TATA – For the People
As it is already evident that the year 2020 has turned a lot of tables both for good and for bad. The year has definitely been a boon for few big names. One of them is Tata motors. India’s largest automaker company, which is led by Ratan Tata, has always claimed themselves to be “industrialists” instead of “businessmen.” The prime vision of the company has always focused on the people and their needs.
Blessing in Disguise –
The company has always proved its mettle in every field. Until now, the only exception was the production of automobiles. Due to various reasons, Tata Motors was always lagging behind when it came to producing passenger vehicles. However, things took a U-turn for them since the Indian government put forward its new scheme. The “Atma Nirbhar Bharat” or “self-reliant India” made the automobile company witnessed a substantial rise in its stock and hence great profit in its market value.
It all started in August 2020 when “Atma Nirbhar Bharat” was introduced, and people religiously started switching to made-in-India products trending the caption “vocal for local.”
This movement has been a blessing in disguise for Tata motors and several other Indian companies. Tata Motors witnessed a beaming stock market wherein the capitals rose up to 43%. The primary focus of the company is to reduce its debt and bring improvements in its operating margins. The chairman of the company, Mr. N Chandrasekaran, announced that Indian Automobile aims for a minimum period of three years to pay all its debts and to improve its retail volumes.
The rise to the top –
Furthermore, there is a funny turn into the whole story. Initially, in January 2021, a wave of rumor spread across the netizens about Tata getting in a partnership with Tesla, which made the stocks go higher. However, this rumor was cleared by the chairman and Ratan Tata himself, stating that they have not signed any partnership treaty with Tesla.
Instead, it was announced that the company is focusing on its growth as an EV manufacturer. Their goal is to create more robust and efficient electric vehicles.
Watch Mr. N. Chandrasekaran, Chairman, Tata Sons, as he emphasizes the role of shifting to sustainable e-mobility being an imperative for the nation’s development and how Tata Group and Tata Motors is contributing towards India’s Electric EVolution. pic.twitter.com/oelt7Y8f5r
— Tata Motors Electric Mobility (@TatamotorsEV) January 28, 2021
The big news –
Now time for the big news! It’s a historic event for Indian automobiles. Tata Motors is not just competing with its global rivals and but also thrashing them. Witnessing the highest stocks among its global peers, Tata group of companies has seen an automotive debt decline of 55,000 cr. The company generated an FCF of 7900 crores by the end of Q3, resulting in the above-stated debt decline. The customers embrace the already stated Improvement in the passenger vehicles, the JLR, and the commercial vehicles. Thereby adding to the gradual elevation of stocks of the company.
It will be interesting to see how this story unfolds. We hope to see the largest Indian Automaker company turn into one of the best in the world and receive the global recognition it deserves!
It will also be exciting to see how Tata and Tesla compete in the Indian market. Can the Tesla cars withstand the desi conditions? Only time will tell. Until then, keep reading!