Tata Motors zooms past Maruti as India's most valuable automaker
Tata Motors has surpassed Maruti Suzuki in market capitalization thanks to a 5% increase in its share prices today. This boost has crowned Tata Motors as India's most valuable automobile company with a market capitalization (m-cap) of Rs. 3.24 lakh crore. Maruti Suzuki's m-cap is Rs. 3.15 lakh crore. It is after seven years that Tata Motors's m-cap has again grown past Maruti Suzuki. It last happened on January 25, 2017.
Factors behind Tata Motors's growing m-cap
The rise in Tata Motors's shares can be linked to various factors such as robust sales growth, an enhanced product lineup, and favorable market sentiment. The company has been concentrating on broadening its footprint in the electric vehicle (EV) sector, which has attracted considerable investor interest. Tata Motors sold around 59,580 EVs in CY2023, up 86% YoY to secure a 73% market. Today, the stocks of Tata Motors closed at Rs. 864.90, nearly 3% higher than yesterday.
Business strategies of Maruti Suzuki and Tata Motors
The stocks of Tata Motors have surged over 35% during last three months, while Maruti's shares have declined 4%. The business strategies of the two brands are changing. Maruti's sales of hatchbacks, such as Alto and Baleno, have decreased by 29%. Tata Motors, on the other hand, reported an 8% growth in passenger vehicles sales. Maruti Suzuki is known for compact cars but has emerged as a strong contender in SUV market, doubling its market share to 20% in 2023.
