Tata Motors witnessed a rise in share price levels even on Tuesday even as the broader market remained volatile after the auto-maker announced its ambitious investment plan. The auto giant said that the overall investment in its PV business (including EVs) is expected to reach anywhere around ₹33,000 crore to ₹35,000 crore in the next 5 years.
At 12:10 pm, Tata Motors' shares were trading at ₹728.50, experiencing a marginal rise of 1.50% on the National Stock Exchange.
Tata Motors is also targeting a 280 basis points (bps) rise in market share in the PV segment by FY27. This surge will majorly come from new product launches. In the passenger vehicle (PV) segment, Tata Motors is targeting a market share of 18–20% by FY30. This growth is expected to be driven largely by new models.
The company is planning to launch 7 new vehicles and 23 product refreshes across both internal combustion engine (ICE) and electric vehicles (EVs) by FY30. On the EV front, Tata Motors is also focusing on expanding its product portfolio and supporting the development of charging infrastructure.
The management is expecting a moderate 3-5% growth in domestic commercial vehicle (CV) volumes over the next five years. Tata Motors is aiming for stronger growth prospects, targeting a 40% market share in the CV business in FY27E.
Analysts Weigh in
So far this year, shares of Tata Motors have struggled to trade in the green territory, witnessing a decline of over 2% on the National Stock Exchange.
"Overall, Tata Motors is targeting a 40% market share (up from 37.1% in FY25), Ebitda margins in teens, and healthy positive FCF (7-9% of revenue post tax) by FY27. Capex for the CV business is expected to remain steady at 2–4% of revenue....rising global uncertainty remains a key risk," JM Financials stated in its report.
The brokerage firm has maintained a 'Buy' rating on the stock with a March'27 Sum of the Parts- valuation(SOTP) of ₹815.
"We expect the gradual uplift in margins to continue over the next few years as all OEMs are focussed on margin improvement. We believe execution on expanding the SCV market share is key to watch for, as that is critical to achieve the market share target set by management," Nomura stated in its report.
