Mumbai: Tata Motors, India’s biggest automotive company by sales, has trumped Maruti Suzuki in the market capitalization sweepstakes for the first time in nearly seven years, reflecting the increasingly robust performance for all its products that straddle both categories and national boundaries.
On Tuesday, shares of Tata Motors rose 2.2% to settle at Rs 859 on BSE. During the day, it jumped 5.4% to reach its 52-week high of Rs 886.
Tata Motors Ltd – DVR (differential voting rights) stock gained 1.6% to Rs 573. However, shares of Maruti dipped 0.4% to Rs 9,957. The combined market valuation of Tata Motors (Rs 2,85,516 crore) and Tata Motors Ltd – DVR (Rs 29,119 crore) stood at Rs 3,14,635 crore. This was Rs 1,576 crore more than Maruti’s Rs 3,13,059 crore valuation.
Shares of Tata Motors have almost doubled over the past year, driven by robust sales at JLR, which accounts for two-thirds of the parent’s revenues. JLR delivered the highest wholesales in 11 quarters during the quarter ended December 31, 2023.
Tata Motors’ net automotive debt stood at ₹38,700 crore at the end of the second quarter. Of this, the domestic business accounted for ₹7,600 crore debt. JLR plans to slash its net debt to less than 1 billion pounds by the end of FY24 and become net cash positive by FY25.
In the domestic electric vehicle market, Tata Motors holds the pole position with nearly 75% market share. EVs constitute 13-15% of its overall passenger vehicle sales in India. The carmaker is eyeing 50% of its wholesales to be electric by 2030.
Comments are closed.