Nomura’s Perspective on Tata Motors Share Price March Demerger Nomura India recently analyzed the potential impact of Tata Motors Ltd (TTMT) demerging into commercial vehicle (CV) and passenger vehicle (PV) businesses. Despite this structural change, Nomura suggests that immediate valuation adjustments may not occur due to the well-run nature of India CVs, JLR, and PVs, coupled with transparent disclosures.
Medium-Term Prospects for Tata Motors Share Price March
Businesses Nomura anticipates that post-demerger, both CV and PV businesses will gain more operational autonomy, enabling them to pursue their respective strategies effectively. However, Nomura places a bullish outlook on Tata Motors’ PV business, citing its remarkable turnaround post-2020, driven by a focus on safety, appealing design, and feature-rich vehicles.
Tata Motors Ambition in the PV Segment
Tata Motors aims to secure the position of the second-largest PV player in India by FY25-26, as per Nomura’s analysis. This ambition aligns with reports suggesting Hyundai Motor India’s exploration of an IPO in India, albeit with higher margins.
EV Penetration and Value Creation
Tata Motors leads the EV penetration in India with over 70% market share currently and plans to expand its EV portfolio to 10 models by FY26, targeting 50% volume from EVs by 2030. Nomura foresees significant value creation if Tata Motors successfully executes its EV strategy.
Margin Analysis and Potential Upsides
Despite challenges like negative EV margins, Tata Motors PV business demonstrates promising margins, with room for improvement, especially in the EV segment. Nomura also identifies potential upside in the CV business, driven by market share gains and profitability, particularly in e-Buses and e-LCVs-Tata Motors Share Price March.
Demerger Implementation and Strategic Benefits
Tata Motors’ demerger process, expected to take 12-15 months, aims to streamline operations and enhance shareholder value. The management anticipates synergies across PV, EV, and JLR segments, particularly in EVs, autonomous vehicles, and vehicle software, promising superior customer experience and growth prospects-Tata Motors Share Price March.
