[AutoNoob]

Tata is making more money per car than Maruti for the 1st time in a decade

Positive signs for Indian automotive scene.

Source : Economic Times

[gururajrv]

I’ve said it more than once and I’m going to say it again - this decade will notice domination across segments by Tata & even Mahindra! Maruti has lost the battle as their strategy clearly indicates lighter, frugal cars while Tata, Mahindra are providing safer, performance & frugal oriented cars. MSIL has a lot of catching upto do even if they start today, might take another 2-3 years before they earn what they’ve lost!

They’re stubborn with their decade old approach

- make ads proving their ability to deliver frugal cars but not safer ones.
- discarding even without trying diesel route was a major drawback. Tata & Mahindra despite having relatively lower sales compared to MSIL were battle-ready!
- aging lineup with no facelifts unlike tata and Mahindra who are quite active revising their lineups
- nothing to look forward for from maruti stable or lack of vision costing them majorly now
- revision not only in terms of lineup, but the management leading MSIL needs a major shakeup

Nevertheless, my next car won’t be a Maruti for sure. I might look towards Tata or Mahindra.

[quattroa4]

TATA is one manufacturer that has weather the storm better then anybody in the automotive world in India , in fact where most of the manufacturers were showing negative trends , TATA is the only one on an upward trajectory .Their gamble / work has paid off and they are in the pink of their health now .

[gkveda]

My only wish is, in the rush of saving more than Maruti per car, Tata does not further compromise on the quality of their cars and individual parts.

Already they are renowned for their quality of products and services. Now in my opinion, the quality and reliability takes further hit.

If they are able to achieve more margins with out compromise, then it will be great achievement and would like to know more on how were they able to achieve.

[Kosfactor]

I`m not sure what to make of this then.

Tata Motors loss widens to 4415 CR (Nov 1 2021).

[AutoNoob]

When we look this news in conjunction with the following news from last year, it shows the efforts put in by Tata Motors.

This is going to be good for customers. That's what I really care about.

Tata Motors plans to cut consolidated debt to zero in three years

Source : Business Insider
Date : 25-Aug-2020

“Currently the TML group has a net automotive debt of ₹48,000 crore, and currently we are deleveraging this business substantially. The target is to bring it to near zero debt levels in the next three years. Towards this, the company has already taken steps. This includes making the company free cash flow positive by FY22,” Chandrasekaran said.

[Geta]

Originally Posted by Kosfactor

I`m not sure what to make of this then.

Tata Motors loss widens to 4415 CR (Nov 1 2021).

Attachment 2227421

This is because of poor performance of JLR (which generally accounts for upto 75% of Tata motors revenue) in Q2 of FY22.
TaMo is doing very well and generating profits in the Indian market, without doubt.

[GJ01]

Originally Posted by Kosfactor

I`m not sure what to make of this then.

Both the articles are correct. The article that you refer to is for Tata Motors as a whole - Tata Motors (India) Passenger Vehicles (PV) and the JLR brand together. The article quoted in the OP specifically calls out Tata Motors PV division.
Trust that clarifies.

[anjan_c2007]

- With the Indica V2 in 2005 Tata said "More Car Per Car", but Tata Motors was going nowhere !

https://www.youtube.com/watch?v=oEF5...lkaAdvertising

- With the changed times for Tata Motors, its now "More Money Per Car".

- And with the changed times, Tata Motors is bailing out JLR with the accumulated losses of the latter, as a result of JLR's tardy sales earlier owing to the pandemic and now due to the semiconductor shortage.

- And with the changed times, Tata Motors has emerged as the # 3 car maker in India !

[CARDEEP]

That's the beauty of common platforms & decent growth in terms of numbers. Tata is definitely reaping benefits of strategy pioneered by Porsche.

What is helping is the fact that Tata cars are not just heavy metal now, but also safe as per applicable standards. Hopefully they handle service accessibility & quality to make the ownership a complete package & it can sustain the type of numbers that it has achieved in last month.

Good domestic numbers on month on month basis will definitely help the company to ease forex pressure & hold on to halo brands (ownership of which is beneficial in long run IMO).

Still a long way to go to wipe off JLR losses, though te prospects look bright.

[Vishal.R]

Main reason why Maruti makes less money could be royalty they pay to their parent Suzuki for "most advanced" technology which they supply to Maruti.

"Maruti" here means MSIL which is partially owned by Indian minority shareholders as well along with 56% by Suzuki.

[amay1283]

Great News! This may also be a reflection of changing consumer mindset to go for more safer cars and not just look at fuel efficiency (which is also important)

[PrasannaDhana]

Agreed.

But it isn't magic, Tata motors make good cars when compared to the past.

Let's compare the improvement in Maruti cars vs the improvement in Tata cars in the last 5 years. Tata deserves this.

As an owner of Tatas and Marutis, I wish Tata reaches the QC efficiency of Maruti. When that happens, I wouldn't be surprised if Tata overtakes Hyundai (very reasonable goal) or even Maruti in the market share.

[JoshMachine]

Originally Posted by AutoNoob

Tata is making more money per car than Maruti for the 1st time in a decade

Could be a scenario of different operating volumes also for both the manufacturers, since Tata witnessed a specific sales surge in that quarter vis-a-vis Maruti. Hence, Tata was presumably able to have a better metric.

We have to also note that these are just QoQ numbers and may change again in favor of Maruti, once the overall chip supplies improve over the year.

[AutoNoob]

Originally Posted by JoshMachine

Could be a scenario of different operating volumes also for both the manufacturers, since Tata witnessed a specific sales surge in that quarter vis-a-vis Maruti. Hence, Tata was presumably able to have a better metric.

We have to also note that these are just QoQ numbers and may change again in favor of Maruti, once the overall chip supplies improve over the year.

True. I do understand that these are accounting numbers and there are many contributing parameters. However, the trend over last few years is definitely encouraging.

As a customer, I am liking the way it's heading. India has been a duopoly car market for some time. Now, Tata is making in-roads and hopefully Mahindra also finds strong footing in sub-10L segment. That said, these are only early signs and still lot of work is needed at these two (particularly QC and ASS).