top
line.
During April-October, Tata Motors' volumes rose by 22.3%, and the company's cost savings and investment program were cut by 38%. As a result, the Tiago and Nexon models sold at nearly 80 percent higher than last year. Tata Motors was the fifth-largest carmaker in India last year but jumped to third place this year. Its market share jumped from 5.5% last year to 7.6% during the four-month period.
In order to combat the epidemic, Tata Motors
has taken a number of measures, including implementing a communication
campaign. In addition to banning travel in the affected areas, the company has
implemented a biometric attendance system and a card swiping system.
Additionally, Tata Motors has restricted visitor access to its manufacturing
facilities. It has also issued guidelines to pregnant women and employees to
work from home. In addition, the IT department has distributed information on
the tools available for remote working.