TATA MOTORS - Global Ambitions
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Printed Date: 14/May/2024 at 5:03pm
Topic: TATA MOTORS - Global Ambitions
Posted By: nav_1996
Subject: TATA MOTORS - Global Ambitions
Date Posted: 24/May/2007 at 3:08am
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Tata Motors appear to be attractively priced currently.
It has market cap of 27000 CR at CMP of about 715. Looks like all -ve of impending slowdown in 2008 is built in this price. Slowdown can not be massive considering that economy is still doing well. Its share of non-cyclic revenues is going up and stands at about 24% now. It has some interesting subsidaries. Worth mentioning is Tata Technolgies which is 1000 CR company now (grew by 75% this year). Though profit margins are low currently this should be valued like Geometric Soft and Tata Motors holds about 82% stake. Other subsidary which has been growing rapidly is its finance arm and constrction equipment business. |
Replies:
Posted By: kannanravi1
Date Posted: 25/May/2007 at 1:40am
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Tata motors is a growth cum value play. At the current market price, as you have rightly pointed outm, the worst has been priced in. But the future looks very rosy for tata motors. Recent global statistics show per capita vehicle ownership in India to be one of the lowest in the world ( 4 cars per 1000). Compare this to the global average of 39 per 1000. To reach the global average india will have to make another 35 million cars!! Currently I believe India makes between 1-2 million vehicles. So there is huge potential here. Tata motors has a strong brand name and will definitely capture a good share of this, especially with the 1 lakh car coming out. Tata motors has one of the shortest concept-to-market lead time among auto majors across the world. It also has one of the best margin among auto makers that cater to both PV and CV segments (tata motors numbers should not be compared to maruti or M&M, it should be compared to toyota, ford, GM etc. which have products across all categories). Besides, tata motors is taking a 'wal-mart' style approach to international growth. Wal-mart typically grows into a region/country, and tries to become a major player in that area, before trying to go into other geographies. Tata has demonstrated this with stong market share in S.Africa and steadily growing market share in CV sector of S.Korea. And also, the subsidiaries look very interesting. Especially the auto finance company. To top it all, when they come out with the 1 lakh car, it will be very difficult for anybody to compete with them in that segment. Globally, there is a lot of focus now on cheap cars (even in US!!). I think Tata has a strong moat which will become much more wider when they launch the 1 lakh car ------------- kannan |
Posted By: nav_1996
Date Posted: 09/Jul/2007 at 12:26pm
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Two very positive news for Tata motors last week
1 Tata Motor Finance going global http://www.business-standard.com/compindustry/storypage.php?leftnm=lmnu1&subLeft=1&autono=290312&tab=r 2 Maruti does not want to join 1 lakh car race http://www.moneycontrol.com/india/news/business/maruti-wont-drive-rs-1-lakh-car-/08/28/290542 |
Posted By: CHINKI
Date Posted: 09/Jul/2007 at 10:47am
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Tata Motors sees India, China as automobile growth drivers
MUMBAI: Tata Motors, India’s largest commercial vehicle maker, is currently preparing a blueprint that will launch a slew of new models across categories in the next two years as Asia’s third largest economy gears up to face competition from global car makers in the fast growing automobile market. “Our challenge will be to develop and produce technically-advanced vehicles for the domestic and overseas market,” chairman Ratan Tata said at the company’s 62nd annual general meeting which was later marred by an electricity failure that led Mr Tata to hurriedly conclude the question and answer session. Some of the new launches include the new generation Indica, Indigo, Sumo and trucks, small car, a cross-over vehicle and a new pick up truck (assembled in Thailand and Latin America). The company’s aggressive new product programme follows a growing stagnation of vehicle demand world-wide. However, India and China will be the growth drivers said Mr Tata. Passenger vehicle sales were up marginally in the last quarter at 4% to 51,840 units, commercial vehicle sales dipped by 2% to 61, 699 units affected by higher interest rates. “Our challenge in the coming years will be the ability to produce vehicles, increase capacity and successfully meet competition,” added Mr Tata. The ambitious Rs 1 lakh car will be manufactured from Singur and completed in time despite political opposition. Construction has begun and orders for the equipment have been placed and the car will be launched by the middle of next year. The styling and designing have been completed. “Despite all the political crossfire that’s taking place, we will bring out the car in time,” said Mr Tata. “By putting up the project in Singur, we have transformed the quality of life, prosperity and livelihood and transformed it into an oasis, said Mr Tata. The launch of the car will create a new paradigm in low cost personal transport, carve out a new market segment and reach a broader base of the pyramid, said Mr Tata. Meanwhile, Tata Motors is drawing up plans to bring down costs. It is also focusing on expanding overseas business in markets such as South Africa, Latin America, Thailand and China to reduce the dependence on the economic cycle of any one market and focus on hybrids, fuel cells and cleaner diesel vehicles for the future. ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: nav_1996
Date Posted: 09/Jul/2007 at 11:46am
| They are also planning to list some of the profitable subsidaries to unlock value. Their subsidaries alone have 6000 Cr + revenue. |
Posted By: tyler_durden
Date Posted: 10/Jul/2007 at 3:29pm
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1 lac car idea can backfire as well...we have discussed this on some other thread as well...in automotive space Maruti is the best...if you are talking about car penetration being low...and in coming years this number will rise then which company will benefit th most???
Maruti....and in recent times the way maruti has launched its new cars and the way they have become aggressivfe i dont doubt that maruti will perform much better than tata in this space.... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: tyler_durden
Date Posted: 10/Jul/2007 at 3:30pm
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W ecan restart this thread or change it to Maruti vs TATA vs Bajaj Vs Hero honda...something like that where in we can compare biggies of automotive sector and pick the best one... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: tyler_durden
Date Posted: 10/Jul/2007 at 3:39pm
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Maruti...
cmp - 809 mcap - 23300 crores PE - 14.90 PAT last year - 1189 crores PAT last quarter - 448.56 crores expected to grow at 25-30% for next 2-3 years diesel plant started..but right now only swift coming in diesel...once sx4, wagon r also come in diesel then maruti will tighten its grip even more..after sales service and affordability favour maruti.... tata has only presense in passenger car segment thru indica..and minor share of indigo, safari,sumo etc...but its minuscle commercial vehicle space tata is undisputed leader.... TATA cmp - 740 mcap - 28500 crores PE - 16 PAT Last year 1916 crores PAT Last quarter 576 crores Tatas to launch Rs 1 lakh car by mid-2008 2007-07-09 17:08:58 Source : Moneycontrol.com Email Print Version Watch Video Tata Motors Chairman Ratan Tata said the company would roll out Rs 1 lakh car by the middle of 2008. Tata also lined up plans to launch new versions of Indica, Indigo and Sumo. Apart from that, Tata also announced that the company is going to launch a new pick-up truck, a new generation truck and a vehicle with the mix of SUV and car. He added that next couple of years will be most crucial in terms of product innovation. the news is positive for the stock ... but once the car hits the road only then we will see real impact (+ve or -ve) .. so tata and maruti both show good prospects but which will outshine the other only time will tell.... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: Mohan
Date Posted: 10/Jul/2007 at 9:44pm
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What does Tata Motors expect the 1 lac car to bring to it ? Profits or Volume ? ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: xbox
Date Posted: 10/Jul/2007 at 5:45am
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What does Tata Motors expect the 1 lac car to bring to it ? Profits or Volume ? -------------- Increased vehicles market share. We should remember Tata motor is Indica revived company.
<<On different note>> Auto is not a wealth creating business. In such a highly competitive market, it works like commodity. ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: CHINKI
Date Posted: 10/Jul/2007 at 11:42am
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Tata Motors’ Ace plant idling
Tata Motors Ltd, India’s largest truck maker, potentially faces a seven-month delay in the start of commercial production of its popular Ace mini truck at its fully operational Rs2,500 crore plant in Pant Nagar, Uttarakhand. That’s because the state pollution control board has stopped issuing environmental clearances after a court order, which stemmed from a complaint by a former officer against the board. That dispute is unrelated to Tata Motors and the auto giant is not the only firm that has been forced to slam the brakes on industrial operations in the state. “Industrial activity has come to a standstill because of the stay,” conceded Bansidhar Bhagat, Uttarakhand’s minister for forests, environment, watershed management and transport. Tata Motors’ 225,000 unit per year plant was to go on stream in March and may be unable to commence production until October because of the court dispute. People close to the situation said Tata Motors had produced around 800 Ace mini trucks from the new plant, but was forced to stop because the expected clearance did not materialize. The court case behind the problem was a complaint by a former member secretary of the state pollution control board who told the court that the board was flouting norms after he was prematurely removed from his role. The Supreme Court then put a bar on issuing no-objection certificates (NOCs). The next hearing in the matter is scheduled for 1 October. “More than a hundred NOCs to be issued by the state pollution control board are pending with the department,” said N. Ravishankar, principal secretary of Uttarakhand. “However, the department just cannot issue the NOC, in deference to a Supreme Court stay.” A Tata Motors spokesperson said their factory in Pant Nagar was completed in a record 11 months. “Commercial production will begin only after receiving all statutory clearances,” the spokesperson said. “Once a plant is set up, the systems and machinery have to be tested out—and hence some trials were done. The statutory clearance required is the ‘consent to operate’ issued by the state government, and we understand that the state government is seized of the matter,” he said in an email response to Mint. With production at the Uttarakhand plant being delayed, the company’s Pune plant is likely to be hit by capacity constraints, especially since the company last month launched Magic, the passenger vehicle variant of the Ace. The Pune plant has a capacity to manufacture 2-2.5 lakh vehicles annually. “We are servicing the market from out of Pune as of now,” the company spokesperson said. The commercial vehicle business unit of Tata Motors’ Pune plant produces a range of heavy and medium and vehicles of 15-25 tonnes capacity, and the Tata 407 and 709 lines in the light commercial vehicles segment. The plant also produces the Safari and Sumo range of utility vehicles, the Ace, the newly launched Winger and now the Magic. Pune also produces Indica and Indigo cars and is preparing for variants on that platform. A Tata Motors executive, who did not wish to be named, said the Pune plant is scheduled to produce 6,000 units of Ace this month, including Magic. The company’s new executive director, commercial vehicles business unit, P.M. Telang, had announced, at the launch of the Magic on 18 June, that production of the Ace would eventually make way for the Magic model, while the Ace would entirely be produced at the Uttarakhand plant. It is not clear whether the company will delay the roll-out of the Magic and focus on the Ace, an already existing product that is in demand in the market. Tata Motors has been steadily increasing production of the Ace, which is expected to touch 75,000 units this year at Pune. The Ace has been a hit for the company and its success has seen a string of competitors, including Mahindra & Mahindra Ltd, Force Motors Ltd and Bajaj Auto Ltd, jumping onto the mini-truck bandwagon with similar projects in the pipeline. According to the company spokesperson, the Magic will also be produced at Uttarakhand once the plant starts production. “We will arrive at a decision on the distribution of Ace production, between Pune and Uttarakhand, once (the) Uttarakhand (plant) gathers steam,” the spokesperson said. As to the dispute, Ravishankar recounted that C.V.S. Negi, a former ONGC Ltd official, had joined the state pollution board on deputation in 2003 for three years. However, the state government repatriated Negi in July 2005 before the completion of his tenure. Immediately thereafter, Negi moved the high court, which quashed the state government order in March 2006. The state government in turn moved the Supreme Court, which first ordered a stay on the high court order, in April 2006, and then ordered a stay on the NOCs, in an order dated 7 May. Vijay Kumar, member secretary of the state pollution control board, said the Supreme Court had given 1 October as the next date of hearing in the case. Kumar, an Indian Forest Service officer, took over in May, nearly two years after Negi was repatriated to ONGC. During the interim period, the member secretary, forest, assumed the additional charge of the board. After the stay order, Uttarakhand chief secretary S.K. Das filed a submission in the Supreme Court, detailing the loss to industry because of the non-issuance of NOCs by the state pollution control board. Negi could not be reached for comment. Source : livemint.com ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: tyler_durden
Date Posted: 11/Jul/2007 at 12:09pm
-------------------------------------------------------- currently indian car industry clocks around 1.2 - 1.3 million cars a year...and if tata comes up with 1 lac car then it will alone touch 1 million mark....but again: 1. how much tata will make on a single car? maruti makes 2500-3500 on maruti 800 post tax and after dealer's margin etc etc .... and with emission norms and safety norms getting stricter day by day tata will have to continuously improve the rs 1 lac car...it means tata will have to invest in r n d ... cost will go up... sometimes i feel ratan tata made a big goof up by making that bold statement ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: basant
Date Posted: 11/Jul/2007 at 2:46pm
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Is the plan for making profits going to come out from selling spares etc?That is what many car manufacturers do. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tyler_durden
Date Posted: 11/Jul/2007 at 3:27pm
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you hit the bulls eye basant ji...
