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Tata Motors surges on plan to increase imports of auto components from Korea

06 Dec 2012 Evaluate

Tata Motors is currently trading at Rs. 276.85, up by 1.95 points or 0.71% from its previous closing of Rs. 274.90 on the BSE.

The scrip opened at Rs. 277.00 and has touched a high and low of Rs. 279.00 and Rs. 273.65 respectively. So far 4, 27,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 320.60 on 20-Apr-2012 and a 52 week low of Rs. 167.75 on 15-Dec-2011.

Last one week high and low of the scrip stood at Rs. 283.95 and Rs. 269.30 respectively. The current market cap of the company is Rs. 74,960 crore.

The promoters holding in the company stood at 34.74% while Institutions and Non-Institutions held 40.38% and 8.47% respectively.

Tata Motors, country’s largest vehicle maker is planning to import more auto components from Korea that are both good in quality and more cost-effective than those imported from the US, Europe and Japan. The entity expects its Korean imports to be valued at $85 million during FY13, against $70 million during FY12. These parts are around 10-15% cheaper than Japanese components of the same quality.

To offset the rising labor cost in Korea, the Indian auto major is also actively encouraging Korean auto parts makers to set up base in India, either independently or through joint venture with local partners.  

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