Tata Motors skids as Chinese truck makers plan India foray

Tata Motors skids as Chinese truck makers plan India foray

(24-Feb-2011  , 16:48 Hours IST)

Meanwhile, the BSE Sensex tumbled 545.92 points, or 3%, to 17,632.41. On BSE, 8.53 lakh shares were traded in the counter as against an average daily volume of 5.81 lakh shares in the past one quarter. The stock hit a high of Rs 1141.70 and a low of Rs 1043.20 so far during the day. The stock had hit an all-time high of Rs 1381.40 on 6 December 2010 and a 52-week low of Rs 664 on 25 February 2010. The stock had outperformed the market over the past one month till 23 February 2011, falling 3.68% compared with the Sensex's 4.36% decline. The scrip had also outperformed the market in past one quarter, sliding 5.70% as against 7.69% decline in the Sensex. Tata Motors, India's largest truck maker by sales and market share, has an equity capital of Rs 633.56 crore. Face value per share is Rs 10. According to reports, China's third largest truck maker, Sinotruk has shown interest in setting up a manufacturing unit in India in order to enter the Indian auto industry. Mr Shen Xiangke, Sinotruk's spokesman was quoted by media as saying that the company is hoping for an India partner to introduce its products into local market. The company's India strategy is to establish a local assembly facility, which invites lower taxes in order to tap the buoyant local market that is ideal for its range of big trucks. Sinotruk is a Chinese, state owned enterprise which was launched in 1935. It is also known as China Heavy duty Truck Group. The Indian heavy truck market grew 65% to 2.62 lakh units in 2010, bypassing China's 40% growth of last year, as per reports. China's largest truck maker, Beiqi Foton Motor is also currently looking for a suitable place to set-up a unit in India. Another Chinese manufacturer of light trucks for agricultural use, Shandong Shifeng has already started manufacturing in India along with Hindustan Motors in Kolkata. On a consolidated basis, Tata Motors' net profit surged 272.8% to Rs 2424.38 crore on 21.6% increase in net sales to Rs 31506.33 crore in Q3 December 2010 over Q3 December 2009.