Tata Motors has launched its first hatchback electric car, Tiago EV, which many analysts say has the potential to become the bestselling EV in India. Brokerages are bullish as they expect a 30-35 percent upside in Tata Motors shares which have risen 3.6 percent since the launch on Wednesday.
The car’s variants cost between Rs 8.49 lakhs and Rs 11.79 lakh, ex-showroom. These are the introductory prices for the first 10,000 consumers, and the first 2,000 units would be reserved for current Tata Motors EV customers.
At 11:06 am, the Tata Motors stock was trading 1.8 percent higher from the previous close at Rs 406.55 on BSE. In the past year, the stock has increased investors’ wealth by 23 percent as against the benchmark Sensex, which has fallen over 4 percent.
Jefferies, which has a buy rating and Rs 540 target price on the stock, Tata Motors has priced Tiago EV reasonably. Jefferies noted that with the new launch, EVs form 8 percent of Tata’s India passenger vehicle volumes.
Tiago EV joins the existing lineup of Tata EVs — Tata Tigor EV and Tata Nexon EV. Tata Motors plans to have a portfolio of 10 EVs by 2026. Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Ltd., and Tata Passenger Electric Mobility Ltd., sees Tiago EV as an ideal fun hatch that offers premium, safety and technology features, an eco-friendly footprint, and spirited performance, with the added advantage of a low cost of ownership.
Jefferies sees potential in the carmaker to gain more market share as EV penetration rises.
Global brokerage Nomura, too, has a ‘buy’ stance on Tata Motors with a target price of Rs 520 per share. It sees Tiago EV becoming the bestselling EV in the country and expects 3,000 to 5,000 units of the car to be sold per month.
It also noted that the total hatchback segment sells 44,000 units per month, and the economy hatchback segment accounts for 50 percent of the segment in the first five months of FY23.
Tata Motors' overall EV sales shall touch 60,000 units for 2022-2023 and 96,000 for the next financial year, Nomura said.
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