The Indian automotive industry has witnessed a significant boost in the last couple of decades, and what once was a pretty closed-off industry, thanks to the protectionist policies of the yesteryears. In the post-liberalization era, the Indian automotive sector gained steam, and we witnessed a lot of foreign manufacturers, like Hyundai, General Motors, etc., enter the country. But this onslaught of foreign cars and vehicles motivated the Indian manufacturers to pump their operations into overdrive as well, and one company that progressed the most in this era is Tata motors. This progress is evident in Tata motors share price as well, which we will be discussing here.
Once a typical Indian car company that sold rebadged versions of foreign cars, like the Tata Estate and Sierras, Tatas announced their arrival in the automotive sector with the launch of the Tata Indica, a vehicle that was designed, tested, and built in India, and that too with Indian components. In a weird twist of fate, the Indica went on to be sold as the Rover Cityrover in the UK as well.
The Nano project to get Indians on four wheels was pretty successful in developing Tata’s forward-looking image as well. When other contemporary automobile manufacturers in India stuck to their comfort zones and played in the sectors that they understood well, Tata Motors decided to take risks, and that certainly paid off dividends in the long run, and this developmental mentality is what drives Tata Motors share price more than anything else. Now, let us take a brief look at some of the significant vehicles to come out of their stable.
- Tata Motors dominates the commercial vehicle space in India, and models like the Tata Ace, Tata Prima, Tata 1613, etc., are some of the most widely manufactured commercial vehicles in the world. In fact, their commercial product portfolio is so vast that there is something for everyone.
- Tata was one of the first Indian manufacturers to offer a practical SUV to Indian car owners and fleet operators in the form of the Tata Sumo. The model was so successful that every SUV in the Sumo segment came to be called a Sumo colloquially.
- The Tata Nano was an ambitious project undertaken by the company and conceptualized by the visionary industrialist Mr. Ratan Tata himself. This car showed India what a truly compact car meant, and it also pushed vehicular adoption forward in the country.
- When it comes to defence vehicles, Tata’s vehicles are some of the best there are. Models like the Safari GS800 are absolute legends of the segment, and they are much loved in the country.
- Tata was the first Indian manufacturer to provide a performance-oriented car in the form of the Tigor JTP and Tiago JTP. Yes, there have been performance vehicles in India in the past as well, like the Skoda VRS models, but an Indian performance car was significant in itself.
- As the world transitions towards electric vehicles, Tata is one of the first Indian manufacturers to offer a sensible electric car in the form of the Nexon EV, a model that is setting the sales charts on fire with each passing year.
These are just some of the long-term factors that have been positively affecting Tata motors share price for quite some time now, and every Indian who open demat account, considers getting Tata motors as one of their first shares.
In 2022, Tata motors share price was popularly discussed, and the figures that they have been reporting consistently leave a bullish attitude in the minds of the investors. The shares of the company are trading at decent levels, and they reported an annual revenue of Rs. 2,78,454 crores in 2022. The promoter holding in the company is pretty decent as well, and that drives confidence as well. The share is so promising that FIIs are showing significant interest in the company as well.
In 2022, the company announced a hike in the prices of its vehicles as well, something that would reportedly improve the margins of the company. This news has positively affected investor sentiment, and the share prices have witnessed a significant rise as well.
The owner of legendary car manufacturers like Jaguar and Land Rover is heavily invested in the future of the Indian automotive sector, and several significant cars are scheduled to be launched shortly, like the Altroz EV, Sierra, Avinya, etc. These models are expected to reinforce Tata’s dominance in the passenger vehicle segment, while their commercial vehicles are being increasingly exported to other countries, thereby boosting total sales figures. All these factors, when combined, make this a lucrative prospect for anyone who wants to grow their wealth.
Final take:
The Indian automotive industry has played a crucial role in the overall economy of the country, and Tata motors are in no small way responsible for that. If you want to open demat account in this day and age, you should consider having Tata motors shares in your portfolio, as the sentiment around them is significantly bullish.