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EV car race: Will it be a Tesla vs Tata Motors battle on Indian roads?

March 27, 2024 - 10:23am
India's new policy for electric vehicles, aimed at inviting the likes of Tesla to start manufacturing in India, ensures that the king of Indian EVs and the king of American EVs drive in separate lanes but Tata Motors and Tesla may race against each other in the luxury car segment.Posing competition risk to a few of the upcoming models of M&M and Tata Motors at the upper end of the SUV market, the policy allows 8,000 units of electric vehicles above $35,000 (Rs 29 lakh) to be imported annually at lower duty of 15% vs 70-100% currently for 5 years against an investment of $500 million for local manufacturing.The import of EVs below $35,000 would continue to attract import duty in excess of 70%, thereby protecting Indian OEMs operating in that price point."The government's emphasis and ambitious plans on the EV front would attract global EV players like Tesla, which would surely invite competition for the likes of market leader Tata Motors in the premium EV space. TaMo has big plans to electrify its existing premium models and bring in new EV models in the premium space. However, the global EV leader Tesla can spoil their party considering their experience, expertise and EV know-how and scale of operations," Ashwin Patil, Senior Research Analyst at LKP Securities, told ET Markets.Estimates done by Nomura show that Tesla's starting on-road price in India for Model 3 (RWD) could be around Rs 51 lakh and go up to Rs 1.2 crore for Model S Plaid.At these price points, Tesla will largely compete with luxury car OEMs in India as it does globally. "We believe since the volumes will be limited to 8k units, Tesla may want to focus on promoting higher-end models to take maximum advantage of duty benefits," Nomura's auto analysts Kapil Singh and Siddhartha Bera said.Considering that India sold 42,000 luxury cars in 2023, the plan to import a maximum of 8,000 premium EVs per annum at a concessional rate will lead to a market penetration of about 20%.Homegrown Tata Motors dominates India’s EV market with its Tiago, Nexon, Tigor and Punch models, followed by MG Motor India, and Mahindra & Mahindra.M&M plans to launch five all-electric SUVs in India based on its new, purpose-built electric platform, INGLO, starting in December 2024."With incentives like a 5% GST rate and road tax exemptions, EV penetration in the luxury segment reached 4% in 2023. Tata Motors leads India's EV market with a 72% share, while Tesla dominates the US market with 55%, but Tata Motors prioritizes segment growth over market share dominance," said Dr Nishant Srivastava, CEO, Torus Private Wealth.Tatas control over 70% of EV market in IndiaTata Motors, with a more than 70% share of the EV market, plans to expand its portfolio in the category by rolling out the Harrier EV and Curvv EV models over the next few months. EVs already account for 14-15% of the company’s sales, which it aims to increase to 25% by 2027 and 50% by the end of the decade.Also read | Tata Motors to demerge business into 2 listed entitiesTatas had recently reduced the prices of Nexon by up to Rs. 1.2 Lakh. Tiago's base model now starts at Rs 7.99 Lakh following a price cut of up to Rs 70,000.Nomura analysts Indian OEMs have built strong competencies over the years and have demonstrated market share gains across segments vs global competition."One of the reasons for their success has been their ability to understand consumer trends and adapt faster with lower development costs. They have also shown more commitment to electrification in India in their model cycles than the global OEMs, so far," it said.Analysts believe that every player has a chance to establish itself in the fast-growing and attractive EV domestic market, which means that the market share loss of TaMo should be limited.EV penetration in India remains low (2.3% of all passenger vehicles sold) due to consumer concerns over affordability, range anxiety and inadequate charging infrastructure.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Categories: Business News

