[The Observer]

Tata Motors stock value has been on a steady decline for over an year now. It is a very widely analyzed company and though the Indian PV segment is showing some positive news in terms of new launches, the CV segment is going through pressures especially due to the recent tonnage increase, the third part is JLR which accounts for a major part of Tata Motors revenues, so even a small cough and sneeze there translates into major stock price action. Smartcat has rightly pointed out the plant shutdown at JLR due to slumping Chinese sales.

I do not think the current beating it is taking is due to the general market conditions now, it is actually due to is own business situation.

The stock market really does not care if you are a large OEM or you have a vision for 2030 EV or any such notions, it just follows the economic situation the company is in, financial health , competition, earnings growth , free cash flow etc.

Long term i believe Tata Motors will come out stronger but i personally would not buy the stock until after i see strong upticks ( i am OK to miss the juicy valuations it is at now, while i keep a watch)

[ajmat]

Originally Posted by smartcat

Y

- JLR reported a nearly 50 percent drop in sales to China as import duties and a trade war with the U.S. hurt demand
- About 45 percent of the firm's sales are diesel models, which have been hit by clampdowns and tax rises in some countries as governments try to cut air pollution
- Investor concerns about impact of any Brexit-related loss of free and unfettered trade with the European Union

My responses to these points are:

1: China will pick up once the duties have stabilised. With plants in China, RR will mop up the demand gaps lost by Mercedes and BMW due to the US origin tariffs on their SUV's.

2: Main focus will be to get rid of the stock and complete any corrective iterations from the WLTP programme.

2: Brexit - a lot of it is vocal but JLR have the Slovakian plant ready and waiting to overcome this. Britain might lose more than JLR

[sgiitk]

In my view the auto Industry is in a transformative phase as we move away from the IC Engine to the EVs and hybrids (ideal for India imho). In many ways being a diversified group Tata may be better placed than most. Let us see how they cope. Transformation may be dramatic, like the demise of Kodak and Polaroid. in the photography arena

[volkman10]

Originally Posted by sgiitk

In my view the auto Industry is in a transformative phase as we move away from the IC Engine to the EVs and hybrids (ideal for India imho).---

We are yet to implement BSVI and you are talking moving away from it

Nothing is going to change drastically till 2030, we may see hybrids in the meantime but the main stay will still be the conventional power-trains with a shift to petrol.

[gkveda]

I am sure, my post will look like offtopic. But, I am trying bring your focus back to your primary requirement of purchasing a Good Car.

Are you planning to purchase a good car that suits your height and meet your other requirements ? If yes, then the primary focus to be worried about is, satisfying your heart, brain and family. The parameters to measure the satisfaction level of the above three organs (Family is part of one self) given the budget limitations of one self could be few of the below (This is put in my order of preference. This can be different and unique for everyone)

1 Reliability
2 Smoothness
3 Comfort
4 Ride quality
5 Performance
6 Re-sale value
7 Looks

While Company strategy, their focus, Vision etc are important to discuss and analyze, I am not sure of the weightage to be given for these parameters for purchase decision.

In my opinion, please close your eyes on these aspects and do a market survey of which car best suites you and go ahead with your decision by considering few of the above parameters listed

[DragonHawk]

Primary reason why Tata stocks has been on free fall is because of revenue impact from lower sales of JLR. As you might be aware JLR is Tata motors cash cow as it gets more than three-fourths of revenue from it. So irrespective of the fact the Tata motors have registered decent growth in local market but Tata motors overall market performance is majorly impacted by the performance of JLR. With ongoing macroeconomic issues like US-China trade war, currency woes and brexit, things will remain tough for Tata motors.

[anjan_c2007]

It's the JLR shadow that has robbed the sunshine from the Tata Motors' shares. A few years ago, it was JLR that was single-handedly buoying up Tata Motors', shares as it was in robust health, but now its the other way round. JLR's Chinese sales are down about 46.2 % in September 2018 as compared to August 2018 and the low demand due to uncertainity for diesel cars (stringent emission laws) are taking their toll. They are forced to cut and stop production in one U.K. plant. The greatest killer is the forthcoming Brexit, that is likely to affect JLR the most, as its major production bases are in the U.K.

At a time when things are looking up for Tata Motors' Indian operations after more than a decade of sluggishness, JLR shows negativity in growth due to such unforeseen reasons. The turnover of Tata Motors' Indian operations is unlikely to help the shares gain in value. JLR's ill-health and market sentiments are disfavouring a bull run for the share.

[sgiitk]

Originally Posted by volkman10

We are yet to implement BSVI and you are talking moving away from it

Nothing is going to change drastically till 2030, we may see hybrids in the meantime but the main stay will still be the conventional power-trains with a shift to petrol.

BS-VI comes in 2020 summer. In any case a lot may depend on your routine travel. If charging is available or your drive is normally short then EV may be preferred. Remember EVs have simpler design, and need less service. There is talk of lower insurance charges in the west. So I am not too sure.

[Jakku]

I don't know whether they will recover from the current slump for JLR which is driving down the overall situation for them, but I really hope so and pray for it. However, I am sure about one thing, without a change in the attitude of Tata Motors, this will not be possible.

