Tata Motors Ltd has achieved a significant milestone by surpassing Maruti Suzuki India Ltd in market capitalization making it the most valued automaker in India. At the close of Tuesday's trading on the National Stock Exchange (NSE), the combined market capitalization of Tata Motors and Tata Motors DVR shares reached Rs 3.17 lakh crore, outshining Maruti Suzuki's Rs 3.13 lakh crore.
Tata Motors' rise to the top was fueled by a remarkable surge in its shares, which climbed as much as 5.3 percent to Rs 885.95 during intra-day trading. Ultimately, the shares settled at Rs 864.90. In comparison, Maruti Suzuki closed at Rs 9,950. The differential voting right (DVR) shares of Tata Motors also achieved a new high, reaching Rs 589.40 and closing at Rs 572.60.
DVR Shares Background
DVR shares, a distinctive class with varying voting and dividend rights, were introduced by Tata Motors in November 2008. These shares played a important role in financing the purchase of Jaguar Land Rover from Ford Motors. Tata Motors, planning to streamline its capital structure, announced the cancellation of DVR shares in July. The move involves issuing seven new ordinary shares for every 10 DVRs with completion expected by the middle of the upcoming financial year.
Financial Performance and Future Plans
Tata Motors holds the distinction of being the largest commercial vehicle manufacturer and the third-largest passenger vehicle manufacturer in India. The group's global wholesales, including Jaguar Land Rover, experienced a noteworthy 9 percent YoY increase, reaching 3,38,177 units in the October-December 2023 quarter. Notably, Tata Motors dominates the domestic electric car market with an impressive 80 percent share, having sold 69,153 electric passenger vehicles in 2023.
Forward Momentum
Looking ahead, Tata Motors has an ambitious roadmap, planning the introduction of two pure electric vehicle architectures. With a goal of offering a portfolio of ten electric vehicle models, the company will leverage Jaguar Land Rover's premium EMA electric vehicle architecture for the Avinya range. Simultaneously, an all-new pure EV compact vehicle architecture, Acti.EV, will power upcoming models like the Harrier, Curvv, Sierra, Punch EV, and the anticipated Altroz EV. These strategic moves position Tata Motors as a powerful force in the evolving landscape of the Indian automotive industry.