Tata Motors: Market Share Gains Delivered

A key part of the thesis in favor of Tata Motors was the expectation of the JLR franchise gaining market share.

JLR to gain market share in the luxury market given its success in taking both the brands global i.e. China, US and Europe.

Tata Motors: Not Fantastico yet

We feel better now that we have seen the JLR franchise gaining market share.Globally the JLR franchise has been able to increase its market share from 7.16% to 8.15% when compared in the peer basket of Audi, BMW and Mercedes-Benz.

Global Vol sales thru Nov-16 Y-o-Y Volume Growth Vol sales thru Nov-15
Audi 1,648,003 5.56% 1,561,193
BMW 1,506,858 6.44% 1,415,694
Mercedes-Benz 1,388,685 16.16% 1,195,508
JLR 403,154 25.30% 321,762
Total 4,946,700 10.07% 4,494,157
Market share (Jan-Nov-16) 8.15%
Market share (Jan-Nov-15) 7.16%

We like the fact that the global increase in market share is supported by market share gain in all the key geographies

Market share (Jan-Nov-16) Market share (Jan-Nov-15)
China 6.83% 6.03%
USA 10.30% 8.35%
Europe 8.19% 7.36%
Global 8.15% 7.16%

The icing on the cake is the success of Tiago is providing it with a tail wind in the domestic market. We are looking forward to seeing how Nexa shapes up in January-17.

While we don’t assign a very high weightage to the domestic business in our overall view of Tata Motors, but the confidence in the thesis remains given the market share increases delivered.

 



Categories: Stock Views

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