Tata Motors m-cap hits all-time high of ₹4 lakh crore

The market capitalisation of Tata Motors breached the ₹4 lakh crore mark for the first time after Japanese brokerage Nomura upgraded the auto stock to ‘buy’ from ‘neutral’.

Nomura’s target price for Tata Motors is at ₹1,294, an 18% upside compared to the high of ₹1,094 the stock hit during intraday today.

Shares of the Jaguar and Land Rover’s parent company rose 6.47% to hit an all-time high of ₹1,094.10 on the BSE.

This comes a month after the automaker’s luxury arm JLR said its plans to revive its four-wheel drive sport-utility vehicle (SUV) Freelander as an electric vehicle in China with support from its Chinese joint venture partner Chery.

Chery Jaguar Land Rover will pivot its product range with the rebirth of the Freelander brand, with a new portfolio based on Chery’s EV architecture, manufactured in its existing manufacturing facility in Changshu, Tata Motors said in a statement.

The upcoming launch builds on the two companies’ 12-year relationship. The new model of collaboration leverages fully both parties' complementary strengths – with Chery holding a leading automotive market position in China while JLR has heritage and design strength – creating mutually beneficial prospects for the future, the statement said.

Tata Motors, which acquired JLR from Ford for $2.3 billion in 2008, is on track to make the British luxury carmaker debt‑free in FY25. The turnaround is driven by JLR’s focus on high-margin SUVs including Range Rover, Range Rover Sport and Defender.

JLR plans to spend 15 billion pounds over the next five years to transition to EVs. The luxury carmaker plans to launch six Land Rover BEVs by 2026. The Jaguar brand will become all-electric by 2025 with prices starting from £100,000.

In the domestic passenger vehicle market, Tata Motors plans to invest ₹16,000 crore to ₹18,000 crore on electric vehicles between FY25 and FY30.

With four EV models in its portfolio, Tata Motors cornered 73% share of the EV market in India in FY24. The carmaker will launch the Curvv EV next month.

Tata Motors aims to increase its passenger vehicle market share to 18-20% by growing faster than the industry and leveraging new model launches and powertrain shifts towards CNG and EVs. In FY24, Tata was India’s third largest carmaker with 14% share. It is targeting 16% share by FY27 with the launch of Curvv and Sierra.

Tata Motors says it will strengthen its multi-powertrain strategy to maximise on growing powertrains. EV penetration in Tata Motors’ portfolio increased to 13% in FY24 from 9% in FY23 while CNG penetration rose to 16% in FY24 from 8% in the previous fiscal.

Tata Motors expects its EV division to become EBITDA (earnings before interest, taxes, depreciation, and amortisation ) breakeven by 2025-26.