Nomura’s bullish stance centers around Tata Motors’ aggressive push into the EV segment, most notably with the upcoming Harrier EV—an all-electric variant of its popular SUV. Tata Motors, India’s third-largest carmaker, has signaled the Harrier EV launch as one of its biggest steps yet toward electrification in India, the world’s fastest-growing automotive market.
“Tata Motors’ strong EV pipeline—led by the upcoming Harrier EV—should help it defend its dominant position in India’s EV segment,” said a recent Nomura report to clients. “We expect the Harrier EV to expand the addressable market, bolster the company’s pricing power, and improve margins in the medium term.
Nomura Upgrades Target, Bullish on Tata’s Fundamentals
Nomura has revised its target price for Tata Motors to ₹1,120 per share, implying a 13.5% upside from its closing price on June 6, 2024. The brokerage cited both cyclical and structural reasons for its positive outlook:
- Continued market share gains for Tata’s passenger EV portfolio (currently commanding over 70% of India’s EV market)
- Upcoming product launches, including the Nexon EV facelift and affordable EV models
- Recovery in Jaguar Land Rover (JLR) global sales, particularly in China and the UK
- Margin improvements due to easing input costs and operational synergies
“Acceleration in India’s EV adoption, coupled with JLR’s turnaround, should drive Tata Motors’ multi-year growth,” Nomura added.
Tata Motors’ EV Strategy and Market Response
Tata Motors has made aggressive investments in EV technology and infrastructure, launching models such as the Nexon EV, Tiago EV, and Tigor EV in recent years. The Harrier EV, previewed at the 2024 Auto Expo, is expected to appeal to urban and premium buyers seeking longer range, advanced safety, and cutting-edge technology.
Industry experts note that Tata has outpaced traditional rivals like Mahindra and Maruti Suzuki in the EV transition. As per the Society of Indian Automobile Manufacturers (SIAM), Tata sold over 80,000 EVs in FY2023-24—a 65% increase year-on-year.
“The Harrier EV will address the aspirational SUV segment, where demand for green mobility is rapidly rising,” said Shailesh Chandra, Managing Director of Tata Passenger Electric Mobility, at a recent investor call.
Valuation and Risks: Market Perspectives
Market analysts are generally positive on Tata Motors, with multiple brokerages raising their price targets post Harrier EV teasers. Secondary keywords such as “Tata Motors share price forecast,” “EV market in India,” and “Harrier EV launch” have trended across financial news outlets and social media.
However, Nomura and others caution investors on a few risks:
- Competitive pressure as global OEMs ramp up EV launches in India
- Raw material price volatility in the lithium-ion battery supply chain
- Global EV demand slowdown amid macroeconomic uncertainties
Still, as Saurabh Mehta, auto sector analyst at Motilal Oswal, notes: “Tata has built first-mover advantage in India, and the Harrier’s scaling up could propel its next phase of growth.”
Tata Motors’ Broader EV Ecosystem
Beyond vehicle launches, Tata Motors is collaborating with Tata Power and Tata Chemicals to develop charging infrastructure and localize EV battery cell production. These efforts could lower costs, ease supply chain bottlenecks, and future-proof its EV ambitions.
Tata’s EV business is also attracting interest from global investors—including TPG Rise Climate, which invested $1 billion in Tata’s EV division in 2023.
“Creating a complete EV ecosystem gives Tata staying power and influences consumer trust,” said Shweta Lalwani, EV industry consultant with CRISIL.
Outlook: What’s Next for Tata Motors and the Indian Auto Market
With government policies favoring EV adoption—such as continued FAME-II subsidies and GST reductions on EVs—analysts believe Tata Motors stands to benefit from policy tailwinds and shifting consumer sentiment.
Nomura predicts that EVs could account for over 25% of Tata’s passenger vehicle sales by 2027, outpacing industry trends and justifying higher valuations.