Maha ATS chief Sadanand Date appointed NIA DG

March 27, 2024 - 10:23am
Categories: Business News

Hot Stocks: Brokerage view on RIL, Coal India, MGL and ABB India

March 27, 2024 - 9:39am
Brokerage house Goldman Sachs maintained a buy rating on Reliance Industries (RIL), while Citigroup recommended a neutral rating on Coal India and upgraded MGL to neutral. UBS maintained a buy rating on ABB India.We have collated a list of recommendations from top brokerage firms from ETNow and other sources:Goldman Sachs on RIL: Buy | Target: Rs 3400Goldman Sachs maintained a buy rating on RIL but raised the target price to Rs 3,400 from Rs 2,925 earlier. The global investment bank sees a 17% EBITDA CAGR over FY24-27. Capex peaking in longer gestation capex businesses.New business returns are likely to be higher, and capex to EBITDA turn is faster. Returns inflection has been a key driver for RIL shares outperformance.The risk-to-reward ratio is still favorable, and the catalyst pipeline is much stronger ahead.Citigroup on Coal India: Neutral | Target: Rs 430Citigroup maintained a neutral rating on Coal India with a target price of Rs 430.The global investment bank expects disappointing e-auction price trends in Q4. Every Rs 100 per tonne change in e-auction prices impacts EPS by ~2%.Citigroup on MGL: Neutral | Target: Rs 1405Citigroup upgraded MGL to neutral from sell earlier with a target price of Rs 1,405. The management is optimistic about volume & margin outlook.UBS on ABB India: Buy | Target: Rs 7,550UBS maintained a buy rating on ABB India but raised the target price to Rs 7,550 from Rs 5,380 earlier.The company has the best quality electrification and mobility growth. Electrification and motion to drive growth and margins.More upside to consensus on margins despite recent upgrades. The earnings acceleration is sustainable, and there are plenty of our growth levers at play.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Categories: Business News

Vijay Kedia-backed TAC Infosec IPO opens. Check issue size, price band, GMP and other details

March 27, 2024 - 9:30am
The SME IPO of TAC Infosec opens for subscription on Wedensday, March 27 and will close on Tuesday, April 2. The company aims to raise about Rs 30 crore through the IPO and list the shares on NSE SME platform. Here are 10 key things investors need to know about the public offer before subscribing to the issue.1) About TAC InfosecTas Security is engaged in the business of providing risk-based vulnerability management and assessment solutions, cybersecurity quantification and services of penetration testing to organizations of any scale, size, and business through SaaS model.2) Industry overviewThe IT and BPM sector has become one of the most significant growth catalysts for the Indian economy, contributing significantly to the country’s GDP and public welfare. The IT industry accounted for 7.4% of India’s GDP in FY22, and it is expected to contribute 10% to India’s GDP by 2025.3) TAC Infosec IPO sizeThe IPO is entirely a fresh equity issue of 28.2 lakh shares and through the issue, the company aims to raise Rs 30 crore.4) TAC Infosec IPO price bandThe company is offering its shares at Rs 100-106 apiece, and investors can bid for 1,200 shares in 1 lot.5) TAC Infosec IPO financial performanceFor the period ended September 2023, the company clocked revenues of Rs 5.02 crore and net profit of Rs 1.94 crore.Also Read: SRM Contractors IPO opens for subscription. Check issue size, price band, GMP and other details6) Objects of the offerThe net proceeds from the public offer will be used for the acquisition of TAC Security Inc and making it a wholly-owned subsidiary, investment in human resources and product development, general corporate purposes and public issue expenses.7) Lead managers and registrarBeeline Capital Advisors is the lead manager to the issue and Skyline Financial Services is the registrar.8) Issue structureAbout 50% of the offer is reserved for QIB investors, 35% for retail investors and the rest 15% for other investors.9) Important datesThe IPO opens on March 27 and closes on March April 2. The final allotment will likely be made on March 3. The company's shares will likely get listed on April 5.10) TAC Infosec GMPThe company's shares are trading with a high GMP of Rs 80 in the unlisted market.
Categories: Business News

Ramakrishna Mission chief dies at 95

March 27, 2024 - 9:13am
Categories: Business News

NCP (SCP) meeting to be held today in Mumbai

March 27, 2024 - 7:52am
Categories: Business News

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