maruti had a profit of 1190 crores last year...out of this around 350+ crores was from spares and accessories itself....then additional 250-300 crores come from financing and insurance business...so i wud say 50-60% of the profit comes from these associated businesses...car making and selling is not a profitbale business itself.... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: basant
Date Posted: 11/Jul/2007 at 4:09pm
....that is why I fear buying a car ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tyler_durden
Date Posted: 11/Jul/2007 at 4:17pm
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i would like to tell a few basic facts about cars:
total cost incurred on a car = Price of car + fuel cost + servicing cost + insurance cost assuming life of a car to be 10 years price of car = fuel cost = servicing + insurance cost buying a car is not tough but maintaining one is... ferrari checks the networth of its tenative buyer so as to ensure that he/she can maintain the car... dealers are not at all interested in selling the cars...they re more interested in servicing the cars because that is where real money is made...a single accidental service is better than selling 5 cars or so... spares --- the biggest business of manufacturers as well as for vendors.... maruti does not have any control over its big vendors.... lumax..asahi..etc cant be pressurised to cut the prices...organised market of spares is very small as compared to the grey market.... at the end of the day your car depreciates very fast.... i bought one for 4.25 lacs in october 2003....and got its revaluation done last week...it will sell for 2.3 lacs...50% depreciation.... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: CHINKI
Date Posted: 11/Jul/2007 at 6:22pm
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Tata Motors plant in S.Africa likely
MUMBAI: Tata Motors' plan to set up an assembly plant for its vehicles in South Africa will fructify once that country's government approves the 'Moto-Industry Development Programme', an official said today. "The South African government is reviewing the scheme and is likely to decide on it by end-October," South Africa's High Commissioner to India Francis Moloi said here. Tata Motors vehicles were extremely popular in South Africa and it would be good for the company, if an assembly plant is put up in the country, he said, adding service to customers would also become easier and better. Confirming its plans for the South African market, a Tata Motors spokesperson told PTI: "South Africa is a key market for us. In fact, it constitutes the largest export market for us, both in commercial and passenger vehicles segments." "If we have an operation base in that country it would help in better logistics and customer service." Besides, shipment costs too would be reduced "if we set up shop in South Africa," he said. However, he declined to comment on the time period by which the plant would be put up in South Africa. ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: tyler_durden
Date Posted: 11/Jul/2007 at 6:29pm
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Interesting piece of news ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: tyler_durden
Date Posted: 11/Jul/2007 at 6:31pm
-------------------------------------------------------- South Africa's automotive industry Vehicle production is the second-biggest industry in South Africa's manufacturing sector, and one of the fastest growing. Vehicle exports have grown around ninefold since 1994, and now account for nearly 7% of the country's exports. Overall, the automotive industry - including manufacturing, distributing and servicing of vehicles and components - is the third largest sector in the economy, after mining and financial services, contributing in the region of 7% to gross domestic product. All of the major vehicle makers are represented in South Africa, as well as eight of the world's top 10 auto component manufacturers and three of the four largest tyre manufacturers. Growth, investment South African vehicle exports are projected to rise strongly through 2006-08, following a record year for South African vehicle production and sales in 2005. Domestic new vehicle sales soared by a record 22% in 2004, followed by a new record 27% in 2005, making the country one of the best performing automobile markets internationally. Between 1999 and 2005, production of cars and light commercial vehicles grew from 315 000 to almost half a million units, while exports more than doubled from approximately 60 000 to 140 000 units. Capital expenditure by the industry - investment in production and export facilities and supporting infrastructure - also more than doubled between 2000 and 2005, from around R1.5-billion to R3.6-billion, with further massive increases projected for 2006-08. Most of this has been foreign investment, with the parent companies of local car manufacturers expanding local operations. All of the large manufacturers in the country have launched major export programmes in recent years - the latest being General Motors. GM, Toyota, VW, Ford, Nissan ... In April 2005, General Motors awarded its South African arm a contract worth US$3-billion (around R18-billion) to manufacture a new global version of its Hummer sports utility vehicle - the H3 - for export to markets in Europe, Asia Pacific, the Middle East and Africa. GM said it would make a US$100-million investment in product development and production at General Motors South Africa's plant in Port Elizabeth in the Eastern Cape, which currently manufactures Opel and Isuzu vehicles. This is over and above the $50-million that GMSA invested in plant and equipment upgrades and the $80-million it invested in the new Isuzu KB in 2004. Then in May 2005, Toyota South Africa announced an increased export drive that will see the company continuing its Corolla export programme to Australia - and also exporting a new light commercial vehicle and sports utility vehicle to Europe and Africa as part of Toyota's global IMV (innovative international multipurpose vehicle) project. Soon after Toyota's announcement, Volkswagen South Africa announced that it would start building trucks and buses, possibly for export to Africa and other parts of the world. In 2004, Volkswagen SA announced a R25-billion export programme that will see the company exporting about 2 300 of its new Golf 5 cars each month through 2009, mostly to Japan and Australia, but also to New Zealand, Brunei, Singapore, Sri Lanka, Hong Kong, Indonesia and Malaysia. Other announcements by car manufacturers in 2004: Ford announced that it would be investing R1-billion in starting a local export programme. The company said this would involve doubling production capacity at its Pretoria plant to about 80 000 units a year. DaimlerChrysler confirmed that the new Mercedes-Benz C-Class would be manufactured in SA from 2007. The company plans to almost double production at its East London plant to roll out up to 80 000 units a year, a large portion of which will be exported. Nissan announced that it would begin exporting fully built-up Hardbody one-ton bakkies to Europe, Singapore, Australia and New Zealand from August 2005. Tata Motors, India's second-largest car manufacturer, invested some R40-million in a bus assembly factory in Johannesburg. Motor Industry Development Programme The catalyst for this phenomenal growth has been the government's Motor Industry Development Programme (MIDP). Introduced in 1995, the programme is due to run, with gradual phasing out, until 2012. The MIDP has boosted exports by enabling local auto manufacturers to include total export values as part of their local content total, then allowing them to import the same value of goods duty-free. This has allowed auto makers to concentrate on manufacturing certain vehicles or components for export, while importing other models. The MIDP also grants a production-asset allowance to vehicle manufacturers that invest in new plants and equipment, giving them 20% of their capital expenditure back, in the form of import-duty credits, over a period of five years. Competitive advantages South Africa is ranked 19th in the world for vehicle production, accounting for about 0.7% of the world's vehicle output. Despite its relatively small size and production abilities, South Africa's automotive industry offers a number of competitive advantages to international concerns. These include a world-beating cost ability on short or low-volume runs, competitive tooling costs, and a high degree of manufacturing flexibility. The local industry also has good access to southern hemisphere and African markets, and offers right-hand drive production facilities. The right-hand drive models of Mercedes Benz C Class, BMW 3 Series, Toyota Corolla, Ford engines, VW Trucks and VW Golf/Jetta are all built on South African soil. By the end of 2006, these will be joined by the right-hand drive version of General Motors' new H3. The South African industry boasts several unique technologies, such as differential locks for off-road vehicles, aluminium welding technology for radiators, and the ability to design components such as air cleaners and air conditioners that are able to cope with the higher temperatures and dust levels in Africa. The country's first-world production facilities are coupled with access to raw materials and cheap electricity, as well as stable transport and telecommunications infrastructure. The Automotive Industry Development Centre and the Gerotec testing centre near Pretoria are world-class facilities for research, design, testing and training. New investment opportunities are being created for the industry by the introduction of free trade agreements with the European Union and the South African Development Community, as well as the US government's African Growth and Opportunity Act. Auto component manufacturers There are more than 200 automotive component manufacturers in South Africa, and another 150 which supply the industry on a non-exclusive basis. Pressure on prices, and the increased trend for suppliers to operate globally, has led to several mergers between component and original equipment manufacturers. These initiatives have produced the intended results, with locally made cars as well as components being exported in growing numbers. Key component exports include stitched leather car seat covers, catalytic converters, tyres, silencers/exhaust pipes, and road wheels and parts. Export growth rates have been high - around 40% per annum between 1994 and 2004 - and are expected to remain high. Recent investors in the auto components sector include: Mario Levy (Italy) - sewing plant for stitched leather seats Woco Group (Germany) - acoustic systems for DaimlerChrysler Leonie AG (Germany) - interior accessories Almec Spa (Italy) - high pressure aluminium castings AMD Group (USA) - exhaust vibrator balancers Saffil Ltd (UK) - mats for catalytic converters -------------------------------------------------------- in strong presense of Toyota, nissan etc it wud be interesting to see how tata positions itself.... this in light of the fact that tata is famous for its diesel vehicles and outside asia diesel is not considered a good fuel.... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: kulman
Date Posted: 11/Jul/2007 at 6:35pm
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A general observation:
Lots of Africa-centric talk is doing round in various corporate circles. Knowledgable people from engineering industry are comparing opportunities in Africa to the likes of ASEAN tiger economies boom of early 90s. Even RJ Bhaiyya also mentioned about Africa in one of the interviews.
If TEDdies know about other major developments w.r.t actions of Indian corporates in Africa, please do post.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: smartcat
Date Posted: 18/Jul/2007 at 5:59pm
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/07/18/cntata118.xml - Tata sets wheels in motion for Ford deal
For the uninitiated, Jaguar competes with the German trio Audi/Benz/BMW in Europe and USA. Jaguar cars are known to be sporty and luxurious. Land Rover is the king of SUVs. Infront of a Land Rover, Mitsubishi Pajero and Toyota Landcruiser are like tractors! However, both the companies are loss-making and Ford has been trying to get rid of them for quite sometime now. |
Posted By: tyler_durden
Date Posted: 18/Jul/2007 at 6:01pm
awesome news.... jaguar is a great brand in luxury cars...my dream car too  ... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: CHINKI
Date Posted: 18/Jul/2007 at 10:44pm
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TATA VENTURES INTO SAUDI ARABIA CAR MARKET
DUBAI, JULY 17: Indian carmaker, Tata Motors, have ventured into Saudi Arabia's passenger car market with the launch of its three car models. Tata had launched its 2008 models of Tata Indica, Tata Indigo and Tata Marina, which conforms to all safety, quality and reliability specifications of the Kingdom, at a price range of SR30,000-35,000, Arab News reported. MORE DETAILS ON: http://www.financialexpress.com/latest_full_story.php?content_id=170303 - FE ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 18/Jul/2007 at 10:42am
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Small change in the news:
http://economictimes.indiatimes.com/Tata_MM_may_bid_for_Jaguar__Land_Rover/articleshow/2215874.cms - TATA, M&M MAY BID FOR JAGUAR & LAND ROVER There are some concerns by the Analysts as mentioned in the above article: Industry watchers indicate that if the proposed acquisition goes through, then it’s going to be a challenge for Tata Motors. These marquee brands have very high production costs and require phenomenally high engineering and research capabilities as they compete with likes of BMW and Audi. The Tatas do not possess such capabilities. “Taking over the brand is easy, bringing down production costs and turning around the company successfully, will be the challenge,” analysts said. It’s a test that Ford failed. ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: xbox
Date Posted: 18/Jul/2007 at 11:07am
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over the brand is easy, bringing down production costs and turning around the company successfully, will be the challenge,” analysts said. It’s a test that Ford failed.
