Indian Automotive Sector

nrj

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Tata itself is looking to partner with Chery. Tata Motors is in shambles altogether; went below 70rs, ever wretched hole for investors. And that's probably Geely sending a mischievous message to Chery.
 

Kumata

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Tata itself is looking to partner with Chery. Tata Motors is in shambles altogether; went below 70rs, ever wretched hole for investors. And that's probably Geely sending a mischievous message to Chery.
still Doesnt qualifies to be plagirised the way chinese have done it...
 

nrj

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still Doesnt qualifies to be plagirised the way chinese have done it...
They shouldn't, but they could & they did anyway. That's how the world works.

You can't look to partner with the Chinese and hope to retain all the IP at the same time.

Everyone wants to bleed out the JLR and then pick it up at cheap price. Tata should shed JLR, and spare the investors who are kind just because TM was starting to do good job in domestic market. But then you struggle with the volumes & OTOH creating a global consumer brand requires labour and stomach of an adult, maybe another asinine idea like Nano will save them :lol:
 

nrj

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Expect demand for Auto sector to go up in coming months, especially small cars. With fear of infection and stigma (associated to public transport), demand for personal car will pick up. 2-3 cars per household can become norm in urban areas. Traffic jams expected to get worse. Tricks of lower interest rate, higher processing fees or one-time commission will gain traction. RBI should grant few more universal banking licenses to ensure healthy competition. Won't be surprised if some foreign auto makers take exit from market.
 
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LurkerBaba

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Expect demand for Auto sector to go up in coming months, especially small cars. With fear of infection and stigma, demand for personal car will pick up. 2-3 cars per household can become norm in urban areas. Traffic jams expected to get worse. Tricks of lower interest rate, higher processing fees or one-time commission will gain traction. RBI should grant few more universal banking licenses to ensure healthy competition. Won't be surprised if some foreign auto makers take exit from market.
Similar was observed in China IIRC. Huge spike in purchases of personal vehicles
 

nrj

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Similar was observed in China IIRC. Huge spike in purchases of personal vehicles
Don't know if it will be huge spike here, average household income should be able to support.

If someone can make Quadricycle attractive enough proposition in mass-market, there is tons of fortune to be made. Problem is positioning and packaging it well. None of that Nano nonsense. Indian companies aren't exactly expert in creating great consumer brands. Maybe a JV, that lets you use respected brand logo for cheap royalty fees ? Interesting times ahead.
 

captscooby81

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More than cars it will be huge spike in 2 wheeler sales which we will see after the lock down gets lifted . People travelling in crowded buses will surely think twice now to do that considering they are risking their and their loved ones lives with infection .

Car sales will pick up for sure but 3-4th car in family will also come with extra 2 drivers at home if ladies in the house don't like driving which also will come into factor .

or we can finally see sales picking up for Automatic variants across the model ranges considering more people prefer to self drive and have less stress in bumper to bumper traffic
 

nrj

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I've been saying this for a while now :laugh:

Tata Motors has zero value without Jaguar Land Rover: CLSA

"JLR is the only driver of its valuation; we assign zero equity value to the India business. We believe future equity infusions are also likely to be utilised for loss funding and hence we do not attribute any equity value to its India business," it said in a report.
“We assign zero equity value to (Tata Motors’) India business," the brokerage said, citing the company’s rising net debt levels, covid-19 related disruptions and little hope of recovery in the commercial and passenger vehicle segments.
With the coronavirus pandemic crippling demand for automobiles worldwide, Tata Motors is worth nothing without its luxury unit Jaguar Land Rover, according to CLSA.




And JLR problems are even complex & urgent than Tata Motors India. Run to the Chinese !:rofl:

Aatmani....whatever :hehe:
 

nrj

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Even if we assume the CLSA report is motivated, vultures are here for sure.

And they are after JLR IMO, Tata Motors is irrelevant.
 

Kumata

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Even if we assume the CLSA report is motivated, vultures are here for sure.

And they are after JLR IMO, Tata Motors is irrelevant.
Brokerage firm... ah...

IMO tata is doing very good with their recent product portfolio reshuffle in passenger car market and recent launches.. they are still a force to reckon with in commercial trucking bussiness..... so wondering What CLSA is smoking..... is CLSA dominated by chinese.. Last checked it was a japanese firm...
 

nrj

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Brokerage firm... ah...

IMO tata is doing very good with their recent product portfolio reshuffle in passenger car market and recent launches.. they are still a force to reckon with in commercial trucking bussiness..... so wondering What CLSA is smoking..... is CLSA dominated by chinese.. Last checked it was a japanese firm...
You don't need CLSA to determine what shithole Tata Motors is as a company. Good products don't necessarily create good companies, especially when you are late to the market by a decade or more. Name a type of problem and tata motors has it in its bouquet.
 

Kumata

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You don't need CLSA to determine what shithole Tata Motors is as a company. Good products don't necessarily create good companies, especially when you are late to the market by a decade or more. Name a type of problem and tata motors has it in its bouquet.
IMO you are generalising... they do have issues with passenger division but issuing a judgement like CLSA is far fetched....
 

nrj

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IMO you are generalising... they do have issues with passenger division but issuing a judgement like CLSA is far fetched....
Tata Motors is 'B' rated company i.e 'below investment' or 'junk status'.

It has to pay higher interest to investors owning to junk status as yield is speculative.

Tata Motors had to just withdraw 1000 Cr NCD within 3 days of offering conceding to investor response.

Cash flow impact is negative 30K Crores in quarter by even conservative standards in this financial year.

Volume degrowth of Tata Motors is worse than Industry average i.e at -35%

Its PAT as % of operating income is -9% in FY19, worst among all peers (none of them are in -ve)

Tata Motors is the worst performer on S&P Auto index, declining over 50%

YoY sales dip for Feb'20 was -34%, while PV sales dip at -31% and CV at -34% for the FY. This is before any impact from Corona.

JLR contributes to almost 70% of Tata Motors total revenue. Without JLR, Tata Motors is dead in waters.

Tata Motors had the lowest operating margin among 30 meaningful OEMs in the world, it was in fact one of least profitable car maker in the world for 2019.

CY growth is -28%, market share fallen further YoY. It occupies 2 miserable slots in Top 25 selling models in country, ranking on #17 and #20. Both these models have CY degrowth of -32% and -6% respectively i.e Tiago/Nexon. Maruti sold more WagonRs than what Tata could sell as a company all models combined in total.

Tata Motors itself is looking to partner with Chery (a chinese state owned company) to bring in investment & technology for its failing business. JLR is already in partnership with Chery.

Woes of tata motors are naked for everyone. And I have not even covered perceptive matter like brand equity etc. Tata Motors is a shithole company.
 

ezsasa

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Anybody here tracks EV market? have the consumers accepted sales pitch of electric vehicles?
 

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