Why I Think Tata Motors and Land Rover Are Too Big to Ignore – My Thoughts
If you watch the news or listen to market experts on TV, you will think Tata Motors is in big trouble. They keep talking about bad quarterly results, cash burn, and how Jaguar Land Rover is pulling the company down. Many of them are telling people to sell the stock before it falls more. This creates a lot of fear in the market.
But I want to share what I think. I feel this story is only about short term problems. When you look at the bigger picture, Tata Motors looks much stronger than people think. I believe the company has very good things going for it, and in the next few years, it can do very well. That is why I am not selling my shares.
First, let us talk about Jaguar Land Rover. People talk about Jaguar and Land Rover as if they are the same, but in reality, they are in different situations. When I look at what is happening on the roads, I do not see a dying brand. I see Land Rover doing very well. There is strong demand for their cars. If you want to buy a Defender or a Range Rover, you often have to wait because the waiting lists are long. This means people still really want these cars.
Land Rover is popular not only in the UK, but also in big markets like China, the US, and India. They keep bringing new updates and new models that people like. Even if Jaguar is going through a slow change towards electric cars, Land Rover is still doing the heavy work. It is bringing in money and keeping the brand strong. In my view, Land Rover is a brand that will not disappear easily because people truly like it.
Now let me come to the most important point, the link between Land Rover and Tata Motors passenger cars in India. This is the main reason why I feel positive.
Tata Motors is not only owning Land Rover, they are also learning from them. Tata is using their global technology and experience. Tata is bringing electric car platforms and ideas from Land Rover to India. This means future cars like the Tata Avinya and the new Tata Sierra will be built on strong and modern platforms, similar to what Land Rover uses.
This is a big thing. Tata is getting access to world level technology for its own cars. In India, Tata cars are already becoming more popular. You can see many Harrier and Safari cars on the road. When Tata launches Avinya and Sierra EV with this kind of technology inside, they can do very well in the market. This kind of technology sharing gives Tata an advantage that not many Indian car companies have.
So why are people on TV only talking about cash burn and telling everyone to sell. I feel this is how markets work. When there is fear, big investors get a chance to buy cheap. They know about the long term plans, the new technology, and the strength of Land Rover. If the stock price falls a lot, do you really think big funds will stay away. No. They will buy because they know the value is good at lower prices.
The money that people call cash burn is not just being wasted. It is being used for research, new factories, and new electric platforms. This is part of the change the company is going through. Once new cars are launched, these costs will start to make more sense. The company is still selling cars, and people are still buying them.
In the end, I trust what I see around me more than what I hear on TV. The waiting lists are real. The plans for Avinya and Sierra are real. The love for the brand is real. Tata Motors is trying to build something for the future. Yes, there are short term problems, but the long term picture looks good to me. That is why I am holding my shares and staying patient. A company with this kind of support and plans cannot be ignored for long.
