- 22 Oct 2024
- ICICI Securities
WINS ORDER TO SUPPLY 1,000 BUS CHASSIS
News: According to media sources, Tata Motors has secured a significant order from the Uttar Pradesh State Road Transport Corporation (UPSRTC) to supply 1,000 units of its Tata LPO 1618 diesel bus chassis. The Tata LPO 1618 chassis is designed for intercity and long-distance travel, emphasizing passenger comfort and low total cost of ownership. This latest contract builds on a previous successful order of 1,350 bus chassis, which are currently operational within the UPSRTC fleet.
Views: As Tata Motors continues to expand its footprint in the commercial vehicle market, this partnership is poised to improve mobility solutions in Uttar Pradesh and potentially set a benchmark for similar contracts in other states. Buses segment is the solace space for the domestic CV industry which is currently witnessing a de-growth trend. With stock correcting more than 20% from its peak, it offers a good entry point for long term investment horizon given turnaround in place at JLR, substantially reduction in automotive debt on B/S and focus on healthy profitability for Indian operations.
Impact: Positive