I am an owner of Nexon and I have seen multiple cuts they are making on the car which was launched. They do it in the name of the feedback from customers and I am really skeptical if that is true. To give an example. I bought XZA+ variant, there is one cut which I really felt missing. The rear 12V socket. They changed from Bridgestone Turanza to Good Year Accelere tyres. Now there is another circular which says they are doing away with the current set of alloys; the "P" button in the front panel which will bring up the camera even when not in reverse gear; the illumination in the power window switches.

Come on Tata, this is pure cheating as the SA will bring a car which has all these as a demo/ test drive car and then when you get one, it will be different. When you complain, you will have a guy from Tata who claims he or she is some territory manager something similar and claim they did it due to customer's feedback. It is better to launch a new version/ "facelift" deleting these features and adding some stickers here and there.

I have been owning Nexon for the last 3 months, no one has called me for a feedback on any feature to know if it is useful or useless. I have 2 friends of mine whom I convinced to go for a Nexon (before my purchase), checked with them as well, none has received such a call. I have 2 colleagues who owns Hexa, I checked with them, none of them have received any such calls. So, I feel, all these "customer feedbacks" are bogus; some ideas generated by some crappy managers at product side (who feels by shaving eyebrows, one's weight can be reduced) been pushed to customer in the name of feedback.

Now, with all these hate, do I still recommend a Nexon to others? Yes, a big yes, it is purely because of the virtue of the car. Had this same car came with the Suzuki logo (absolutely no changes other than logo), it would have been selling in 20K+ becoming the most sold car in a month. The reason why Tata is still struggling with brand value is due to such acts of themselves. A trust once lost will be difficult to regain.

I am really angry and saddened with this attitude of TM.

[Kosfactor]

Originally Posted by Jakku

Now, with all these hate, do I still recommend a Nexon to others? Yes, a big yes, it is purely because of the virtue of the car. Had this same car came with the Suzuki logo (absolutely no changes other than logo), it would have been selling in 20K+ becoming the most sold car in a month. The reason why Tata is still struggling with brand value is due to such acts of themselves. A trust once lost will be difficult to regain.

I am really angry and saddened with this attitude of TM.

I felt the same about my Nano GenX XT, what an amazing vehicle. They truly give you more car per car. I did not sell it due to any defect, it held its value well and used it as a down payment for new vehicle.

What I have understood is, features change from model year / production batch, some parts or its vendors too will change from batch \ model year.
Nano pearl white comes with different interior colors, different shape gear knob etc.

How do we avoid such things?

All the cars I have bought so far have been after seeing the actual vehicle in the yard, I do not book till I see it and then I take the VIN for reference later. If the car has waiting period, maybe it is a good idea to not let them process the loan till you see the car and satisfied that it has everything. We have done this for our friend`s vehicles as well. It takes some back and fourth, but i`m sure its worth it.

[ananthacharya]

Originally Posted by Jakku

I have been owning Nexon for the last 3 months, no one has called me for a feedback on any feature to know if it is useful or useless. I have 2 friends of mine whom I convinced to go for a Nexon (before my purchase), checked with them as well, none has received such a call. I have 2 colleagues who owns Hexa, I checked with them, none of them have received any such calls. So, I feel, all these "customer feedbacks" are bogus; some ideas generated by some crappy managers at product side (who feels by shaving eyebrows, one's weight can be reduced) been pushed to customer in the name of feedback.

I am really angry and saddened with this attitude of TM.

Surprisingly in the last 4 months of owning the Nexon, i have got feedback calls almost once in 15 days. After the 3rd call i gave an earful for asking the same questions and the calls stopped for next month. The month after, i started getting calls in the local language with the same questions

I had used their Imaginator tool on the website and i got a few feedback calls for that as well. The feedback i gave here was a few minor issues like GUI, Speed and Model availability on the tool and it was fixed shortly there after!

[akshay380]

Originally Posted by Jakku

I am an owner of Nexon and I have seen multiple cuts they are making on the car which was launched.

Can you confirm once with TAMO central helpline if your number is updated correctly? I have some friends owning various Tata cars and they do get feedback calls. One dude didn't and he found the data entry operator had entered his number starting +91 as just 91 thus skipping last two digits!

[Jakku]

Originally Posted by ananthacharya

Surprisingly in the last 4 months of owning the Nexon, i have got feedback calls almost once in 15 days.

Originally Posted by akshay380

Can you confirm once with TAMO central helpline if your number is updated correctly?

Apologies for confusing you and the T-BHP community. I am getting regular feedback calls like --- after initial inquiry, signing the purchase order, taking delivery, on the complaint I raised etc. etc. I even had a 20 min long feedback call from JD Power Survey team after my first service was done.

What I was trying to say was --
I have never got a call from TM or it's survey partners asking me --
which is the best feature you love the most OR
which is the feature you hate the most OR
which is the feature you feel missing which you would love us to add OR
how do you feel if we remove the feature of engaging reverse camera while on the move forward etc. etc.

Hope I am clear now?

[BlackPearl]

Saw this article today on Tata Motors continuing woes and turnaround plans -

https://www.bloombergquint.com/quart...s-woes-persist

[HighwayofLife]

This is a great time to invest in Tata Motors shares