Tata Motors' Curvv Could Address EV Portfolio Gap, Say Analysts

The launch of Tata Motors Ltd.'s Curvv EV has brokerages maintaining a positive outlook as they expect the new sports utility vehicle to potentially address the significant gap in the car maker's electric vehicle portfolio.

On Wednesday, Tata Motors unveiled the Curvv EV, a new mid-sized Sports Utility Vehicle priced between Rs 17.49 lakh and Rs 21.99 lakh. The car positions Tata Motors firmly in the mass-market coupe SUV segment, a first for the country.

Jefferies has reaffirmed its 'buy' rating on Tata Motors, setting a target price of Rs 1,330, an upside of 30% from the current levels. The brokerage highlighted the Curvv’s potential to address gap in Tata’s EV portfolio, aligning with the company’s strategy to recover and expand its market share.

The brokerage anticipates monthly sales of 3,600 units in the current financial year and 5,000 units in the next financial year, projecting an 11% compounded annual growth rate in Ebitda and 19% in earnings per share over the financial year ending March 2024 through March 2027.

Nomura also maintained a 'buy' rating on the stock, with a target price of Rs 1,303 per share, reflecting a 27% upside. The brokerage views the Curvv as a breakthrough in EV adoption, noting that it addresses key consumer concerns, such as range anxiety with its 55 kWh battery option and rapid charging capabilities.

The Curvv could capture 10-20% of the segment's market share once all variants are launched, it said. The firm is also optimistic about passenger vehicle segment growth in the second half of the ongoing financial year, buoyed by favorable monsoon conditions and the festive season.

The Tata Curvv EV is built on the new Atlas modular platform, designed to accommodate both electric and internal combustion engine powertrains.

The SUV is powered by a 167 BHP electric motor, offering acceleration from 0 to 100 km/h in just 8.6 seconds. With a choice between a 45 kWh and a 55 kWh battery pack, the Curvv promises a high range and fast-charging capabilities, gaining 150 km of range in just 15 minutes.

The Curvv EV also boasts a host of premium features, including a 500-litre trunk, advanced safety features like six airbags, 20 Level 2 ADAS functions, and a 360-degree camera system.

The interior is equipped with high-quality materials, customisable mood lighting, and a panoramic sunroof, complemented by a suite of high-tech features such as a voice-assisted infotainment system, nine JBL speakers, and wireless mobile charging.

Shares of the company rose as much as 2.21%, the highest level since July 30. They pared gains to trade 1.78% higher at Rs 1,043 apiece, as of 09:35 a.m., compared to a 0.14 % decline in the NSE Nifty 50.

The stock has risen 22.99% in the last 12 months and 3.27% year-to-date. Total traded volume so far in the day stood at 0.22 times its 30-day average. The relative strength index was at 49.4.

Out of 34 analysts tracking the company, 23 maintain a 'buy' rating, seven recommend a 'hold' and five suggest 'sell', according to Bloomberg data.