Tata Motors overtakes Maruti Suzuki as the most valuable automaker in India

Tata Motors has become the top-valued automobile company in India, considering both the parent company’s market capitalization and its DVR shares.

As of Tuesday’s closing, the total market value of Tata Motors and its DVR reached ₹3.16 lakh crore, surpassing Maruti Suzuki’s ₹3.13 lakh crore.

Tata Motors’ shares surged over 35% in the past three months, reaching a new record high on Tuesday, while Maruti’s shares declined by 4% during the same period.

As the DVR shares are set to be canceled, the consolidation of market capitalization was achieved through the following process: Tata Motors DVR has 50.85 crore outstanding shares.

Shareholders holding Tata Motors DVR will receive 7 shares of Tata Motors for every 10 DVRs they own. By dividing the 50.85 crore outstanding shares by 10, multiplying the result by 7, and then by Tata Motors’ closing price, the total value amounts to ₹30,585 crore. Adding this to Tata Motors’ existing market capitalization results in a total of ₹3.16 lakh crore.

Tata Motors plans to roll out four additional affordable electric vehicles by the end of next year. The Curvv EV is expected to debut soon, followed by the Harrier EV later this year. The Sierra EV and Altroz EV are scheduled for release in 2025.

Shailesh Chandra, MD of Tata Passenger Electric Mobility, shared insights into the brand’s electric vehicle lineup and the recently introduced Acti.EV architecture during the Punch EV launch. He mentioned that all upcoming electric passenger vehicles will incorporate this advanced architecture.

Surprisingly, Maruti’s sales of small cars like the Alto and Baleno dropped by 29%, partly due to the company’s decision to moderate wholesales. In contrast, Tata Motors saw an 8% growth in domestic PV sales but did not specify growth rates for different car categories.

Additionally, Maruti Suzuki, traditionally known for compact cars, has become a strong player in the SUV market, doubling its market share to 20% in 2023. With a 24% year-on-year growth in domestic SUV sales, Maruti Suzuki is set to launch its first electric SUV based on the eVX in late 2024.

The strategic introduction of four SUVs in the last two years, including the Fronx, Jimny, and Grand Vitara, has significantly bolstered its domestic SUV sales.

While Maruti Suzuki is scheduled to report its December quarter results on Wednesday, January 31, Tata Motors will release its results later this week on February 2.

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