Tata Motors could emerge a $30 billion company by 2017: Goldman
31 October 2012
Tata Motors has the potential to more than double its current market capitalisation of $13.8 billion and reach a market cap of $30 billion by fiscal 2017, investment bank Goldman Sachs said in a report. The automaker also could nearly double its cash flow over the period, Goldman said.
However, the bank has suggested a broadening of its current market share through a complete makeover of its brands, including existing models such as Range Rover and Discovery in order to achieve the $30-billion market cap.
Goldman, in fact, wants the Jaguar Land Rover unit to move its existing models such as Range Rover and Discovery to a lighter and more fuel-efficient architecture to be able to expand its market.
Goldman said JLR needed to diversify into both smaller engine and lower priced vehicles, as well more premium segments.
The more important challenge for Tata Motors, however, is getting consumers to buy into the brand. ''Product road map is key to US$30 billion market cap,'' it said.
However, over the longer term, Goldman said, key challenges for Tata Motors would be brand acceptability, environmental sustainability and local business concerns.