Tata Motors (NYSE: TTM) is taking on Mahindra & Mahindra’s best selling sports utility vehicle [SUV] Scorpio. However, it's taking on the Scorpio by cutting theprice of its Safari range of SUVs by Rs. 1.7 lakhs. Currently, Scorpio enjoys an over 30% market share in the premium UV (over Rs 5 lakh) category, selling over 3,000 units a month. The overall UV segment grew by over 15% last year against a 7% growth in the passenger car segment (DNAIndia).
Buy Tata Motors. I think a due correction is over. According to Morgan Stanley, the Indian Market will look healthy if it is at the 11000 level. Right now it is well below 11000. Q4 results for Tata Motors were in line with market expectations. Valuation is at a trough. With a new product launch, the ambitious project of Rs 1 lakh car and good export potential and domestic growth, this one is a must for a portfolio as it’s a proxy for taking a position in the booming Indian economy.