Tata Motors shares inched higher in morning trade on Wednesday (June 19) after the company's subsidiary Jaguar Land Rover (JLR) and Chery signed a Letter of Intent to strengthen CJLR joint venture's product offer for electrification in China. 

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At around 9:29 a.m., shares of Tata Motors were up 0.25 per cent or Rs 1.6 at Rs 987.25 apiece on BSE. The market capitalisation of the company at around the same time stood at Rs 3,28,043.48 crore. 

"Building on their 12-year relationship and well-established joint venture, JLR and Chery have signed a Letter of Intent to strengthen CJLR’s product offer for the next era of electrification in China," the filing read. 

As per the filing, the new model of collaboration leverages fully both parties' complementary strengths – with Chery holding a leading automotive market position in China while JLR has unrivalled heritage and design strength – creating mutually beneficial prospects for the future.

Under the proposed new licensing agreement, the CJLR joint venture will pivot to produce an advanced portfolio of electric vehicles based on Chery’s EV architecture, exclusively under the Freelander name. 

Further, Freelander will become a brand independent from both Chery’s existing portfolio and JLR’s modern luxury House of Brands.

Additionally, early on Wednesday, the company released JLR's investor presentation. Following were the highlights of the presentation: 

>> JLR maintained a 10 per cent earnings before interest and tax (EBIT) margin target for FY26.

>> JLR targeted Return on capital employed (ROCE) for FY25 at over 22 per cent against 21.3 per cent in FY24.

>> The Tata Group subsidiary said that it has a capital expenditure of Rs 37,000 crore for FY25.

>> It has kept the long-term EBIT target at 15 per cent.

Tata Motors share price: Past performance 

In a year, shares of Tata Motors have given returns of over 74 per cent against Nifty50's rise of 25 per cent.

June 19 session on Dalal Street here. For all other news related to business, politics, tech and auto, visit Zeebiz.com. https://www.zeebiz.com/

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