Tata Capital, Tata Autocomp Systems, Tata Passenger Electric Mobility, BigBasket, Tata Digital, Tata Electronics, Tata Housing and Tata Batteries are among the list of companies being primed to tap the capital markets. The group has been aggressively looking to scale up in new-age sectors such as digital, retail, semiconductors and electric vehicle batteries, among others.
Companies are aiming to democratize the electric power train in personal mobility to break consumer resistance over affordability through more mass-market choices than ever before.
Stalin and senior executives of Tata Motors were present in Chennai for the signing of the MoU. It will be Tata Motors' second plant in southern India, after Dharwad in Karnataka, and marks the second big-ticket automobile investment in Tamil Nadu, following Vietnamese company VinFast's recent announcement.
The 30-share BSE benchmark Sensex surged 33 points or 0.05% to settle at 74,119. The broader NSE Nifty gained 19 points or 0.09% to end at 22,493. Tata Steel, Tata Motors, JSW Steel, and Bajaj Finserv were the top gainers. Bajaj Finance, Asian Paints, ITC, Nestle India, and TCs also closed higher. Axis Bank and ICICI Bank closed lower.
While the commercial vehicle business and its related investments will be housed in one entity, the passenger vehicle business (PV), electric vehicles, JLR and its related investments will form another entity "as there are limited synergies" between the two, the company said in a stock exchange filing on Monday.
From the Sensex pack, Tata Steel, M&M, Tata Motors, Maruti, JSW Steel, and Power Grid opened with gains, while Sun Pharma, Infosys, Nestle India and HUL opened with cuts.
Tata Motors expects domestic passenger vehicle industry growth to moderate to <5% in the next fiscal, but remains optimistic about electric vehicle sales. They plan to focus on micro markets, expand the exclusive sales network, and introduce new electric vehicles. Challenges include EV charging infrastructure growth and commodity price monitoring.
As India emerges as a key player in the global electric vehicle market, companies like Tata Motors and Ather Energy are actively recruiting expat talent, seeking expertise in R&D, engineering, and strategic partnerships to fuel their growth in this burgeoning industry.
The intent to buy hybrids over pure battery electric vehicles comes to the fore even as EVs benefit from state as well as central government funded incentives which in turn has allowed manufacturers to price them better as compared to hybrids. This is despite the hybrids costing more than EVs.
Uber Technologies CEO Dara Khosrowshahi met Tata Sons chairman N Chandrasekaran in Davos earlier this year and they're expected to talk again in Mumbai during the former's upcoming India trip to discuss the broad contours of a potential alliance, executives aware of the matter said. The exact terms of engagement are still being worked out and there's no guarantee it will lead to anything concrete.
India imposes 100% import duty on cars with cost, insurance and freight value of more than $40,000 (about Rs 33 lakh), and 60% for those below that threshold. Tesla is willing to invest up to $2 billion if the Indian government offers reduced import duty of 15% on imported electric cars in the first two years of operations, ET reported in December.
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