Maruti and Hyundai will soon launch electric cars in India, due to which the shares of Tata Motors are falling and this means the monopoly of Tata Cars in the electric segment is going to end soon.
In the last 5 years, Tata Motors did a great job and captured the EV cars market by launching multiple electric cars like Tiago EV, Tigor EV, Punch EV, and Nexon EV. By selling new variants of cars in the electric segment, Tata Motors made a good profit and the same can be seen in their stocks from 2020 to mid 2024. The share price of Tata Motors which was at around Rs 65 in April 2020, its value increased to Rs 1179 in July 2024, which means Tata Motors doing great.
But from there the downfall of Tata Motors’ share started and the share price which was touching new heights each day… dropped to Rs 810. Experts say this can even fall more to Rs 750 or Rs 725 because Maruti and Hyundai who are number 1 and number 2 in the petrol segment cars… announced to launch EV cars in the Indian market very soon and once this happens, they will give tough competition to Tata motors electric cars.
In short, the monopoly of Tata Motors in the EV segment is now being challenged by the largest car manufacturers in India and once these companies launch their cars in the market, customers will first prefer Maruti or Hyundai cars because they are good in design, they are also affordable, and they’re after sales service is available almost everywhere.
Before ending this, I would like to clarify one more thing Maruti and Hyundai are not the sole reasons for Tata Motors’ share price downfall. There are other factors like:
- Inflation is at its peak
- No Jobs or Fewer Jobs
- No Increment in Salary
- Lack of EV Infrastructure
- High Price of EV Cars
Question 1: If Maruti launches electric cars, could this lead to a decline in Tata Motors’ share prices?
At present Tata has a monopoly in the EV segment and they cover 60-70% of the market share. On the 2nd MG Motors comes, and on the 3rd Mahindra & Mahindra is leading in the EV cars market. But this percentage will change soon when Maruti launches its EV cars in the market.
Maruti targets middle-class families and middle-class families always look for the best quality, best service at affordable prices. For now, other brands selling EV cars at higher prices, but when Maruti launches their electric cars… the price would be 20-30% cheaper. In short, if Tata Motors sells entry-level EV cars at Rs 6.99 lakh then Maruti will sell that same entry-level car with the same features for around Rs 4.99 – Rs 5.49 and here the game will change.
Question 2: If Hyundai launches electric cars, could this lead to a decline in Tata Motors’ share prices?
Hyundai is another big competitor of Tata Motors, and Hyundai targets middle and upper-middle-class families. Though they sell less, they make a good profit. Maruti is the first choice of a lower-middle-class family, but when it comes to middle and upper-middle-class families they all prefer Hyundai cars because Hyundai offers better safety and the design of Hyundai cars is quite modern, and like by the young generation and they are packed with latest features too.
The price of Hyundai cars — if I talk about the entry-level cars… then it could be 5-7% less than Tata Motors entry-level cars or it could be the same as Tata EV cars. But here the service and finishing would be better than Tata Motors and hence people prefer Hyundai cars over Tata cars in many areas.
In the coming years, we might see Maruti and Hyundai stocks rise, while Tata Motors’ EV stock prices could experience some temporary dips. However, this doesn’t necessarily mean that Tata Motors’ share price will fall drastically below Rs 400, Rs 300, or Rs 100. Since it’s uncertain which company will outperform in the future, Tata Motors’ share price may also rebound as the market gains clarity on each company’s performance.
That’s our view on Tata Motors’ EV cars and Tata Motors’ share price. If you would like to share anything, please let us know in the comments, and don’t forget to share.
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