Tata Motors Ramps Up EV Discounts as Tesla Eyes Entry in Indian Market

Tata Motors stock: The shares of the auto giant surged over 1.4% on the bourses on Thursday after the company announced a set of discounts for its existing and new customer base in the EV segment. From no-cost charging benefits to zero down payments, Tata Motors has announced various offers for its customer as its EV sales crossed over 2,00,000.

On Thursday, the shares of the auto company closed at Rs 690.55 price level, up by 1.40% on the National Stock Exchange.

Interestingly, these offers come at a time when multiple reports indicate that US-based luxury carmaker Tesla is planning to enter India. Tesla has already started hiring for multiple positions in the region and is reportedly in talks to set up its initial base in Maharashtra, according to the Economic Times.

Tata Motors has introduced a 45-day period wherein its new and existing customer base can avail an exchange bonus of up to Rs 50,000 on any passenger vehicle. To ensure ease of financing, the company has also announced a zero down payment.

"As a part of this 45-day bumper celebration, TATA.ev has unveiled a range of benefits for both new and existing customers looking to purchase their favorite Tata EV," the company said in a statement.

The company also introduced offers to enhance charging convenience."In an effort to enhance charging convenience, the company is extending the free charging benefit of 6 months at any Tata Power charging station, and is now providing free installation of a 7.2 kW AC Fast home Charger with the purchase of an EV," the company added.

Tata Motors Share Price

The auto giant's share price trajectory has been largely subdued as muted demand play took a toll on the overall car sales. In the last 6 months, the stock has declined by over 36%. The shares are currently trading at a discount of 41% from its 52-week-high of Rs 1,179.

As demand revives, analysts are expecting a potential upside in the upcoming quarters, but overall risk continues to loom owing to Trump's tariff threats. On top of this, heightened competition in the EV industry can also put pressure on the bottom line.

"There have been investor concerns around weak demand environment in key markets of JLR like EU, China, UK, along with the risk of import tariffs getting implemented in the US. EBIT margin guidance of 10% by management may be tough to achieve in current demand environment, we believe. Launching EVs in a period when demand is not picking up, would also add to margin risk," CLSA said in its report.

The global brokerage firm has revised its rating to 'high conviction outperform', with a target price of Rs 930.