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TATA & problem in turing-around. Strange. Analysts are free to talk anything....  ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: CHINKI
Date Posted: 26/Jul/2007 at 3:04pm
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Flash : TATA HAVE BAGGED JAGUAR & LAND ROVER DEAL ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 01/Aug/2007 at 10:02pm
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The firm says forex benefits are largely due to the foreign currency convertible bonds it issued in last 2-3 years Mumbai: Tata Motors Ltd, India’s largest truck maker, said on Tuesday that its net profit for the quarter ended June rose to Rs497.22 crore, a jump of 30% from the corresponding period a year ago, led by foreign exchange gains as a stronger rupee lowered its repayments against dollar-denominated debt. That has helped offset slowing sales of commercial vehicles. Sales in the three-month period grew 13% to Rs7,631.28 crore from the previous year. The rupee has risen more than 9% against the dollar this year, making it cheaper for Indian companies to purchase foreign goods and repay dollar-debt. On 31 July, the rupee closed at 40.37 to a dollar. MORE DETAILS ON : http://www.livemint.com/2007/08/01003208/Rupee-helps-push-Tata-Motors-n.html%20 - LIVEMINT ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: nav_1996
Date Posted: 01/Aug/2007 at 10:38pm
| Looks like a value and growth buy at 670. |
Posted By: CHINKI
Date Posted: 01/Aug/2007 at 10:54pm
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Next two or three quarters may be bad because of high interest rate.
But with TATA you don't know?? Some acquisitions, 1 Lac Car, etc will act as trigger to zoom. Basanthji, small question. OPM is 10 to 11%. But ROE and ROCE is more 30% for the last 3 to 4 years. How this is possible?? ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: basant
Date Posted: 01/Aug/2007 at 11:01pm
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So it does. The downside looks capped unless the market tanks it for interest rate concerns all the money for the 1lac car has been put up so now we have to wait for results to reflect that from a year or two. But autos is not something that I follow so closely. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: CHINKI
Date Posted: 01/Aug/2007 at 11:39pm
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Management is good, ROE, ROCE and other financial paramenters are excellent, performance has been very good for the past few years, scalability is there and so on.
Then why PE is only 14.5?? Is it because company is growing slow or only EPS growth is expected or anything particular to manufacturing industry??? (I remember of having read in some other article that this industry requires constant infusion of capital) ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: basant
Date Posted: 01/Aug/2007 at 11:42pm
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Cyclicals have lower PE's. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kg
Date Posted: 01/Aug/2007 at 11:52pm
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I have a friend working in Tata Motors and he said that they are coming out with 2-3 new models in the next 6-9 mths and that they shd also benefit from the interest rate decline... ------------- Lets rock |
Posted By: CHINKI
Date Posted: 02/Aug/2007 at 2:27pm
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SHAREKHAN REPORT ON TATA MOTORTS
PUBLISHED AFTER Q1FY08 RESULTS Result highlights: Tata Motors’ Q1FY2008 results were below our expectations due to lower than expected margins. However, the bottom line was buttressed by a higher foreign exchange (forex) gain on account of strengthening of the rupee during the quarter. The net sales of the company grew by 5.3% to Rs6,056.8 crore during the quarter on the back of a 1.3% growth in volumes and a 3.9% growth in realisations. However a high raw material cost and lower volumes particularly in the commercial vehicle (CV) segment adversely affected the margins (excluding the forex gain /loss), which declined to 9% from 11.9% in the same quarter last year. Hence, the operating profit declined by 19.9% to Rs546.3 crore. A little higher interest and depreciation charges caused the adjusted net profit for the quarter to drop by 39.4% to Rs259 crore. After accounting for the forex gain of Rs205.9 crore, the net profit for the quarter grew by 22.4% to Rs466.76 crore. Looking at the consolidated performance, the company’s sales grew by 13.3% to Rs7,631.3 crore while the profit excluding the forex gain declined by 27.7% to Rs308.2 crore. The profit after tax, extraordinaries and forex adjustments grew by 35.7% to Rs516.1 crore. We continue to take a cautious outlook on the CV industry, considering the high interest rates and lower availability of finance. We expect the lacklustre trend to continue for another quarter at least. Things are, however,expected to improve somewhat in the third quarter as freight demand may receive a boost with the advent of the festive season. Particulars Q1FY2008 Q1FY2007 % yoy chg Net sales 6056.8 5749.6 5.3 Total expenditures 5510.5 5067.3 8.7 RM cost 4357.9 4265.1 2.2 Change in stock -137.3 -385.3 Staff cost 351.9 302.4 16.3 Other expenditure 938.1 885.2 6.0 Operating profits 546.3 682.2 -19.9 Other income 86.3 85.9 0.5 EBIDTA 632.6 768.1 -17.6 Interest 81.6 72.6 PBDT 551.1 695.6 -20.8 Depreciation 166.8 151.4 PBT 384.3 544.2 -29.4 Tax 125.4 116.4 Adjusted PAT 258.9 427.8 -39.5 Extra-ordinary item 207.9 -46.0 (including forex gain/loss) Reported PAT 466.8 381.9 22.2 EPS (Rs) 12.1 10.0 OPM (%) 9.0 11.9 PATM (%) 4.3 7.4 In view of the lower than expected profit margins, we are downgrading our consolidated FY2008 earnings by 10% to Rs54.5 for FY2008 and by 5% to Rs62.9 for FY2008. At the current levels, the stock trades at 11xits FY2009E consolidated earnings and is available at an enterprise value (EV)/earnings before interest,depreciation, tax and amortisation (EBIDTA) of 5.9x. We maintain our Buy recommendation on the stock with a price target of Rs792. Slower volumes lead to lower top line growth Tata Motors delivered a lacklustre performance in Q1FY2008 with the overall volume growing by just 1%. The CV sales, particularly those of medium and heavy commercial vehicles (M&HCVs), recorded a disappointing performance in Q1FY2008 due to lower availability of freight and finance. Many financiers in their endeavour to reduce exposure to the automobile sector withdrew from the market. Overall, the company’s sales grew by 5.3% on the back of a 1.3% growth in volumes and a 3.9% growth in realisations. Though the utility vehicle (UV) sales continued to do well due to repositioning of the Safari range, the car sales declined by 1.3% in Q1FY2008 as sales of Indigo and Indica were affected by the recent launch of Chevrolet Spark and Mahindra Logan. Sales performance Particulars Q1FY2008 Q1FY2007 % growth Commercial vehicles 61,633 63,082 -2.3 M&HCV 32,592 36,560 -10.9 LCV 29,041 26,522 9.5 Passenger vehicles 52,573 50,150 4.8 Total domestic 114,206 113,232 0.9 Exports 13,889 13,161 5.5 Total 128,095 126,393 1.3 During the quarter Tata Motors’ market share in the CV segment declined from 66% to 62% while its share in the passenger segment fell from 17.8% to 16.4%. This was mainly due to constraint regarding the engine supply, which is expected to be rectified going forward. Lower volumes, high RM costs impact margins. The operating profit margin (OPM) of the company (excluding the forex gain/loss) for the quarter declined by 190 basis points to 9% as against our expectations of 10.8%, due to lower volumes, higher raw material cost and high fixed overheads. As a result, the operating profit declined by 19.9% to Rs546.3 crore. The company has already started to take remedial actions to cut its costs. For instance, in the wake of poor demand, the company decided to lay off some temporary workers during the quarter. All these efforts are expected to improve the OPM in the second quarter. Higher interest and depreciation charges on account of capital expenditure (capex) led to a 39.4% fall in the company’s net profit for the quarter to Rs258.9 crore. After accounting for the forex gain/loss,the reported PAT grew by 22.4% to Rs466.8 crore. Strong consolidated performance The consolidated net revenues of the company increased by 13.3% to Rs7,631.3 crore during the quarter on account of the strong performance of its subsidiaries. The OPM declined by 90 basis points to 11.3% (excluding the forex gain/loss) as the consolidated net profit declined by 27.7% to Rs308 crore. The profit after tax, extraordinaries and minority interest grew by 30.3% to Rs497.2 crore. The consolidated performance was impacted by the decline in stand-alone profitability, while the performance of the subsidiaries improved considerably. The contribution of the subsidiaries to the consolidated sales has increased from 20% this quarter compared with 14% in the corresponding previous quarter. Tata Daewoo (TDCV) The Q1FY2008 sales of TDCV increased by a strong 57% to Rs736 crore, while the profit after tax (PAT) grew equally well by 55% to Rs31 crore. The volumes for the quarter grew brilliantly by 70.2% to 2,780 units with the Korean market showing signs of recovery. The company was also able to raise its domestic market share from 21.3% to 30.3% in the quarter. Telco Construction Equipment Co (Telcon) In Q1FY2008, Telcon’s turnover rose by 45% yoy to Rs478 crore while the PAT grew brilliantly by 113% to Rs66 crore. This was on the back of a 40% growth in the volumes and better operating efficiencies. Telcon continued to be the leader in the excavator segment with a 53% market share. The company was able to raise its market share in both wheel-loaders and backhoe loaders to 26% and 16% respectively during the quarter. TMFSL The vehicle finance business of the company grew well and was able to raise its market share in Tata Motors vehicles to 35.6% from 33.3% last year. The company raised its market share by 300 basis points in the CV financing business to 37.8%, while the market share in the car and UV financing segments stood at 31.4% & 39.3% respectively. Tata Technologies Ltd (TTL) TTL recorded a 17.7% growth in turnover to Rs266 crore while the profit increased three-fold to Rs3 crore. The company is witnessing early signs of integration benefits with INCAT and expects better profitability going forward. HVAL and HVTL The fortunes of both these companies are linked to the performance of the CV segment. With the slowdown in the industry, HVAL’s net profits declined by 29% to Rs10 crore while that of HVTL’s declined by 30% to Rs7 crore. Subsidiary performance Turnover Net profits: Q1 Q1 % yoy Q1 Q1 % yoy FY08 FY07 growth FY08 FY07 growth Tata Daewoo CV, 736.0 467.0 57.6 31.0 20.0 55.0 Korea (TDCV) Telco Construction 478.0 329.0 45.3 66.0 31.0 112.9 Equipment Co (Telcon) Tata Technologies 266.0 226.0 17.7 3.0 1.0 200.0 (TTL) HV Transmissions 39.0 37.0 5.4 7.0 10.0 -30.0 (HVTL) HV Axles (HVAL) 40.0 42.0 -4.8 10.0 14.0 -28.6 TML Financial 145.0 - NA 10.0 - NA servieces (TMLFSL) TOTAL 1,704.0 1,101.0 54.8 127.0 76.0 67.1 Capex and new product launches During the quarter, the company launched two new products —Magic and Winger. Magic is the passenger version of Ace and would be pitched mainly against the three wheeler six-seaters in the rural and the semi-urban markets. Winger is a maxi-van, which will be a 9-13-seater vehicle. The company said that these two new products have met with a good initial response, though they have been launched in selected markets only. Further, the company also launched DICOR engine in its entry-level sedan Indigo LS. Going forward, the company has lined up a number of launches including its new world truck Novus,a new range of cars, a new UV platform and a small car. As mentioned by the company on previous occasions, it has drawn up an aggressive capex programme of Rs12,000 for the next four years. Of this, Rs8,000 crore would be spent towards new product development and the balance towards capacity expansions, modernisation and sustaining the capex. As far as funding of the capex is concerned, Rs7,500 crore will be funded through internal accruals, while the remaining shall be funded through a mix of instruments. Cautious outlook on CV industry We continue to take a cautious outlook on the CV industry considering high interest rates and lower availability of finance. We expect the lacklustre trend to continue for another quarter at least. Things are expected to improve somewhat in the third quarter as freight demand may receive a boost with the advent of the festive season. In view of the lower than expected profit margins, we are downgrading our consolidated FY2008 earnings by 10% to Rs54.5 for FY2008 and by 5% to Rs62.9 for FY2008. At the current levels, the stock trades at its FY2009 stand-alone earnings per share by 12x and its consolidated earnings by 5.9x. We maintain our Buy recommendation on the stock with a price target of Rs792. ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: nav_1996
Date Posted: 02/Aug/2007 at 2:51pm
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Market is not looking at huge value in subsidary. Tata Technologies itself is as large as Geometric software.
