Tata Motors' share price corrected approximately 33% from its recent high and fell below Rs 800 levels. The recent correction in the broader market has invited the fall in Auto sector stocks. Tata Motors' share price turned cheap after the downfall but has raised concern for long-term investors.
However, Tata Motors Future Plans for 2025 seem to be rewarding for investors. The company plans to launch 3 new EV models in 2025. The upcoming models are Tata Harrier EV, Tata Avinya EV and Tata Sierra EV.
If the sales of these EV
vehicles shoot up then, revenue might witness a sharp jump which will
positively impact the net profit. Therefore, long-term investors should hold
the Tata Motors share for good returns.
Nifty 50 is down by 4.35% in the last month due to heavy FII selling from the beginning of November. Tata Motors share, which is a part of the Nifty 50 Index and Nifty Auto Index, has also fallen under the FII selling list.
Tata Motors, a prominent player in electric vehicles (EV) has many future plans. It holds a 72% market share in the domestic EV market and is the 16th largest automobile manufacturer in the world. Tata Motors share might positively impact in future due to its massive expansion plans to dominate the EV market.
Tata Motors Future Plans 2025
Tata Motors Share: Fundamentals
Tata Motors share has delivered 17% returns in the last one year. Its current market capitalisation is Rs 2,91, 093 crore. The stock PE is 8.72 and ROCE is 20.01%. The company has reduced debt and delivered a profit growth of 93.1% CAGR in the last 5 years.
At the end of March 2023, Tata Motors' operating profit was Rs 31,816 crore, and Net profit was Rs 2,690 crore. However, by the end of March 2024, Tata Motors operating profit increased to Rs 59,538 crore and Net profit jumped to Rs 31,087 crore. That’s a massive jump in net profit in just one year.
Tata Motors share price reacted positively after this kind of spectacular jump in the net profit and investors turned bullish on it.
Tata Motors Future Plans 2025
Recently, in September 2024 Tata Motors has launched Curvv dot EV which has attracted the customers looking to invest in EV. In March 2025, 3 more new models of Electric vehicles are expected to launch to increase its EV presence.
After the huge success of Tata Harrier sales, the company is planning to launch the Harrier dot EV in March 2025. It is possible that Harrier EV will boost the sales volume and may show a sharp jump in revenue.
In 2025, Tata Motors is also planning to launch the Tata Avinya dot EV and Tata Sierra dot EV, which will come at higher prices than other Tata cars.
Conclusion
Tata Motors share price PE ratio is 8.72 which is quite low. The technical chart of Tata Motors share shows strong support near Rs 700 levels.
The kind of aggressive EV cars launches, Tata Motors' planning in 2025 is worth appreciating the company goal. It seems like Maruti Suzuki might face tough competition in the passenger vehicle segment in future.
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