What's Up With Tata Motors Shares Today?

Tata Motors‘s shares extended losses for the fourth straight day on Thursday even as the company made a major announcement on Wednesday.

What Happened: The auto giant has announced a massive investment plan that will see the establishment of a new vehicle manufacturing facility in Tamil Nadu. The MoU between the Tata Group company and the Government of Tamil Nadu outlines a five-year investment strategy totalling approximately ₹9,000 crore.

This investment is anticipated to create around 5,000 jobs. The agreement was formalized with the presence of Tamil Nadu’s Chief Minister, M.K. Stalin, and other dignitaries. The partnership aims to further Tata Motors’ vision of spearheading the EV transition in India and delivering a suite of smart mobility solutions.

Tamil Nadu is home to several automobile factories of global giants including BMW, Daimler and Hyundai. Vietnamese EV maker VinFast is also building a factory in the state.

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Tata Motors’ decision to invest in Tamil Nadu comes on the heels of a series of strategic moves by the company. Earlier in March, Tata Motors’ shares soared to an all-time high following the announcement of its business demerger into two separate listed entities, focusing on commercial vehicles and passenger vehicles, respectively. This demerger, as per analysts, reflects the company’s confidence in the passenger vehicle segment’s potential for self-sustained growth.

Adding to the positive sentiment, Tata Motors announced a price hike of up to 2% on its commercial vehicles effective April 2024, to mitigate the impact of rising input costs.

Price Action: Tata Motors’ share price was down 0.33% to trade at ₹970 as the markets opened on Thursday.

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