Also management is conciously trying to push down %of cyclic business by growing other businesses. Unless economy takes a downturn this company will go places. |
Posted By: basant
Date Posted: 02/Aug/2007 at 3:28pm
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Let us look at the mkt cap of geometric and then deduct it from the present mkt cap of Tata Motors. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tyler_durden
Date Posted: 02/Aug/2007 at 3:41pm
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geometric cmp 100..mcap 621 crores..
tata motors cmp 650 mcap 25078 crores...
so if we deduct geometric s mcap we re left with 24457 crores of tata....but what can we infer from it?? ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: basant
Date Posted: 02/Aug/2007 at 3:56pm
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Inferenmce is even if markets were to add the value of the software dividion Tata Motors price would go up by 2.5% or Rs 15/-. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tyler_durden
Date Posted: 02/Aug/2007 at 4:04pm
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I feel that these companies have to spend huge amount of money in R&D...maruti has launched swift, sx4 and started the diesel plant...so it has heavily invested shreholder's wealth...and returns will come in coming years...but then competitors will come up with new models and maruti will have to again spend money on plants and dies...same for tata and ashok leyland etc...But asahi will continue selling glasses to maruti, hyundai and tata...and 80% of their cars will have asahi..so i will always prefer asahi over tata or maruti...and between tata and maruti..maruti is a much better bet...they re the leaders ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: xbox
Date Posted: 03/Aug/2007 at 2:41pm
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http://www.businessworld.in/content/view/2199/2297/1/0/ - http://www.businessworld.in/content/view/2199/2297/1/0/
Mr. TATA has been dreaming quite big. ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: nav_1996
Date Posted: 03/Aug/2007 at 6:42pm
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Citi group has valued subsidaries as Rs 200/share and has a target price of 10029.
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Posted By: CHINKI
Date Posted: 03/Aug/2007 at 6:58pm
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XBOX : That is a good link. It gives in detail about the TATA's dream project and possible upturn/churning that will happen in the 4 wheeler market.
How much TATA make in 1 Lak car is debatable (article says Rs.5,000/-). THE AMOUNT OF PARTS BUSINESS IS RS.7,000 TO RS.9,000 CRORES WHICH IS 1/4TH OF THE TOTAL CURRENT BUSINESS. This should boost up their bottomline as well as lot of vendors who are SSI putting everything they have at stake with RATAN TATA's dream car.
Nawendu, the Citibank target should be 1029??? Pl. check ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: kulman
Date Posted: 03/Aug/2007 at 7:07pm
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While on the subject, read this http://www.business-standard.com/common/storypage_c.php?leftnm=10&bKeyFlag=BO&autono=293206&chkFlg= - one here....
3-month delay for Tatas` dream car
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: kulman
Date Posted: 04/Aug/2007 at 3:17pm
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Tata Motors set to drive in world's largest bus plant Tata Motors is setting up the largest fully-built bus plant in the world, which will make it one of the leading global bus manufacturers. The company is currently scouting for a location in southern Tata Motors has already launched fully-built small passenger vehicles—Magic and Winger—based on the one-tonne Ace platform in June this year.
It also has a 10% stake in Automobile Corporation of ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: CHINKI
Date Posted: 04/Aug/2007 at 5:54pm
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Kulmanji, they were alloted around 300 acres of land near Dharwad and they have not used it for quite some time (I think 10 years back). But somehow they did not start it.
There was furore in the Legislative Assembly few days back when they wanted the land at the same old price. Since this project will be one of the biggest in North Karnataka, ruling party wanted to push it. Lets hope TATA will get through. ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 05/Aug/2007 at 6:40pm
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For auto sales to rise, finance rates must fall by 100-150 bps
PUNE: A slowdown in vehicle sales in India, which has knocked shares of firms like Tata Motors and Maruti Udyog, will persist unless interest rates fall 100-150 basis points, a senior banker said on Friday. “The desire for cars is still strong, but demand for credit has come down,” said N R Narayanan, head of vehicle finance at ICICI Bank, India’s top private bank. FOR MORE DETAILS READ HERE : http://www.dnaindia.com/report.asp?NewsID=1113512%20 - DNAINDIA ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 05/Aug/2007 at 7:37pm
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GOOD ARTICLE ABOUT THE CAR INDUSTRY
http://www.business-standard.com/common/storypage.php?autono=293386&leftnm=1&subLeft=0&chkFlg= - Life In The Fast Lane ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 06/Aug/2007 at 12:14pm
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Tata’s small car likely to cross the border, too
NEW DELHI: Amidst speculation over whether there has been a delay in launching the much-anticipated Rs 1 lakh car, Tata Motors chairman Ratan Tata has indicated that this vehicle may be sold in markets other than India as well. It seems countries such as Malaysia, Indonesia and most markets in Africa could be in the reckoning when it comes to Tata’s dream project. Asserting that his company is committed to launching the new small car “in the first half of 2008”, Tata said in Tata Motors’ latest annual report, “The small car, proposed to be launched at a price of around Rs 1 lakh, will be a never-before-undertaken project, which will hopefully create a new paradigm shift in the aspirational fulfillment of the lower income segment of people in India, Asia and Africa”. But it’s not clear whether Tata wants to set up a greenfield manufacturing plants in these countries or export completely knocked down (CKD) units from India. Already, Tata Motors has a major presence in Africa, with both its passenger and commercial vehicle range. Meanwhile, a company spokesperson said that, for catering to different markets within India, Tata Motors has outlined a two-pronged approach which includes setting up a “mother” plant at Singur (West Bengal) and “satellite” plants in 3-4 different parts of the country. While the mother plant would roll out the finished product, the satellite plants would manufacture part of the product, but get “aggregates” from the mother plant to complete the assembly and sell in nearby markets. The spokesperson, however, did not confirm whether the company has decided to establish satellite plants at its existing manufacturing locations. Tata Motors plans to scale up the Singur plant to a 2.5 lakh vehicle annual capacity by the third year of production. The spokesperson said that almost all vendors needed for the small car project have been signed on but again declined to provide details. But industry sources said that Tatas have picked Lumax for lighting, Sona Koyo and Rane for steering systems, Shriram Pistons for pistons and Rico Auto for clutches. Mico Bosch has also been roped in to provide the diesel engines for the Rs 1 lakh car. SOURCE: http://www.dnaindia.com/report.asp?NewsID=1113765 - dnaindia.com ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 06/Aug/2007 at 3:47pm
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India's Maruti offers discounts to boost car sales
MUMBAI (Reuters) - India's top car maker, Maruti Udyog Ltd., is offering discounts of up to $743 on many of its vehicles to shore up sales, newspaper advertisements at the weekend showed. Maruti, which has nearly half of India's market for mostly small cars, has said it would be hard to match its record domestic sales of 2006/07 because of firm interest rates that have slowed demand for vehicles. Maruti, in which Suzuki Motor Corp. owns 54.2 percent, has said it would limit the impact of high interest rates with dealer incentives and customer discounts. It ran a discount offer in June. The "Smile India Smile" offer, which runs from August 1-15, offers discounts ranging from 7,000-30,000 rupees ($173-$743) on several models, including its best-selling Alto and the Esteem sedan, the advertisements showed. The scheme was being offered countrywide, a spokesman said. Other vehicle makers, including No. 2 car maker Tata Motors Ltd., have scaled back production on the softer demand. A senior banker said on Friday the slowdown would persist until interest rates fell by at least 100-150 basis points. Maruti, which is seeking shareholder approval to change its name to Maruti Suzuki India Ltd., is trying to shift consumers to bigger, more high-margin cars and launched the SX4 sedan in May and the Grand Vitara sport utility in July. Maruti has sold 227,578 units in the four months to end-July, up 19 percent from the same period a year earlier. SOURCE : http://investing.reuters.co.uk/news/articleinvesting.aspx?type=tnBusinessNews&storyID=2007-08-05T055932Z_01_BOM75091_RTRIDST_0_BUSINESS-MARUTI-DISCOUNT-DC.XML - REUTERS ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 06/Aug/2007 at 8:37am
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With the Rs1 lakh car to hit the market shortly, two-wheeler manufacturers are worried though according to an Assocham study, motorcycle sales may not be adversely impacted New Delhi: Disturbing signals have started emerging for two-wheeler manufacturers in metros and semi-urban areas as a large number of consumers are keenly awaiting the budgeted `Choti Kar’ or small car’s arrival to make a dent on the market which is expected to take away about 25% of the market share of two-wheeler manufacturers. This was revealed by a Study undertaken by Assocham on ‘Two-Wheeler Vs. Small Car’.The Chamber’s findings are based on a random survey conducted by its research team in which 3000 potential customers participated in metros and semi-urban segments. However, in majority of cases it was observed that these would prefer to wait for the small car to roll down on roads than to buy new two-wheeler as their little cost differential Findings * In semi-urban segments, consumers are more inclined to buy budgeted small cars to satisfy their quest for prestige, metro consumers on the other hand feel that small cars will not only serve their needs better and tend to their requirements more efficiently as compared to two-wheelers but will also provide greater `safety’. * 90% respondents in the semi-urban segment categorically stated that they would rather manage their movements with what they currently own rather than invest in buying a two-wheeler. They felt that since there is still a year to go before the small car is launched, it would be judicious to wait and go in for the car when it comes. * For owners of two-wheelers making the transition to being car owners, significant reasons were greater comfort and prestige. * Young people who were earlier wanting their first vehicle to be a two wheeler would now be able to switch their aspirations to buying a four wheeler instead. Current status * Two-wheeler market in India has already shrunk to about 17.50 lakh units by June 07 as compared to little over 18 lakh units about a year ago which will further witness a decline since consumers henceforth would have many options in the four-wheeler segment with little price difference. * Declining second-hand car prices, particularly in large cities also poses a threat to two wheeler sales. The small car segment offers a variety of vehicles to choose from. and with this re-sale, prices as low as Rs.40,000 for a five-year old Maruti 800, options seem to be available aplenty for vehicle owners. * Most scooters and mopeds launched over the past year have met with poor response from buyers and this has further strengthened the claims of pessimists. Experts in the field continue to be sceptical of the higher engine-capacity motorcycles that have entered the cost-sensitive Indian market. Relief for two-wheelers The survey pointed out that in the past two and half years, slew of scooter and motorcycle models were launched. However, the response from buyers was by far betterin the case of motor cycles. The same however could not be said about scooters. Also, since motor cycles are priced higher and often prove to be risk prone, this provides a psychological edge for car buyers and that is one more reason that the small car sales would be far more attractive and higher in number. SOURCE: http://www.livemint.com/2007/08/06153314/Small-cars-to-outsell-twowhee.html - LIVEMINT ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 09/Aug/2007 at 4:26pm
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Tata Motors may get into a competitive auction process to get majority control in Jaguar and Land Rover, which have been put on the block by their owner, Ford Motor. Sources said Ford was likely to shortlist two preferred bidders next month and go for a competitive auction to shorten an otherwise long-drawn bidding process. In such a case, Tata Motors will be the second company from the Tata stable to participate in an auction for an overseas acquisition. Tata Steel, the steel company of the Tata group, acquired Anglo-Dutch steel company Corus by outbidding its rival suitor Brazilian firm CSN, in a high voltage auction. Apart from Tata Motors, a handful of private equity players, including TPG, Cerberus, One Equity Partners and Ripplewood, are in the race for acquisition of the two luxury brands. They are in various processes of due diligence. However, Ford so far has not disclosed the identity of the companies that have expressed interest in Jaguar and Land Rover by the stipulated date of July 19. It said it was impressed by the strength and quality of the interested parties. Sources said the valuation of the two brands said to be $2-3 billion might be affected by the uncertainty over how the European Union would apply new regulations on carbon-dioxide emissions. The new norms are scheduled to take effect in 2012. Ford needs money to fund its restructuring in North America. Ford may retain a minority stake in the units of Jaguar and Land Rover to ensure security of engines and parts supplies. The company may also provide engineering support to the successful acquirer of these brands. The bidders, particularly the private equity players, want Ford to keep the stake in the range of 30 to 50 per cent in the two units so that the supply of parts is guaranteed. Ford's production links with Land Rover and Jaguar border on the inseparable. Ford retained a 15 per cent stake in Aston Martin when it was sold several months ago. It had bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.73 billion in 2000. SOURCE: http://www.business-standard.com/common/storypage.php?autono=293907&leftnm=1&subLeft=0&chkFlg= - BUSINESS-STANDARD ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 09/Aug/2007 at 4:44pm
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Strike, what strike?
