Tata Motors Rises to 16th Most Valued Automaker Globally, Surpassing Kia

11 Jul 2023 , 12:26 PM

Tata Motors has surpassed Kia Corporation in terms of market capitalization, making it the 16th most-valued automaker globally.

The surge in Tata Motors’ shares on Monday followed a 30% year-on-year increase in global wholesale dispatches by its subsidiary, Jaguar Land Rover (JLR), during the June quarter. With a market valuation of $27.15 billion, Tata Motors is now positioned just below Hyundai Motor in terms of market capitalization.

JLR reported a 30% year-on-year growth in wholesale volumes for the April-June quarter, excluding its China joint venture. Retail sales for JLR experienced a 29% surge, with significant growth seen in China and North America, while European sales remained flat.

The strong demand was particularly notable for JLR’s Range Rover, Range Rover Sport, and Defender models, which witnessed retail sales growth of 199%, 42%, and 90%, respectively.

JLR’s total order book stood at 185,000 units at the end of June, slightly lower than the previous quarter due to ongoing chip and supply constraints. JLR contributes nearly 60% of Tata Motors’ revenue, highlighting its importance to the business. JLR has projected a free cash flow of over £2 billion for the current fiscal year.

Separately, Tata Motors announced that its hatchback model, Tiago, has surpassed 500,000 units in sales, showcasing its popularity despite a decline in the entry-level segment in the domestic market. The Tiago range offers multiple powertrain options, including petrol, CNG, and electric variants, while the Tiago NRG variant features an SUV-inspired design with off-roading capabilities, available in both petrol and CNG options.

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