Should We Buy Shares of TATA Motors?

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.

Buy Shares of TATA Motors

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.