At Singur, Citu sweats for ‘public utility’ Singur, Aug. 8: A lesson for Citu — from Citu. While millions of workers loyal to the Left union laid down the tools of their trade today, a few hundred fellow comrades struck a blow for work in a small Bengal village. The 350-odd workers, all affiliated to the CPM labour arm, defied their union’s call and joined other construction labourers to ensure that work at the Tata Motors plant in Singur did not suffer because of the nation-wide strike in the unorganised sector. “The Tata Motors project is a public utility and of national importance. That is why we decided to ask workers engaged in the project to report for duty today,” said Dibakar Das, the convener of the Citu-affiliated Paschimbanga Nirman Karmi Union (Singur Tata project). “We felt that construction here should not be affected by today’s strike.” Citu had called the strike to press for jobs and social security cover for workers in the unorganised sector. At the Tata site in Singur, about 45km from Calcutta, work went on in full swing. It was business as usual in the engine, paint and welding shops of the upcoming plant while construction of iron beams went ahead just as any other day. The decision to not join the strike was taken last evening by the local Citu unit. When told that the move was being seen as an embarrassment for the state Citu leadership, Das said the project was a “big challenge” for the state government. “We had no intention of embarrassing the Citu leadership. We believe completion of work at the site is a matter of prestige for us, given the controversy Opposition parties have created,” he added. Asked about the local unit’s decision, state Citu secretary Kali Ghosh said: “We never talked about keeping the Tata project outside the purview of today’s strike. It may have been a decision taken at the district or local level. We are trying to find out the details.” Local CPM leader Srikanta Chatterjee justified the move not to stay away as work at the project has suffered because of heavy rain. “We thought there should be no further disruption and took the decision to ask workers to report for duty last night. We also did not prevent anybody from working,” he said. Some workers were delighted. “Nobody stopped us,” said Dinabandhu Das, a daily labourer. “We all worked spontaneously.” Citu loyalist Sheikh Mansoor said it was more of a diktat from the local unit. “I had thought of skipping work. But our leaders told me I will have to report for duty.” Apparently, as a face-saver, workers loyal to the Citu-backed Karmi Union took out a rally on the Durgapur Expressway after work was over for the day at the Tata Motors site. SOURCE : http://www.telegraphindia.com/1070809/asp/frontpage/story_8170299.asp - THE TELEGRAPH-CALCUTTA ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 09/Aug/2007 at 11:33am
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Tata Motors want Air Cars to hit India by 2008
It is expected that about 6000 Air Cars will be cruising the streets of India by 2008. Tata Motors, India’s biggest automaker is all set for the mass production of MDI Air Car, ‘the world’s first air-powered vehicle’ in India. Tata has signed an agreement with Moteur Development International of France to develop a car that runs on compressed air. All car manufacturers in India will definitely give this phenomenon a good look. The Air Car will be very economical to run and almost completely pollution free. Air Car might turn out to be one of the biggest technological break-throughs in this age. It was developed by Guy Negre a former Formula One engineer. Modeled as MiniCATs and CityCATs, the engines will be available with 2, 4, and 6 cylinders. These engines will be able to use gasoline, gas oil, bio-diesel, gas, liquidized gas, ecological fuel, alcohol, and so on. This vehicle is equipped with a small computer screen instead of normal speed gauges. This system facilitates a GSM telephone system, a GPS satellite tracking system, programs for delivery people, emergency systems, internet connections, voice recognition, map presentation, traffic information, etc. MiniCAT will come with a seating capacity of three and minimal boot space. While the CityCAT will be more spacious with six seats which can be faced on different directions. The MiniCAT could cost around Rs 3,50,000 in India. The cost of a refill would be about Rs 90. SOURCE: http://blog.carazoo.com/2007/08/tata-motors-want-air-cars-to-hit-india.html - CARAZOO ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 13/Aug/2007 at 11:55am
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Tata’s Ace unit drives past licence hurdle
Pantnagar plant get temporary clearance; starts commercial production with a capacity of 225,000 cars a year New Delhi: Tata Motors Ltd, India’s largest truck maker, said it had received the go-ahead from the Uttarakhand government to start commercial production at its Pantnagar factory. This is a temporary clearance subject to a final ruling by the apex court on a issue concerning the state’s pollution control board. Mint had reported on 7 July that the company potentially faced a seven-month delay in starting operations since the Uttarakhand government had stopped issuing environmental clearance to factories after a Supreme Court order. “Commercial production of the Ace has started on 11 August,” said Debasis Ray, spokesperson for Tata Motors. The Pantnagar factory, which has the capacity to produce 225,000 units a year, will make both the Ace cargo carrier and its passenger vehicle version, Magic, said Ray. Sales of small trucks such as the Ace have grown more than 60% over the past two years as transporters move towards a hub-and-spoke model where light vehicles ferry goods within a city and heavy ones between cities. The court case behind the problem was a complaint by a former member secretary of the state pollution control board, who told the court that the board was flouting norms after he was prematurely removed from his role. The Supreme Court then put a bar on issuing no-objection certificates (NOCs). However, after hearing a submission filed by Uttarakhand chief secretary S.K. Das detailing the loss to industry because of the non-issuance of NOCs, the Supreme Court vacated the stay on 27 July, subject to its final ruling on the case scheduled for 1 October. SOURCE: http://www.livemint.com/2007/08/14011342/Tata8217s-Ace-unit-drives-p.html - LIVEMINT ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 17/Aug/2007 at 7:29pm
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The new engines are part of the company’s strategy to strengthen its hold in the commercial vehicles market, witnessing increased competition existing players and new arrivals Pune: The country’s largest commercial vehicle manufacturer, Tata Motors Ltd, which has global ambitions for its business, is getting ready with a new range of light commercial vehicles that will be targeted at the overseas market as well as the domestic buyer. The company is simultaneously developing two new engines: 3.5 and 5 litres, to power what it is saying will be its light commercial vehicle (LCV) line-up of the future. A person familiar with the development said that Tata Motors is already developing the first prototype of the new LCV range, designed by Austrian design house AVL. This person, who did not want to be named, said the new range of vehicles are being designed to meet all existing European emission norms and expected to help Tata Motors expand into new markets. In India, Tata Motors plans to offer the 3.5- and 5-litre engines on its existing vehicles: the 407, 607 and the 706, among others, making them more fuel-efficient and powerful. “At any point of time, Tata Motors works on several innovations on its product portfolio, in the light of long-term needs of its customers, both on a domestic and global scale,” said a Tata Motors’ spokesperson. “However, we cannot share any specific information on our future plans for the sake of confidentiality.” The new engines are part of the company’s strategy to strengthen its hold in the commercial vehicles market, which is witnessing increased competition from both existing players and a host of new arrivals. The company introduced a new 2.2l dicor (direct injection common rail) engine on its Safari model recently and is planning to introduce it in a few other brands. “The company plans to start commercial production of the new range by end-2008,” said this person adding that it plans to produce between 70,000 and 80,000 vehicles in the first year of production. The company’s committee of directors, at its meeting in June, agreed in principle to raise additional long-term funds worth at least $450 million (nearly Rs1,850 crore) through securities in the overseas markets in order to meet capital and product development costs for both commercial vehicles and car units. The firm is stepping up production of its 2.2l engine, which, industry watchers say, is getting a good response in the market. It will make an estimated 2,000 units of the engine in August. SOURCE: http://www.livemint.com/2007/08/17002815/TataMotors-readying-new-line.html - LIVEMINT ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 17/Aug/2007 at 11:19pm
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Tatas to drive in stylish truck
NEW DELHI: Now, it’s the turn of lifestyle trucks. After Mahindra & Mahindra’s Getaway, it’s Tata Motors which will shortly launch its second-generation pick-up truck, Tata TL, in the Indian market. As part of global plan, the re-designed Tata TL will be powered by newly-developed 2.2-litre common rail direct injection engine and cater to the growing demand for stylish mini-trucks. The rising economy and the emergence of smaller cities are propelling the demand for mini-trucks. M&M has already launched its lifestyle truck, Getaway. The truck is positioned as a premium and exclusive pick-up and has multi-variants offering. Similarly, the Tata TL would have a double and single-cabin options coming with a two and zippy four-wheel drive while power steering will be a standard fitment. Tata Motors spokesperson refused to elaborate on Tata TL pick-ups, but said that this global truck is being customised to meet the stringent Indian driving conditions. “We cannot disclose the launch and product details, but the vehicle is being tailored for the Indian market,” the spokesperson said. Besides the truck, a new passenger variant of the ageing Sumo utility vehicles is also expected to be developed on the same TL platform. Auto analyst says these products command a good market like their SUV counterparts as they are positioned in the niche segment. “A good demand comes from semi-urban and rural markets, where higher disposal incomes are creating a strong customers base for these lifestyle trucks. The comfort of a sedan and utility of a truck make them unique for entrepreneurs and big farmers,” said KPMG national industry director Yezdi Nagporewalla. Tata Motors is planning a global footprint with the TL truck. The company has formed a joint-venture with Thailand’s Thonburi to manufacture and sell pick-ups in Thailand, the second largest pick-up market in the world, and in other regional markets. Besides, the same truck would also be manufactured and sold under the Fiat’s nameplate in Cordoba with the investment of $80 million and initial production of 20,000 units per annum. SOURCE: http://economictimes.indiatimes.com/News/News_By_Industry/Tatas_to_drive_in_stylish_truck/articleshow/2282039.cms - ET ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 17/Aug/2007 at 11:24pm
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Tata, M&M to meet Jaguar, Rover brass
NEW DELHI: Ford has invited its shortlisted bidders to meet the managements of the two firms on the block—Jaguar and Land Rover. The process will be completed in the next three weeks. Industry insiders say both Tata Motors and M&M have been contacted for the management meetings. They will be followed by detailed due diligence. One of the reasons why Land Rover in particular is considered an automotive cherry is because of its north American footprint. But without a smaller car in the line-up, its gas-guzzlers may find it difficult to avoid CAFE penalties, said a Delhi-based MNC consultant. Four years ago, the US department of transportation’s National Highway Traffic Safety Administration increased the CAFE standards for light trucks (read pick-ups, vans, SUVs) by 1.5 miles per gallon (mpg) over the next three years. Under the new rule, the standard increased to 21.0 mpg for model year 2005, 21.6 mpg for 2006, and 22.2 mpg for 2007. Companies that don’t conform pay penalties but many offset these against CAFE credits from fuel-efficient smaller cars. Since model year 1990, the passenger car standard has remained unchanged at 27.5 mpg. Consultants say the CAFE considerations may impact valuations of the otherwise profitable and attractive Land Rover business. Further, analysts say that the deal may have a built-in clause that will make it impossible for the buyer to retrench employees or restructure operations at the UK plants for a period of time. Ford is seeking assurances that whoever buys the two firms will keep all the UK factories — Coventry, Birmingham, Liverpool for Jaguar and West Midlands for Land Rover —open for at least five years to safeguard UK jobs. Between them, the two British marquees have 19,000 people on the rolls. Meanwhile, after Jaques Nasser, another former Ford executive has thrown his hat into the ring using a private equity role. Former Ford president Nick Scheele, who retired from the company two years ago, will advise Ripplewood Holdings, one of the short-listed bidders for Jaguar-Land Rover. Nasser is leading private equity player One Equity in the Jaguar-Land Rover deal. International media is already speculating about the battle royale between these two high-profile former Ford executives. SOURCE: http://economictimes.indiatimes.com/News/News_By_Industry/Auto/Tata_MM_to_meet_Jaguar_Rover_brass/articleshow/2279110.cms - ET ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 21/Aug/2007 at 8:49pm
