ABOUT THE COMPANIES

Tata Motors Limited (formerly Tata Engineering and Locomotive Company) is an Indian multinational automotive company, founded by JRD TATA and Ratan Naval Tata, headquartered in Mumbai and part of the Tata Group. Company operates in four segments of automotive industry which includes, Commercial Vehicles, Passenger Vehicles, Electric Vehicles and Luxury Vehicles.

Mahindra and Mahindra (formerly Mahindra & Mohammed) is an Indian automobile manufacturing company founded by Malik Ghulam Muhammad, Jagdish Chandra Mahindra, Kailash Chandra Mahindra, headquartered in Mumbai and a part of the Mahindra Group. Company operates in 9 segments of Automotive industry which includes, SUV, Electric SUV, Electric Hyper Car, Commercial Vehicles, 2-wheeler and Roxor (North America).

Manufacturing capacities and Presence

Tata Motors has a widespread global presence in 125 Countries which includes Indonesia, Vietnam, Thailand, Bolivia, Paraguay, Bahrain, Kuwait, Egypt, Morocco, Qatar, Oman, Saudi Arabia, UAE, Tunisia, Bangladesh, Bhutan, Nepal, Sri Lanka, Angola, Ghana, DR of the Congo, Kenya, Mozambique, Ivory Coast, Nigeria, Senegal, South Africa, Tanzania, Uganda and Zambia. Company has 9400 touch points across the globe with 7 Assembly factories, 9 R&D centres, 25 manufacturing facilities and 3 Design Labs.

M&M has a widespread global presence in regions like APAC, Africa & Middle East, and South-Central America. Its footprint spans across Australia, Bangladesh, Bhutan, Indonesia, New Zealand, Nepal, Sri Lanka, UAE, Kenya, Mozambique, Morocco, South Africa, Tunisia, Chile, Guatemala, and Peru. The company has a total of 66 manufacturing facilities for production of Automotive, Tractors & farm machinery, two-wheelers, and others. Out of these, 41 facilities are in India and other 27 are in various countries across the world like USA, Turkey, UAE, Algeria, etc. It also has R&D facilities in the USA, China, Japan, India, Turkey, Finland, Italy, France and the UK.  

Commercial Vehicle Segment Comparison:

Tata Motors is No.1 CV manufacturer with 39.1% market share in CV segment and 49.3% in HGV+HMV, 39.2% in MGV, 33.1% in LGV, 37.2% in Commercial Passenger vehicles. It offers Trucks, Buses, Vans, Small Trucks and Smart Mobility Solutions through its subsidiaries TDCV, TDSC, TMML, TMSA, PTTMI and joint operation TCL. Company offers wide range of Trucks in various sizes and fuel types which includes ILMCV trucks, Haulage, Tractor and Tripper under different brand names such as Prima, LPT, Sigma and Ultra. It also offers variety of Buses and Vans for different operations such as City Buses, Intercity Buses, Suburban Buses, Staff and Contract buses, School Buses, School vans, Ambulance Vans and Tourist Vans in various fuel types of EV, CNG and Diesel under various brand names such as Star Bus, Ultra and Cityride for Buses and Magic and Winger for Vans. In Small Commercial vehicle segments company’s product portfolio includes TATA ACE, TATA YODHA and TATA INTRA with various fuel types. Tata Motors is the 4^th Largest commercial passenger vehicle manufacturer world-wide.

M&M is India’s 2nd largest Commercial vehicle and Largest small commercial vehicle (LCV) player in the domestic market of India with 50% market share in LCV. Company offers variety of vehicles in different sizes and fuel types such as haulage, Tipper and Tractor Trailer under brand name BLAZO and intermediate commercial vehicle under brand name FURIO. In light commercial vehicle segment company offers various vehicles under brands FURIO7, JAYO, LOADKING OPTIMO and Special Application. Company also manufactures passenger buses under brand name of CRUZIO and CRUZIO Grande. In pickup segment company offers BOLERO MAXX in various fuel types. Company also has a separate subsidiary named Last Mile Mobility where it offers various 3W and 4W vehicles in various fuel types including EV.

