Tata Motors Limited, the largest Electric Vehicle (EV) maker in India has entered into an agreement with the US-based company Uber, India’s leading ridesharing platform, to supply 25,000 of its X-Pres-T electric sedans. This is the largest electric vehicle order in India so far.
The Tata group company is expected to deliver the order over the next 12-15 months. Uber will collaborate with financiers to assist medium and large-sized fleet operators on its platform in purchasing these EVs by easing access to the vehicles in a supply-constrained environment.
Further, in the press release, the company said that the vehicles will be deployed in seven major Uber markets, including Delhi NCR, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, and Ahmedabad, in a phased manner.
Part of the USD128 billion Tata group, Tata Motors is among the world’s leading manufacturers of automobiles. The company is also a market leader in the electric passenger vehicle segment in India.
In Q3FY23, the company reported a total revenue of Rs 88,488.59 Crore compared to Rs 72,229.29 Crore in the same period the year earlier. Further, the company turned profitable after posting a profit after tax of Rs 2,939.78 Crore compared to a loss of Rs 1,338.17 Crore.
Domestic brokerage firm Motilal Oswal Financial Services has a ‘Buy’ call on Tata Motors with a target price of Rs 540 per share which represents an upside of 22% from the current levels.
A strong recovery in JLR, a sustained resurgence of the India business, and a possible monetization of its stake in Tata Technologies (possible value of INR 25-47/share for the company) are the key catalysts for the stock over the next 12 months, the brokerage highlighted in its note.
Written by Anoushka Roy
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