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Tatas eye Ace for Thailand
The auto major will take key vendors along; to start production of Xenon pick-up model as well by January India’s largest commercial vehicle maker, Tata Motors Ltd, is firming up plans to produce its Xenon pick-up and its popular one-tonne Ace truck model in Thailand, the world’s fastest growing market for pick-ups. The company also plans to take a few of its key vendors along for the Thailand project, said senior company executives who did not want to be identified because they are not authorized to talk to the media. “Plans are to start production of the Xenon and Ace models in Thailand by January 2008,” a person close to the developments told Mint. Tata Motors has a joint venture with Thonburi Automotive Assembly Plant Co. in Thailand to manufacture, assemble and market pick-up trucks. India signed a free trade agreement with Thailand in 2004 and certain auto components, such as engine parts, have lower import duty. This is set to become lower still and in some cases will fall to zero. With Thailand able to make some parts cheaper than India, local vehicle makers may look to source more parts from the South-East Asian country. This has also prompted Indian auto companies to explore building factories in Thailand. Tata Motors spokesperson Debasis Ray declined to comment, citing the Parsi new year holiday at the company. Thailand is the world’s second largest pick-up truck market, after the US, and the joint venture could help Tata Motors get access to the lucrative market as well as other markets in the region. The joint venture, in which Tata Motors will hold a 70% stake, will manufacture vehicles at Thonburi’s facility. Thailand has already overtaken the US as the world’s biggest maker of light pick-up trucks and now produces 900,000 one-tonne pick-ups every year, which is estimated to be approximately three-fourths of the total global production of such vehicles. Tata Motors’ initial plans are to produce 20,000 units each of the Xenon and Ace models in the first year, but one of the executives said the company is ready to ramp up numbers depending on the market response. The Indian commercial vehicle market is currently seeing a slowdown brought on by higher interest rates for the financing of vehicles. For Tata Motors, the Thailand venture will open up another avenue to sell its popular Ace model, which will see a slew of competitors in the coming year starting with its Pune rival Force Motors Ltd’s light truck. With sales of the Ace crossing the 100,000 units mark in just 22 months of launch, a host of other automobile companies in India, including Mahindra & Mahindra Ltd and two-wheeler maker Bajaj Auto Ltd, have announced plans to launch vehicles in this category. Tata’s Indian sales of commercial vehicles in July were 20,705 units, a decline of 3.8% over the 21,534 vehicles sold in July last year. Medium and heavy commercial vehicle sales stood at 10,367 units, a decline of 14.6% over July 2006, while light commercial vehicle sales were 10,338, a growth of 10% over July 2006. The firm’s sales from exports stood at 4,382 vehicles in July, down 17% from 5,284 vehicles in July 2006. The cumulative sales from exports in the current period at 18,204 have recorded a marginal decline of 1% over the previous year. Meanwhile, some vendors maintain that once the India-Thailand free trade agreement comes into effect, they can turn around and supply low-cost supplies to original equipment manufacturers in India. Indian auto component vendors have made huge investments in expanding their capacities, portfolio and upgrading technology over the last couple of years to cater to the needs of global auto equipment suppliers who are setting up shop here. In addition to shopping for components for their own needs in India, most of these suppliers are also tapping their vendor base for purchasing components for their global operations. SOURCE: http://www.livemint.com/2007/08/21000225/Tatas-eye-Ace-for-Thailand.html - LIVEMINT ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 22/Aug/2007 at 4:51pm
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Tata Motors may launch MDI compressed air car production next year
The Rs 1-lakh (£1,250) car is not the only affordable car technology that Tata Motors will launch next year, believes India’s Economic Times, suggesting today that Tata has plans to start building cars whose MDI compressed air motor technology it acquired a licence for at the start of this year, as soon as 2008. The paper says the air cars are expected to be in the same price band as the current Indica supermini range (approximately around Rs 3.50 lakh) and will probably mirror the variant developed by inventor Guy Nègre’s MDI company, called MiniCAT. The Economic Times suggests their debut may coincide with the launch of the Rs 1-lakh car, next year, but drew no comment from a Tata Motors spokesperson, beyond confirmation that the technology required ‘a couple of years’ work. In February this year, Tata Motors signed an agreement with Moteur Development International (MDI) to source technology to develop engines powered by compressed air. These cars were developed by Guy Nègre, the French former F1 engineer, and the engines are gasoline, fuel gas, bio-diesel, liquid gas, ecological fuel, alcohol and ethanol blend compatible. Licences to manufacture and distribute MDI-designed cars have been sold to unnamed companies in the UK, Belgium, Portugal, Spain, and the U.S., but to date only Tata Motors has indicated that it expects to launch commercial production within a period of a few years. MDI has developed five models altogether. Its latest OneCAT prototype for developing markets is presented in three- and five-seat versions, costing an estimated €3,500 and €5,300 respectively, and emitting –from their compressed air recharges – only 30-35 g/km of CO2. SOURCE: http://www.autoindustry.co.uk/news/21-08-07_1 - AUTOINDUSTRY ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 23/Aug/2007 at 12:53pm
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Toyota Motor to launch small car in India
LONDON, August 22 (newratings.com) - Toyota Motor Corporation Wednesday announced that it intends to launch a small car within two years in India. The Chairman of the largest automaker in the world said that the company is looking at several countries, but would probably choose India as the first site. General Motors has already introduced a small car in India, while rivals Honda Motor Co and Nissan Motor Co are setting up plants in India. Indian conglomerate Tata Motors is also designing a small car. Toyota Motor said that the first plant was likely to be set up in its existing facility in Bangalore. SOURCE: http://www.newratings.com/analyst_news/article_1597943.html - NEWRATINGS.COM ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: basant
Date Posted: 23/Aug/2007 at 2:09pm
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With so many cars I like US121's conmcept of Amarraja Bateries. ALso the battery space is a a duopoly and has a lower replacement cycle unlike a car but the problem lies with their raw material - lead!!! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: CHINKI
Date Posted: 23/Aug/2007 at 2:18pm
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With the present downtrend, Rs.1L car offering in line, expanding in other countries and possible acquisition of Jaguar & Rolver models, doen't TATA MOTORS look attractive??
I read somewhere where they had valued their subsidiaries at Rs.205/- per share. So TATA MOTORs is available at Rs.400/-. Isn't it a good bargain??? ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 23/Aug/2007 at 2:59pm
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People familiar with the matter said the company is firming up plans to roll out the new product from its Uttarakhand plant from April Passenger and commercial vehicle manufacturer Tata Motors Ltd looks set to leverage the success of its segment-creating Ace model by using the platform to launch a new microbus. The company is, however, planning to add more power to the microbus by loading the Ace with the more powerful 1.4-litre engine of its passenger car Indica, instead of the current 700cc, four-stroke diesel engine. The new vehicle is likely to be a seven-seater. People familiar with the matter said the company is firming up plans to roll out the new product from its Uttarakhand plant from April. Tata Motors has two other passenger vehicles, the Magic, a soft-top, seven-seater passenger variant of the Ace and the Winger, a 9-13-seater positioned as a maxi-van capable of intra and inter-city commuting. “At any point of time, Tata Motors is working on several innovations on its product portfolio in the light of long-term needs of its customers, both on a domestic and global scale,” said a company spokesperson. “However, as per our policy, we cannot share any specific information on our future plans,” he added. With Indian cities dealing with traffic snarls and rising problems with commuting, governments are looking at alternatives to ageing and packed fleets of public transport buses. Among the solutions that are being implemented are the bus rapid transit system, light rail transit system and a metro system, which is both expensive and time-consuming to build. Some town planners and local municipal corporations look at smaller transport vehicles as one alternative to private cars. Tata Motors executive director P.M. Telang had recently said that while “the Magic and Winger are our latest initiatives... more will follow.” “The Ace platform has proved to be the turning point in the company’s recent history and it intends to maximize the very versatile platform,” said this person familiar with Tata’s microbus plans. The company will likely pitch the microbus against Maruti Udyog Ltd’s Omni, which is currently witnessing a major rebound in sales after the company launched a model that runs on liquefied petroleum gas. The Omni sells for between Rs1,90,000 and Rs2,30,000 for a five-eight-seater model. The offering from Maruti Udyog has sold an estimated 27,000 units in the first four months since April, up from 23,000 units in the year-ago period. In 2006-07, it sold an estimated 64,000 units and “it is the only (Maruti) vehicle, after the Maruti 800, that has sold one million units since its launch in 1984,” said a company spokesperson. Separately, Tata Motors is stepping up production of the Ace out of its 225,000 units a year factory in Uttarakhand. A person familiar with the plan said the company will increase production to 400 vehicles a day by October and eventually to 1,000 units a day by May. Tata Motors sells at least 6,000 units each month, according to the same person. The Ace was launched in 2005 and sold more than a 100,000 units within 22 months of its launch. SOURCE: http://www.livemint.com/2007/08/23014341/Tata-Motors-sees-an-Ace-in-new.html - LIVE MINT ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: basant
Date Posted: 23/Aug/2007 at 3:04pm
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Though I do not like investing in manufacturing companies Tata Motors does appear attractive. It is another way to play the consumption and demographic story. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tyler_durden
Date Posted: 23/Aug/2007 at 3:09pm
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sir peter lynch too invested in automobile companies and made a fortune..subaru was one of his fav....for a long long time auto stocks are under tremendous pressure...and are consolidating...one good news can trigger the up move... but then rising crude, rising raw mat prices are big concern....and chinki ji acquiring jaguar and land rover can add problem also...other positives that u have mentioned i agree with them.....
