All You Need to Know Before Investing in Tata Motors Share

Tata Motors is the automobile arm of the prestigious Tata Group.

The company designs manufactures, assembles, and sells passenger, utility, commercial vehicles, and defence equipment.

It also offers vehicle financing, car service, spare parts, and accessories.

Tata Motors has an established presence in the global luxury car market via its subsidiary Jaguar and Land Rover (JLR).

Core Business

Tata Motors is a market leader in the commercial vehicle segment. It also has a leading market share in India's passenger electric vehicle (EV) segment.

Tata Motors Business Overview

	Tata Motors
Products	Cars
	Sports utility
	Trucks and buses
	Defence
	Financing
	Spare parts
	Service
Brands	Indica
	Harrier
	Tiago
	Hexa
	Tigor
	Nexon EV
	Altroz
	Xenon
	Yodha
	Jaguar
	Land Rover
Competitive Advantage	Geographical diversification of revenue
	Established market position in commercial vehicles
	Market leadership in electric vehicles (EVs)
	Strong legacy of Jaguar Land Rover

Data Source: Annual Reports

Key Personnel

Creating a strong management team is a vital component of running a successful business.

A firm is only as good as the individuals who manage it. Checking management quality entails doing a background check on persons in charge of the business.

Here are the key personnel of Tata Motors:

• N Chandrasekaran - Chairman - Non-Executive Director
• Om Prakash Bhatt - Independent Director
• Hanne Sorenson - Independent Director
• Vedika Bhandarkar - Independent Director
• Kosaraju Veerayya Chowdary - Independent Director
• Al Noor Ramji - Independent Director
• Mitsuhiko Yamashita - Non-Executive & Non-Independent Director
• Thierry Bollore - Non-Executive & Non-Independent Director
• Girish Wagh - Executive Director
• P B Balaji Group - Chief Financial Officer
• Maloy Kumar Gupta - Company Secretary

Subsidiaries

The Tata group is a large conglomerate and Tata Motors being one of its biggest companies has many subsidiaries and different brands in various domains.

As of 31 March 2023, Tata Motors’ operations included 90 consolidated subsidiaries, two joint operations, four joint ventures and 11 equity-accounted associates, including their subsidiaries, in which the company exercises significant influence.

The main operational hubs are the United Kingdom (UK), South Korea, Thailand, South Africa and Indonesia.

It also has centres of design excellence in Italy and the UK, and its vehicles are marketed in Africa, the Middle East, South and Southeast Asia, Australia and South America.

Manufacturing subsidiaries -

• Jaguar Land Rover Automotive Plc
• Tata Motors Passenger Vehicles Ltd
• Tata Passenger Electric Mobility Ltd
• Tata Motors Body Solutions Ltd
• Tata Daewoo Commercial Vehicle Company Ltd

Design, engineering and consulting subsidiaries -

• Tata Technologies Ltd
• Tata Motors Design Tech Centre
• TRILIX Srl

Insurance and financing subsidiaries -

• Tata Motors Insurance Broking and Advisory Services Ltd
• TMF Holdings Ltd
• TML Holdings Pte. Ltd

History of Tata Motors

Tata Motors has a decent presence in India as well as global markets through sale of Jaguar and Land Rover brand passenger vehicles.

Over the years, it has done various mergers and entered into joint ventures in the global markets. Its acquisition of Jaguar and Land Rover have been the key ones that helps to drive the company's business.

Tata Motors also holds the record of first Indian automobile company to get its shares listed in New York stock exchange (NYSE).

In recent years, Tata Motors has been called out for posting poor numbers owing to the cyclical nature of its business. For instance, in 2017 and 2018, its performance was positively impacted by the fortunes of its UK luxury car business, Jaguar Land Rover.

However, in a few months, amidst Brexit uncertainty, the demand slumped in the UK and Europe. Even then, JLR had pinned its hopes on the luxury vehicle market in China. But the US-China trade war significantly hurt JLR's sales in 2018.

Skip forward to present and the company is a pioneer in the electric vehicle (EV) market in India. Its domestic EV brands have become a common sight on Indian roads such as Tata Punch, Nexon, Tiago and Tigor.

Given the immense popularity of its brands, Tata Motors plans to grow its EV business aggressively. It plans to drive up EV penetration to double digits by launching ten new EVs by 2026.

The company has also unveiled TATA.ev, its new brand identity for the EV market.

The company seems well-placed to capitalise on the growing consumer preference for electric vehicles in India, leading the market with a share of more than 80%.

Corporate Social Responsibility (CSR)

The Tata Group, as you know it, is known in actively assisting in the improvement of the quality of life of the people in the communities, giving preference to local areas.

As a matter of fact, the company will spend at least 2% of the average net profit of its India Operations for the next three financial years.

• Employability Kaushalya - Under this program, the company provides training in technical & automotive trades, agriculture, among other things.
• Education Vidyadhanam - The Tata group company provides special coaching classes for secondary education & competitive entrance exams such as IITJEE, NEET, civil services.
• Health Aarogya - Health awareness program for women, and other measures aimed at combating infant and child malnutrition.

Market Cap and Shareholding Pattern of Tata Motors

The Tata group's commitment to innovation and growth is visible from its active investments in research and development, exploring cutting-edge fields like electric vehicles, AI and sustainability solutions.

This keeps them ahead of the curve and open new avenues for wealth creation for the group and its investors.

In 2023, the market capitalisation of the Tata Group's 28 listed entities soared to Rs 27 trillion as of 26 December 2023, as against Rs 21 trillion as of 30 December 2022. This implies a return of 28%.

Tata Motors’ promoters currently hold around 46% stake in the company, with no shares having been pledged.

To know more, check out the latest shareholding pattern of TATA MOTORS.

Recommended Videos on Tata Motors

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Here’s our filtered playlist on Tata Motors.

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More About India’s Electric Vehicle Leader

Tata Motors is the dominant force in the Indian electric vehicle (EV) market. This dominance will likely continue for at least a few more years, perhaps longer.

And every potential car buyer in India is acutely aware of it.

As the world transitions from conventional vehicles to EVs, Tata Motors will make a name for itself globally, just as it has already done in India.

The company is taking a big step towards EV push and expanding its Sanand plant in Gujarat.

The Sanand plant is Tata Motors' largest manufacturing facility in India. It currently produces a wide range of vehicles which includes the Tiago, Nexon, and Altroz.

The expansion of the Sanand plant will see the addition of a new lithium-ion battery production facility, expected to be operational by as early as 2025.

The Tata Group's investment in lithium-ion batteries is part of its broader strategy to transition to electric vehicles. The company is also working on developing its own electric vehicle charging infrastructure.

Here are links to some very insightful Equitymaster articles on Tata Motors:

• Tata Motors More Valuable than Maruti: Crowd Folly or the New Reality?
• Charging Ahead: India's Top Electric Vehicle Stocks Poised for Explosive Growth
• Investing in Tata Motors? Don't Make this Mistake
• Tata Group's Next Big Leap in the EV Battery Sector
• Top 6 EV Stocks to Watch Out in Nifty's Runup to 40,000

Happy Investing!