Target: ₹530

CMP: ₹402.30

Tata Motors has launched Tiago EV at an ex-showroom price ranging from ₹0.85 mn to ₹1.18 mn. The car's exterior and interior design remains same as the ICE version. In terms of performance, the EV model's acceleration is better compared with the ICE version. The EV model offers two battery size options at 19.2 KWh with a range of 250 km (ARAI certified) and 24 KWh with a range of 306 km. It features an 8-year/160,000 km warranty on the battery and motor.

TTMT's EV volume would be limited by capacity constraints. The target is to reach 50,000+ units in FY23 and 100,000+ units in FY24. We expect the industry to be around 150,000 in FY24.

The company has been the leader in E-PVs and has targeted 10 models by FY26. Considering the strong head-start for the company, there is a high probability that the EV market's share should be higher than ICE's market share over the medium term.

We retain our constructive view on TTMT, led by expectations of volume upturn in both standalone/JLR divisions, aggressive cost savings, and debt reduction.