Posts tagged All News
Maharashtra and Jharkhand top list on two parameters (14-09-2015)
Vedanta arm Balco puts 1k staff on notice (14-09-2015)
Alibaba founder Jack Ma set to visit India in Nov (14-09-2015)
BJP, NDA-ruled states dominate top five in ease of business (14-09-2015)
India difficult place for business; reforms needed: WB (14-09-2015)
Hard bargaining ahead for Reliance Jio, RCom (14-09-2015)
Snapdeal’s pre-approved loans for festive season (14-09-2015)
MIM will fight independently in Seemanchal: Asaduddin Owaisi (14-09-2015)
BJP placates Manjhi, unveils seat-sharing formula for Bihar (14-09-2015)
Retain hold on M&M, target Rs 1,330: Religare (14-09-2015)
We attended M&M’s TUV300 launch at the company’s Chakan plant in Pune. Aggressively priced at R6.9 lakh and positioned as a rough-and-tough vehicle, the TUV300 appears better suited for semi-urban/rural markets and is the first of two new compact SUVs expected from MM this year.
Launches augur well for M&M’s auto segment volumes, but scanty rainfall in most parts of India has cast a pall on the tractor business. We cut estimates to build in lower volumes and revise our Sept’16 TP to Rs 1,330 (from Rs 1,400). Maintain hold.
M&M launched the TUV300 in seven variants, including an AMT version with pricing in the range of Rs 6.9 lakh to Rs 9.12 lakh (ex-showroom Pune). Slated as competition for the likes of EcoSport and Duster, the TUV300 will have a 1.5-ltr diesel engine, a tank-type build, Scorpio-type chassis and an engine similar to the XUV500 and Scorpio. In all, MM has spent ~Rs 1,200 crore on R&D, designing, tooling and engines.
MM can currently manufacture ~3,300 TUV300 units a month which will be ramped up to 5,000 vehicles in a month’s time. We believe the vehicle’s rough-and-tough positioning could find more takers in rural and semi-urban markets. M&M already dominates the segment with 75%+ share in its flagship Bolero and Scorpio models.
The new launch will likely give a fillip to volumes, but could also cannibalise on Bolero sales.