Passenger Vehicle Segment:

Tata Motors offers varied range of passenger vehicles starting from mini vehicles to SUVs. Its product portfolio includes Tiago, Altroz, Tigor in Mini, hatchback and Sedan segment. In SUV segment company offers Punch, Nexon, Harrier and Safari. Company also offers Jaguar F, E and I pace, jaguar F Type, jaguar XE and Jaguar XF under its luxury car brand Jaguar and Range Rover, Defender and Discovery under its another luxury car brand Landrover. It is No.1 SUV manufacturer in India with 13.7% market share.

Mahindra and Mahindra focuses on SUV segment where it offers various products such as XUV 3Xo, Scorpio N, XUV 700, THAR, Bolero, Marazo and XUV 400. Company has 21.6% in SUV segment and 50.9% market share in LCV segment.

Electric Vehicle Segment:

Tata Motors is the torch bearer in EV segment with 67% market share. Its product portfolio includes Tata Currv (latest launch), Nexon.ev, Punch.EV, Tiago. EV and Tigor.EV under its EV subsidiary. Company has also unveiled various concept cars which includes Harrier. EV, SIERRA.EV, AVINYA, CURRV and TIAGO.Ev. Company has also announced the capex of approx. Rs. 8,000 crs. for its electrification readahead.

Mahindra and Mahindra has also launched its EV model of XUV400 in 2 different variants. It has also unveiled its concept EVs under BEV brand which includes BE.05, BE.07, BERALL.E, XUV.E8 and XUV.E9. Company has formed Strategic partnership with British International Investment, for a new EV Co., for development, manufacturing and selling of 4 Wheel Passenger EV’s with a total capex of approx. Rs 8,000 crs. from FY24 to FY27.

Financial KPIs:

Quarterly Results of Q1FY25 :

Tata Motors reported Net Sales of Rs 108,048.00 crore in June 2024 up by 5.68% and Quarterly Net Profit of Rs. 5,566.00 crore in June 2024 up by 73.79% from Rs. 3,202.80 crore in June 2023. Its EBITDA stands at Rs. 17,360.00 crore in June 2024 up 19.08% from Rs. 14,578.26 crore in June 2023.

M&M reported Net Sales of Rs 37,217.72 crore in June 2024 up 9.81% and Quarterly Net Profit of Rs. 3,282.63 crore in June 2024 down by 6.44% compared to same period in previous year.  Its EBITDA stands at Rs. 7,651.89 crore in June 2024 up 8.49% from Rs. 7,052.94 crore in June 2023.

Sales Figures of JULY month:

Tata Motors reported total sales of 71,996 units in July 2024. Its PV sales was at 44954 units with degrowth of 6% in YOY and its CV sales was at 27042 units with degrowth of 18% in YOY.  Its Total sales for MH&ICV Domestic & International Business in July 2024, including trucks and buses, stood at 11,886 units compared to 13,830 units in July 2023. Company registered 5027 EV vehicles including Domestic and International business marking 21% degrowth in YOY basis.

M&M’s overall auto sales for the month of July 2024 stood at 66,444 vehicles, including exports. In the Utility Vehicles segment, Mahindra sold 41,623 vehicles in the domestic market, a growth of 15% and overall, 42,012 vehicles, including exports. Its domestic sales for Commercial Vehicles stood at 19,713.

CONCLUSION:

Both companies have generated good wealth for the investors in past 3 years and both homegrown brands are giving tough competition to international brands in all segments so in a way both are good companies to invest for long term. Considering the wider range offered by TATA motors it might be the first choice for investors along with taking into considering the market share of the company in EV segment.

Which one you will prefer for investing point of view? And of course, for driving point of view? let us know on info@smartinvestment.in and you can also request for comparisons between any companies or sectors, in return we will try to cover it in our next report! 

Comparative Analysis by: HET ZAVERI

info@smartinvestment.in

(Disclosures: Above mentioned is not an investment advice, it’s just a comparison of two likewise companies of same sector which may help in taking advised decisions for investors. At the time of writing this article, author, his clients & dependent family members may have positions in the stocks mentioned above. The author, his firm, his clients, or any of his dependent family members may make purchases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested interest obviously in their going up or down as the case may be.

Disclaimer: Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken by them. The author will not be liable or responsible for any legal or financial losses made by anybody. Investors must take advice from their financial advisors before investing in any stocks.)