Use access key #2 to skip to page content.
$6.18 -0.39 (-5.94%)
10/7/2008 1:43 PM

Tata Motors Limited (ADR) (TTM)

CAPS Rating:
*****

The Company designs, manufactures and sells vehicles, spare parts for its vehicles and engines for industrial and marine applications as well as construction equipment and information technology services.

View All Commentary (TTM)

Recs

3

Avatar boater9384 (< 20) Submitted: 2/14/08 10:22 PM : Outperform Start Price: $17.96 TTM Score: -42.84

Want to talk about a "growth" industry? Indian and Chinese cars on the road combined are supposed to rise to 1.2 billion by 2050 from 20 million today. Now let's count that into the valuation of TTM, India's largest auto manufacturer...

And we get..
One huge winner.

Report this Post Replies: 1 | Reply

Avatar GoNuke (27.47) Submitted: 4/20/08 11:48 PM

Recs: 0 | Rec This

This is a rather simplistic analysis. TATA has a record of making very poor automobiles behind enormous trade barriers.

There is no point in lumping India in with China for the purposes of this analysis. China will not import cars from India. It will only consume cars made locally. If China did import cars it would import expensive ones from Japan or Korea.

TATA is not a low cost producer and it will have to create a huge array of low cost high quality suppliers. The Koreans and the Japanese have far more experience making small inexpensive cars. TATA will not be able to compete with them.

Given the world shortage of oil it is unlikely that the growth in automobile ownership will be anything like your forecast. The Nano will not be a financial success. TATA will not be able to sell Jaguars anywhere because it does not have smaller more fuel efficient cars to offer at the same time to meet first world average fleet fuel consumption requirements. The Nano won't meet any country's standards for safety, reliability, fuel efficiency etc. It's time for a reality check. My mother's mobility scooter, made in China, cost more than a Nano. India may become a great market for small cars but there is no reason to believe that TATA will be the main beneficiary.

Report this Post Reply

Featured Broker Partners