Nomura India, a foreign brokerage, has expressed its positive outlook on Tata Motors’ new Nexon (ICE) and EV variants pricing, deeming them attractive. They believe that the Nexon sets a benchmark in terms of technology and features and has the potential to become the top-selling SUV across all SUV categories, including the large SUV segment. Nomura India has maintained its ‘Buy’ rating for Tata Motors Ltd stock with a target price of Rs 786 per share.

The two Nexon models were unveiled on September 1st and 7th. The introductory prices for the Nexon (ICE) range from Rs 8 lakh to Rs 13 lakh.

In the case of the Nexon EV, the price ranges from Rs 14.7 lakh to Rs 17.8 lakh. The entry variant’s price has increased by Rs 25,000 or 1.7 percent, which Nomura India believes consumers will still find attractive due to the substantial upgrade.

Tata Motors is reportedly planning to establish dedicated retail showrooms for electric vehicles under the brand name Tata.ev. This move aims to offer customers a unique experience and generate sufficient volumes to support channel partners effectively.

Nomura India states, “The Nexon is currently the market leader in the compact SUV segment, and we believe it will continue to compete with popular compact SUVs such as Maruti’s Brezza, Hyundai India’s Venue, Nissan India’s Magnite, Kia India’s Sonet, and M&M’s XUV300. Given Nexon’s superior technology and features, we believe it has the potential to become the highest-selling SUV in the entire SUV category.”

They further elaborate, “Overall, for Tata Motors, we expect PV volumes of 51,000/53,000 per month in 2HFY24/FY25F, which can have upsides on the success of Nexon.

On a different note, Motilal Oswal Securities has set a target of Rs 750 for Tata Motors’ stock. This domestic brokerage is optimistic about Tata Motors’ prospects, citing a healthy recovery as supply-side issues ease for Jaguar Land Rover (JLR), improved product mix, reduced discounts, and operating leverage.

“Tata Motors’ India CV business is on a strong footing and is primed for a strong cyclical recovery in both M&HCVs (6 percent CAGR over FY23-25E) and LCVs (4 percent CAGR). Its refreshed product portfolio will enable a sustained recovery in its PV business (11 percent CAGR), aiding market share gains,” they stated.

As of Friday, Tata Motors’ shares closed 1.54 percent higher at Rs.634.25 on the NSE.