indian car makers want to double the car penetration by 2010 so tata will benefit in a small manner by this....and given the infrastructure boom....commercial vehicle sales ll bring a great money for tatas .... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: CHINKI
Date Posted: 23/Aug/2007 at 3:38pm
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If their 1Lac car becomes successful like their ACE model, imagine what will happen:
I am just copying two paragraphs which were posted at different pages in the same thread: 1. http://www.theequitydesk.com/forum/forum_posts.asp?TID=916&PN=6 - LIFE IN THE FAST LANE Today, the entry or the A segment comprises the Maruti 800 and the Alto and it’s share of the market is less than ten per cent. If priced at Rs one lakh, the Tata car, would be positioned at the lower end of this space. Says Majeed, “Even if a fourth of over eight million two-wheeler owners buy the car, it would mean sales of 2 million cars.” That’s twice the size of the industry. Adds Yezdi Nagporewalla, head, auto practice, KPMG, “In terms of the customers being catered for, it’s an excellent concept and even if the product is reasonably good, we could see big volumes.” 2. http://www.theequitydesk.com/forum/forum_posts.asp?TID=916&PN=5 - Small Car, Big Questions The Cost-Quality Tussle While embarking on the project, Tata Motors brought in a convinced group of suppliers who were set near-impossible price targets. Said one leading supplier, “Our usual payback period is 3-4 years for a component made for a new car. In case of the Rs 1-lakh car, it’s going to be five years.” Price negotiation with suppliers usually started at 50 per cent of what they quoted. Some managed to push it up to 80-85 per cent. Those like Sona Steering managed to get nearly what they had quoted. “We have had a fair deal and got the price we had bid for,” says Surinder Kapur, chairman of Sona Group. But what keeps Kapur, like many of his peers involved in the project, is the promise of unprecedented volumes of between 250,000 and 1 million units per annum, numbers that are huge by the standards of the domestic automobile industry. “This is the first time we would be seeing such numbers,” says Arvind Walia, CEO of Delhi-based Gabriel India, which is supplying suspension parts. If Tata’s car does indeed sell 1 million units, its parts business alone could be worth between Rs 7,000 cr and Rs 9,000 cr, says a supplier. That’s almost a fourth of the total domestic component business in India today. ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: basant
Date Posted: 23/Aug/2007 at 3:58pm
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Makes a lot of sense and at the present CMP the market seems in no mood to discount that small car and that could be the opportunity. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: smartcat
Date Posted: 23/Aug/2007 at 4:05pm
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Overdive magazine (published by Tata-McGraw) carried an artiste's impression of the 1 Lac car sometime back. The car's design looks pretty decent - it looks a bit like Maruti Zen Estilo.
Artiste's impressions by magazines are generally accurate because they are made with the help of persons (insiders) who have actually seen the car.
Tata will also launch a second generation Indica/Indigo platform next year.
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Posted By: CHINKI
Date Posted: 23/Aug/2007 at 4:10pm
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The way in which TATA MOTORS is introducing new models, expanding into new countries and acquiring companies outside India, Mr. Ratan Tata is derisking the TATA MOTORS business model from the conditions in India.
Finally this is what he is aiming for all the TATA companies. Economy or GDP is growing in India or not, TATA companies should grow. That is a very good business move & acumen.  ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: tyler_durden
Date Posted: 23/Aug/2007 at 4:23pm
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1 lac rupee car market has been judged at 1 million cars a year....
but sir what will be the margins???
1. ratan tata has said that it wont be priced at 1 lac...somewhere i read price going upto 1.25-1.35 lacs for base model.....the real business can be spare parts business and servicing....
2. in petrol engine...tata has been badly beaten...tata indica zeta...at 2.79 lacs with ac, power steering and a lot more space than alto and m800...alto costs a bit more than zeta..wat happened?? zeta is a failure....
in petrol people still trust suzuki....
if 1 lac car clicks it can be a good sign...but how much it will add to the profits??? for first year capacity of plant is 1.5 - 2 lacs...m800 gives maruti around 2500 or 1500 rupee per car...and in one article it was mentioned that after dealer margin etc tata would be left with 100-250 per car....so u can imagine the net impact.....
and wat if this model fails??? mkt will beat the share of tata motors....because huge costs re involved in setting up the plant
jaguar and land rover were not too profitable for ford...can tata turn em around successfully...this in a situation where jaguar and land rover competes with lexus...chryslar, pajero, parado....
to me auto ancillary share seems more profitable...asahi will sell 4-8 glasses per car...lumax will sell lamps for sure..... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: basant
Date Posted: 23/Aug/2007 at 5:24pm
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to me auto ancillary share seems more profitable...asahi will sell 4-8 glasses per car...lumax will sell lamps for sure
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WHile I am not debating for Tata Motors the big money is made in the original thing. If Bluestar went up 10 times Pantaloon went up 60 times. Ancilliaries are always kind of value plays which keep compounding over time. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tyler_durden
Date Posted: 23/Aug/2007 at 6:21pm
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you re right sir but aint we comparing 2 different industries here??? it will vary from industry to industry...
pantaloons sell 1000s of products and their sum adds up to bottom line but in case of tata or maruti its the cars which is the main product.... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: basant
Date Posted: 23/Aug/2007 at 6:37pm
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Normally the pick axe theme makes less money in any industry. But they come with lower risk as well. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: CHINKI
Date Posted: 23/Aug/2007 at 6:37pm
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Tyler,
I am fully agree with you on most of your comments. Infact till Indica (even the initial model had some suspension problems)and Ace came, other models were not so successful. I remember one of our dealer who was having TATA SAFARI was mentioning to me that the spare parts were costly and not available also. This is quite some time back (around 12 to 13 yrs. back) and Mr. Ratan Tata would have streamlined subsequently. As per their plan, for they are planning hub centres at prominent places keeping demand in mind. The knockdown kits will reach these places and the dealers will assemble the vehicle at their respective places. May be this is one of the way of cost cutting!!. Dealer would have agreed for less margin as they would be assembling themselves and since no. of vehicle are more, they would make money subsequently in servicing of the vehicles. They have squeezed their vendors to get the best price from them also. Most of them invested near to TATA's plant at Singur. Everyone has agreed for that type of pricing, keeping the volume in mind. Keeping these things in view, they may make around Rs.2,000/- per car which works out to 2%. Add spare parts business, insurance for the vehilces, royalty for recommending particular brand of oil and so on. Now the big question is will the car become hit??? TATAs doesnot have good reputation but off late few of their new models have become successful. So we will have to wait & watch. As Basanth had mentioned, in its present price of Rs.620/- or earlier high price of Rs.900/-, this is not accounted. If it becomes hit, price can zoom?? If it is not, at the most it may be languishing at Rs. 700/- or Rs.800/-. Now the next question, is it worth taking this risk??? ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: tyler_durden
Date Posted: 23/Aug/2007 at 7:24pm
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car assembly lines are huge...i dont think dealers can afford that....and if they can then they will ask for extra margin not lesser margin...and in any case dealers make money only by servicing the cars not by selling them....for servicing 1 accidental car they cover selling 10 cars....
be it hyundai, maruti or tata everyone squeezes vendors for bulk models...vendors do anything to get parts of alto or wagon r because they know volumes will make up the lower margin...so i dont agree that tata have squeezed em so much that they can hold good margins themselves...
usually margins on low cost or segment A cars are sround 1-1.5% ...M800 plant for maruti has breaken even and then they have less than 1.5% margin...so tata getting 2% sounds tough to me..
which of the new tata models have been hit??
1. tata indica zeta - big flop
2. tata indigo marina - flop
3. tata safari(new version) - though value for money - beaten by scorpio
Tatas have ventured into Car foray but the truth is that they re best in making trucks and buses....if they wud have consolidated the same business...had they bought something in same field they wud have strengthened...but here they seems to go on a diworsefication spree......
now we can only wait and watch for the final outcome but by then stock will either be par 1000 or might linger here....tough call
 lastly is it worth taking the risk??
1. crude is rising...
2. 1 lac car story -- wat if model fails??(Maruti is in full swing to reduce m800 prices ..to the tune of 1.5 lacs)..if u re buying your first car which one will u buy??? a trusted one with lower maintenance or a new untried concept?? even the news of maruti coming with low price car will have a bad impact on tata stock..
3.lexus and chryslar have taken away most of jaguar's share...tata for sure (150% sure)...cant match lexus or chryslar ...Lexus has dented GMs big cars so i dont expect tata to dent lexus or chryslar or aston martin with jaguar....
and what would be the returns if all these factors are taken care off??
1. we cant stop crude from risin...
2. say 1 lac car is a success ... it can add good money in next 2-3 years(till 2008 it wont come to market an post 2008 capacity expansion will happen and real impact might come by 2010 when volumes will be huge...)
3. TATA turn around jaguar and land rover....will take sometime to initially recover the cost before prfoits will come....
i think here risk is too high and %age returns quiet low....why not to switch to some other industry itself which is on verge of becoming big....
1. in manufacturing era we had GM, FORD etc and all made big money..
2. Then we had services era .. infy,tcs made fortunes
3. Now i think its media, telecom, infrastructure and HEALTH SERVICES + ALTERNATE ENERGY SOURCES ERA
Really sorry for playing devil s advocate here but i think ek stock ko ache se thok baja lena chaiye before we TEDIES go ahead and buy it  ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: smartcat
Date Posted: 23/Aug/2007 at 7:38pm
FYI - Chrysler is not a brand to be compared with Jaguar. Chrysler has mass market models (like that of Ford & GM), is loss making and has negligible sales in Europe (Jaguar's main market).
However, if Tata acquires LR & Jaguar, my heart will swell with pride but my brain will not let me invest in Tata Motors.
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Posted By: tyler_durden
Date Posted: 23/Aug/2007 at 7:46pm
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chrysler is a us 60billion$ (revenues)(maybe more than that)company...ford is 160 billion us $ ..and jaguar is just a part of ford...so i dont need to say whether chrysler is a brand or not....
According to the Daily Telegraph, analysts have suggested that Jaguar and Land Rover sale may fetch at least $1.5 billion (£735 million) to Ford.
so chrysler is way way way ahead of jaguar...and europe WAS jaguar's market...it has been dented now...FYI ford bought jaguar for 2.5bn $ in 1989....so the brand is gone now.... else no one kills a cow which can be milked
in first place if jaguar wud have been so great would have ford sold it off???
lastly your lines are exactly summarising my sentiments
"my heart will swell with pride but my brain will not let me invest in Tata Motors." ....great words to summarise my thoughts tooo..... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: prosperity
Date Posted: 23/Aug/2007 at 10:34pm
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Does anyone know the PE of Tata Motors ?
It has huge valuations for numerous subsidiaries it has ...
The PE was 13 some 2 years back when the share was at 550-600 !!
One of the lowest PEs that any auto company has !!
Many were bearish for Tisco after it acquired Corus ...
I held on to it and enjoyed the ride !
You just dont understimate Tata Companies potential to turnaround companies .... acquistions are marriages after which kismat of the married people are turned around if one of the spouse is a Tata company ...
Did anyone benefited from Voltas turnaround - Its a Tata Company ...
Somehow they could not make it big with trent (Biyani made a better bigger venture)
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Posted By: tyler_durden
Date Posted: 23/Aug/2007 at 10:44pm
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corus was in the business in which tisco is great....i loved it when tata bought daewoo s truck division...they re master in that field...but cars has not been tatas cup of tea....i hope the company does well...i expressed my views and i feel that risk reward in this case is not too good ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: prosperity
Date Posted: 23/Aug/2007 at 10:49pm
I agree. But the way i want to look at is .... Inorganic growth can make Tata's understand how to make cars better !
Same reason why commoditiescontrol was acquired by TV18 Group, long back !
