Monday 29 September 2014

Spotlight: Tata Motors Ltd.

Tata Motors Limited (NYSE: TTM) is India's largest automobile company in terms of revenue and its stock price rose a spectacular 64,26% in the last year. Is there still more to come from Tata Motors? A quick look at the Indian car market tells us yes. The Indian Government invested heavily in the automobile market in India, making passenger vehicles more affordable for the common people. Moreover, disposable income in India has a growth rate of about 10% per year, thus an ongoing increase the purchase of luxury goods is also expected. These factors give India one of the highest growth rates for the car industry in the world. Moreover, Tata Motors also expands in countries such as China, which also experiences a high growth rate in the automobile market.
Besides the favourable automobile market in India and China, Tata Motors also focuses on innovations (e.g. a joint venture with Singapore Airlines), increasing revenues ever more. For these reasons Tata Motors Ltd. is expected sustain its growth rate, therefore we may call Tata Motors a stock smash.

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