Nomura India said on Tuesday that value perspectives won’t alter right away as a result of the combination of Tata Motors Limited’s (TTMT) passenger and commercial vehicle (CV) operations. This is because, as they said, CV, JLR, and PV are doing well in India and have promising futures. But Nomura thinks that in the middle run, it’s important to restate the concepts of corporate independence and related ones. Specifically, we think that Tata Motors would be better able to add value to its PV division in the years to come. Since 2020, their PV business has experienced tremendous growth, with market share rising by as much as 13.5 percentage points by 9MFY24. According to Nomura, “we have seen a focus on safety, attractive design, and distinctive vehicles.”We had anticipated that TTMT would have two models ranked in the top three SUVs in India,” Nomura continued. According to foreign brokerage firms, Tata Motors could try to move up to the second spot in India’s PV market by FY25–26F. Despite having larger profit margins, it has been reported that Hyundai Motor India is considering an IPO at a price of $22-28 billion. As of the now, Nomura has maintained its ₹1,057 target price recommendation for Tata Motors.With a 70% market share, Tata Motors is spearheading the country’s attempts to join the EV market. By FY26, the company intends to add 10 EV vehicles to its lineup. By 2030, they want to see 50% of sales come from EVs. “If TTMT’s plans are successful, significant value creation could occur for the company,” Nomura stated. The PV division of Tata Motors has improved, with an EBITA margin of 6.5% as opposed to 9.4% in 3FY24. Overall margins have been negatively impacted by negative EV margins (8.2% loss in Q3). Since EV product development accounts for a sizeable amount of R&D spending, we anticipate EV margin improvement over time. Because of its increased market share and profit, the CV company may witness additional re-rating in the future,” Nomura said.