Mahindra & Mahindra has snatched the spot of largest automaker in India from Tata Motors in terms of market value. The news came after shares of homegrown automaker Tata Motors slumped due to slowing down demand. Shares of Tata dipped 5 percent, slashing the value of the company to 424.14 billion rupees.
On the other hand, the shares of Mahindra & Mahindra surged by 0.3 rupee to Rs 725.5 at 11.00 am in Mumbai trading. With this surge, the market capitalization of the company increased to 440.74 billion rupees ($9.6 billion).
The major contributor to this decline of market value of Tata Motors was the ongoing debt crisis in the European countries, due to which the deliveries of Jaguar vehicles declined substantially.
It is to be mentioned here that overseas sales of the Tata Motors account for 73 percent of total revenue of the company. The sales of the company dipped 44 percent during current year. On the other hand, M&M witnessed a moderate drop of 7 percent. Most of Mahindra’s sales come from domestic market as the exports account for about 5 percent of the total sales of the company.
This is not the first time when Tata Motors’ value has dipped below Mahindra. The same happened during economical crisis in October 2008. Both Mahindra and Tata Motors are among the most diversified automakers in the country with operations in a series of segments including both passenger and commercial segments.