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Posted By: smartcat
Date Posted: 23/Aug/2007 at 10:56pm
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Incidentally, Land Rover has been berated by some UK car magazines for poor reliability and quality (compared to Mercedes/BMW/Audi). Jaguar too had quality problems, but Ford fixed it.
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Posted By: tyler_durden
Date Posted: 23/Aug/2007 at 11:08pm
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you re right smart cat about ford fixing the problem for those two companies...when ford acquired em reliability was added to those 2 brands...
i am not sure what tata will do with em....but i read an article today...and that sure is positive for tata...europe is going diesel way...50% of car market is gonna be diesel...now here tata can make a killing if they can further improve their diesel indica.... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: CHINKI
Date Posted: 23/Aug/2007 at 11:51pm
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Good points Tylerji and Well Said by Smartcat regarding summarising the thoughts.
I have following points to make: 1) The CMP of the stock doesnot include the acquisition news and the success/failure of 1 Lac car. Irrespective of the outcome of the above two events, nothing much will happen to the price except upward/downward movements of the price during initial period. 2)Increase in crude price will affect all the players, hence nothing particular to Tata Motors. But it will also affect all other industries and economy in general. So the buying the power of the people will come down and hence may go for cheaper cars. 3) We are talking volume of quarter to 1 million vehicles per year. Hence they can ask vendors for better pricing. I think Maruti 800 (even at the time of no competition) took some years to reach magical figure of 1 million. 4) I have also seen a car assembly at Ford Motors, Chennai. I fully agree with the space requried. But as mentioned in one of the article available on this thread, they are going to have Knock Down Assembling Facilities at the Dealers premises. 5) Normally a dealer makes money by selling new cars, spare parts and servicing of the cars. In this case, the dealer will also make money for assembling of the car. With little additional investment, dealer would able to make some more money. Hence dealer has one more avenue to make money, so he may agree for less commission. You may say that the dealer will not promote the new car sales. Since 1 Lac car has been discussed in all the forums (courtesy cheapest car in the world as well as Singur land problems), it may not require any ads to promote sales. Since the volume is more, so is more servicing and spare parts sale, dealer may also accept. 6) As I had mentioned earlier, TATAs have a poor record of launching successful models only exception are ACE and TATA INDICA. But One Lac Car Project being prestigious project, Mr. Ratan Tata himself will involve to greater extent. Lets hope that this will increase the chances of success. 7) TATAs have advantage of getting major work done at India, while they get the latest technology of Jaguar and Rovers. Infact this has been major advantages for all the Indian companies when they acquire a foriengn company. To that extent, these new companies may cut down their cost. Major problems with these companies are the higher cost and hence the less profit. Once that is taken care, major part of the problem is over. 8) Both Baddi and Singur plants where TATAs new plants are coming up are enjoying lot of fiscal benefits. This should further help them in reducing their cost of manufacturing. 9) We donot know whether 1 Lac car is going to run on Petrol or Diesel. And since car to be launched initially at India, it is not necessary to meet EURO II standards. 10) They have been maintaining more than 30% ROCE for the last four years and more than 26% ROE for the last three years.PE is 13.5 at CMP and except for the last year all other margins have been growing for the past 4 years. So people have to do lot of thinking before taking any decision. ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: tyler_durden
Date Posted: 23/Aug/2007 at 12:23pm
awesome ..... thats the way to do it.... great points sir...i am just playing devil's advocate and if i had not poked u such wonderful points might not have come  ....
i wud just like to add that 1 lac car will be petrol...cant be diesel..600cc diesel engine will be costly as compared to petrol engine and diesel car has extra spares compared to petrol version plus needs a more sturdy chasis....rest all of ur points re 110% valid....
but dont u think at roce of 30% mkt is discounting it at 13.....
i hope this stock touches the sky...but i am really uncomfortable with auto/mfg companies.....when i joined maruti udyog as a fresh engineer from college the stock was at 330 .... suzuki tookcontrollin stake...bought enormous cost cuttin...profits soared...sales were robust....stock rosed to 1000 in 2 years or so...then came a decile to 700-800 levels and for past so many months both tata and mul are not moving up.... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: ndzapak
Date Posted: 23/Aug/2007 at 12:31pm
First things first... the Rs 1 lakh car will probably sport a 660 cc engine and crank out between 30-33 horses . And yes, it will offer both diesel and petrol drivelines.German Tier One component major Bosch is developing “a brand new” common rail direct injection (CRDi) solution that will be compatible with the Tata Rs 1 lakh car. “For the first time, Bosch is developing CRDi systems at that cost to suit the configuration of an extremely low cost vehicle,”
According to vendor sources, the Tata Rs 1 lakh car will be rear-engined (unlike most cars on Indian roads today which are front-engined ), four-door and four-seat . The strip down base variant will not offer air-conditioning or power steering, say sources. The prototype is ready and may world premiere at the Auto Expo next January.
other interesting details on this link
http://economictimes.indiatimes.com/News/News_By_Industry/Auto/Automobiles/Car_that_will_drive_you_crazy/articleshow/msid-2302665,curpg-1.cms - http://economictimes.indiatimes.com/News/News_By_Industry/Auto/Automobiles/Car_that_will_drive_you_crazy/articleshow/msid-2302665,curpg-1.cms ------------- the Equitydesk is the best |
Posted By: tyler_durden
Date Posted: 23/Aug/2007 at 12:34pm
if 660 cc diesel engine with 30 bhp can be available even at 1.5 lacs it will be a revolution ..... am waiting for its premier  ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: ndzapak
Date Posted: 23/Aug/2007 at 12:40pm
Its definitely developing into one of the most talked, watched,spied,
controversial and of couse most awaited ...........
Success or failure for Ratan Tata this is a " revolution " being attempted. ------------- the Equitydesk is the best |
Posted By: CHINKI
Date Posted: 23/Aug/2007 at 12:42pm
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I was about to ask you whether you are working in any of the car manufacturing companies. When did you join Maruti and how many years you have worked in Maruti?? What are your doing now??
Thanks for that information regarding price movements. Maruti would not have moved much because of Govt. interferences during that time OR is it for some other reasons?? We will have to see how TATA MOTORS will move after all these events. ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: tyler_durden
Date Posted: 23/Aug/2007 at 12:42pm
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if ratan ji can pull this ...he will become henry ford of india... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: Mohan
Date Posted: 23/Aug/2007 at 12:56pm
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Seems like this will do for Tata Motors what Beetle did for VW. ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: CHINKI
Date Posted: 23/Aug/2007 at 10:45am
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Basanthji, I was just going through the stock price of TATA MOTORS since its listing.
As per NSEINDIA.COM chart, it was listed on 26th December 2003 at Rs.438.5. Over a period of time, it has gone upto Rs.990/- and now back to Rs.620/-. So if somebody had bought on January 2004, he would have hardly made less than Rs.200/- over a period of more than 3 1/2 years. That is a return of 46% over that period, means less than 15%. Doesn't it look very less when you see it being a leader HCV, good management and ROE, ROCE have been good for long?? Or is anything we are missing?? ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 23/Aug/2007 at 10:58am
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Tata Motors Ltd on Thursday launched two light commercial vehicles, Magic and Winger in the metropolis. Magic, a four to seven seater passenger vehicle, has been developed on the Ace platform. "The Winger is a new platform altogether and uses the Tata Sumo engine," Tata Motors Regional Manager V K Sahay said. For more details read here: http://economictimes.indiatimes.com/News/News_By_Industry/Auto/Automobiles/Tata_Motors_launches_Magic_and_Winger/articleshow/2305463.cms - ET ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: basant
Date Posted: 23/Aug/2007 at 11:05am
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Tata Motors is listed for more then 3 decades maybe the site is not updated but that is the problem we face when we invest in cyclicals.Check this thread http://www.theequitydesk.com/forum/forum_posts.asp?TID=279 - Never buy a cyclical for the long term . ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: CHINKI
Date Posted: 23/Aug/2007 at 11:18am
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Is it because it is in cyclical industry or any other reasons??
I was just comparing Pantaloon (should not be since they are in different industries). It was listed at Rs.15.5 on 08th November 2001 and went upto 2347.5 before stock split. Grown over 155 times. oooooooooh??? I think it happens once in a while. ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: basant
Date Posted: 23/Aug/2007 at 11:31am
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I think it happens once in a while
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Yes, that is how I would react to it. Autos are cyclicals so we would have that problem unless we are timing the cyclicals. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: prosperity
Date Posted: 24/Aug/2007 at 1:34pm
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Tata Motors was called TELCO and was traded by that name, 3 years ago... Search that website for TELCO and you'll get price/history for 3 decades or so !!
[QUOTE=basant]Tata Motors is listed for more then 3 decades maybe the site is not updated QUOTE]
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Posted By: CHINKI
Date Posted: 24/Aug/2007 at 4:14pm
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Prosperity and Basanthji, both of you are right.
Earlier it was listed as TELCO and as per NSE records which is available since November 94, it was quoting 684 on 05th October 1995. Then it came down till 59 as on 3rd April 2001 and picked up again. It has moved up till 990 and now on downward trend. Now only question whether it is the begining of the downward trend. ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: kannanravi1
Date Posted: 24/Aug/2007 at 9:51pm
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There is too much pessimism in the CMP. 1 lakh car has been not factored in at all. Even if 1 lakh car does not succeed, Indian consumption story should greatly help Tata with its existing product line in PV and CV. Also, Tata is ingenious in creating new market segments (case in point, Ace and now Magic). Even in heavy CV it is coming up with great launches like the World Truck. Tata also might become a big player in Thai pick up market considering that it is already the second biggest selling pick up brand in South Africa (after Toyota but ahead of Ford and GM). Also the tie up with Fiat to make pickups in Argentina is going to open up a new frontier. And to top all of this if the 1 lakh car does indeed take off with 1 million plus volumes (only within India and more to come from Africa), then this stock will deliver wealth like Ford and Toyota have done in the past. I think this stock's growth story is just beginning. ------------- kannan |
Posted By: smartcat
Date Posted: 27/Aug/2007 at 12:28pm
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As a stock, I would prefer Maruti and M&M to Tata Motors.
Suzuki has a big line-up of new models coming up. The designs are all sharp and fresh - something that we Indians love. Meanwhile, Maruti is following the 'carpet bombing' strategy by introducing a model for every price range - from Rs. 2 lacs to Rs. 15 lacs.
The best part about Maruti Suzuki stock is that - Suzuki Japan does all the investments into development of new models. The only thing Maruti has to do is setup a good manufacturing, sales and customer service setup. M&M and Tata Motors are at a big disadvantage here because they have to invest atleast Rs. 1,000 to Rs. 1,500 crores to develop a new model like Scorpio or Ingenio.
I like M&M better than Tata Motors because it is a diversified company with interests in software, real estate, auto components etc.
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Posted By: tyler_durden
Date Posted: 27/Aug/2007 at 4:04pm
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very well put up smart cat.......suzuki japan is developing models and maruti suzuki is churning out big profits....more than1/3 of suzuki s profit comes from maruti ...new wagon r is ready and i liked it....sx4 has marked maruti s presense in this segment ...vitara is modified and price is down from 21 lacs to 15 lacs...giving tought time to ford endeavour and honda crv.....at 2 lacs m800 ...2.70 - 3.10 lacs - alto ...3.4 - 4.5 wagon r, zen
4.4 - 5.5 lacs - esteem, swift...6 lacs and above - sx4 and vitara...
so right from 2 -15 lac whole range is well covered....they have entered diesel also and diesel cars are as good as petrol ones...tata's diesel engine is half as good as maruti's ....
work is going on in full steam to bring down the price of m800 to 1.5 lacs with a new design....... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |