Core Viewpoint - BNP Paribas acquired over 3.54 million shares of Tata Motors Limited at a price of Rs 429.3 per share through a block deal, indicating a strategic investment despite a recent decline in Tata Motors' stock price [5]. Group 1: Company Performance - Tata Motors reported a consolidated net loss of Rs 867 crore compared to a net profit of Rs 498 crore in the same period last year [4]. - The company's revenue from operations for the quarter was Rs 18,585 crore, reflecting a 6% increase from Rs 17,535 crore in the corresponding quarter of the previous financial year [4]. - The company improved its EBITDA margins to 12.2%, an increase of 150 basis points, while the EBIT margin rose to 9.8%, up by 200 basis points, driven by higher volumes and favorable realizations [4]. Group 2: Stock Performance - Tata Motors shares fell nearly 3% to settle at Rs 428.90 on the BSE, following the acquisition by BNP Paribas [5]. - The stock debuted at Rs 335 on the NSE and has since gained 28% since its listing [5]. - The stock reached a high of Rs 451.20 on January 19, 2026, and a low of Rs 306.30 on November 14, 2026 [3]. Group 3: Market Capitalization - The current market capitalization of Tata Motors is Rs 1.57 lakh crore [5].

Summary of the China Passenger Vehicle Monthly Chartbook - December 2025 Industry Overview - The report focuses on the **passenger vehicle (PV)** and **new energy vehicle (NEV)** industry in China, highlighting trends in retail and wholesale volumes, inventory levels, pricing, and battery prices [1][2][5]. Key Industry Trends - **NEV Retail Growth**: NEV retail growth decelerated to **+3% year-over-year (yoy)** in December 2025, down from **+4% yoy** in November 2025, attributed to decreasing subsidies [1][5]. - **ICE Decline**: Internal combustion engine (ICE) vehicle sales further deteriorated, showing a decline of **-31% yoy** in December, compared to **-22% yoy** in November, with higher ICE inventory levels [1][5]. - **Export Growth**: Exports of passenger vehicles (PV) and NEVs showed significant strength, with growth rates of **+47% yoy** and **+164% yoy** respectively in November, compared to **+41% yoy** and **+67% yoy** in October [1][5]. Detailed Industry Data - **December 2025 Highlights**: - PV retail sales decreased by **-14% yoy** and increased by **+2% month-over-month (mom)**. - Wholesale sales for PV decreased by **-9% yoy** and **-7% mom**. - NEV retail sales increased by **+3% yoy** and **+1% mom**, while wholesale sales increased by **+3% yoy** but decreased by **-8% mom**. - NEV retail penetration reached **59.1%**, an increase of **9.7 percentage points (pp) yoy**, while wholesale penetration was **56.0%**, up **6.8 pp yoy** [5][6]. Pricing and Inventory Trends - **Inventory**: NEV inventory remained stable, while ICE inventory levels increased [5][6]. - **Pricing**: Dealer discounts for both NEVs and ICE vehicles narrowed month-over-month, with one NEV manufacturer implementing a price cut [6]. - **Battery Prices**: Lithium cobalt oxide (LCE) battery prices increased by **+32% mom**, while lithium iron phosphate (LFP) and nickel-cobalt-manganese (NCM) battery prices remained flat [6]. Company Highlights - **BYD**: - Delivered **133,000 units** of export volume in December 2025, maintaining strong overseas expansion momentum. - Expected overseas sales volume to reach between **1.5 million to 3.5 million** units from 2026 to 2035, driven by NEV penetration and product competitiveness. - Forecasted **30% earnings compound annual growth rate (CAGR)** from 2025 to 2028, with overseas profit contribution expected to rise from **21% in 2024 to 60% by 2028** [6][7]. - **XPeng**: - Delivered **32,000 units** of domestic retail volume in December 2025, reflecting a **-5% yoy** decline but a **+2% mom** increase. - Market share remained relatively stable with a **-0.2 pp** change. - Blended transaction price increased by **5% yoy** and **4% mom**, attributed to a favorable model mix [7]. Future Outlook - Domestic PV and NEV volume growth is expected to slow down in 2026, with projections of **-2% yoy** for PV and **+11% yoy** for NEV, compared to **+4% yoy** and **+18% yoy** in 2025. - Exports are anticipated to be a bright spot for the industry, particularly for companies like BYD, which is well-positioned for overseas exposure [6][7]. Conclusion The December 2025 report indicates a challenging environment for the domestic PV market, particularly for ICE vehicles, while NEVs continue to show growth albeit at a slower pace. Export opportunities remain robust, particularly for leading companies like BYD and XPeng, which are expected to capitalize on international markets in the coming years [1][5][6][7].

Group 1: Market Performance - Retail sales of passenger vehicles in China declined by over 14% year-on-year to 2.261 million units in December 2025 from 2.635 million units in December 2024 [1] - This marks the third consecutive month of decline, following a strong rebound driven by government sales incentives and aggressive price competition among local manufacturers [2] - Over the full year, passenger vehicle retail sales rose by 3.9% to 23.774 million units from 22.892 million units in 2024, with new energy vehicles (NEVs) sales increasing by 17.6% to 12.82 million units [4] Group 2: Economic Context - China's economy is estimated to have expanded by 5% year-on-year in the fourth quarter of 2025, up from 4.8% in the third quarter, primarily due to strong manufacturing and export growth despite ongoing trade tensions with the US [3] - The Chinese government confirmed the continuation of its vehicle trade-in subsidy programme in 2026 to drive domestic consumption [5] - GlobalData forecasts a slight increase in light vehicle retail sales to 27.63 million units in 2026, up from 27.30 million units in 2025 [5]

Core Insights - Retail sales of passenger vehicles in China fell by over 8% year-on-year to 2.23 million units in November 2025, down from 2.45 million units in the same month last year, marking the second consecutive month of decline [1][2] - The market is experiencing saturation after a strong rebound last year, with sales having increased by 18% in November 2024 [2] - China's GDP growth slowed to 4.8% year-on-year in Q3 2025, influenced by weakening consumer sentiment and trade tensions with the US [2] Vehicle Sales Breakdown - Sales of internal combustion engine (ICE) vehicles decreased by 22% to 910,000 units, while new energy vehicle (NEV) sales increased by 4% to 1.32 million units, representing over 59% of total sales [3] - In the first eleven months of 2025, overall passenger vehicle retail sales rose by 6.6% to 21.622 million units, with NEV sales increasing by nearly 20% to 11.47 million units, accounting for 53% of total passenger vehicle sales [4] - ICE vehicle sales during the same period totaled 10.15 million units [4] Government Policy and Market Expectations - The Chinese government plans to reduce its NEV stimulus program by the end of the year, with expectations of a strong surge in NEV sales in December as confirmed by the CPCA [5]

Core Insights - Tata Motors has successfully listed its newly formed commercial vehicle arm, Tata Motors Commercial Vehicles Ltd (TMLCV), which opened at Rs 335 on the NSE, reflecting a 28.5% premium over its implied value of Rs 260.75, and reached Rs 345 during the day, indicating strong investor enthusiasm for the company [12]. Group 1: Corporate Restructuring - Tata Motors underwent a corporate restructuring, splitting its commercial and passenger vehicle businesses into two distinct entities: Tata Motors Commercial Vehicles Ltd (TMLCV) and Tata Motors Passenger Vehicles Ltd (TMLPV) [12]. - Shareholders of Tata Motors as of October 14, 2025, received 1 share of TMLCV for every share of Tata Motors held, without needing to take any further action [5][11]. Group 2: Cost of Acquisition - The cost of acquisition for shareholders is crucial for calculating capital gains when selling shares in the future, as the total cost of original Tata Motors shares must be split between TMLCV and TMLPV [6][10]. - For example, if an investor bought 1,000 shares of Tata Motors at Rs 400 each, the total investment of Rs 4,00,000 will be divided, with 31.15% attributed to TMLCV and 68.85% to TMLPV [10][11]. Group 3: Tax Implications - According to Indian tax rules, the share issuance through a demerger is not treated as a transfer, meaning no immediate capital gains tax is triggered [7][11]. - The date of acquisition for the new TMLCV shares will be the same as that of the original Tata Motors shares held by the investors [7].

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the Indian economy, particularly during the festive season, highlighting signs of recovery driven by domestic demand and policy support [1][9]. Core Insights and Arguments 1. **Consumption Trends**: - Services PMI decreased to 58.9 in October from 60.9 in September, influenced by festive holidays [2]. - Vehicle registrations surged approximately 25% year-on-year during the festive period, attributed to GST rate cuts and deep discounts [2]. - Retail sales during Diwali increased by 25% year-on-year to INR 6.05 trillion, with INR 5.4 trillion in goods and the remainder in services [2]. - E-commerce order volumes rose by 24% year-on-year during the festive season [2]. 2. **Investment Dynamics**: - GST collections reached INR 1.96 trillion in October, with a growth rate of 4.6% year-on-year, which adjusts to about 10% when accounting for revenue lost due to GST cuts [3]. - Manufacturing PMI improved to 59.2 in October, driven by new domestic orders [3]. - Central government capital spending was front-loaded, reaching INR 5.8 trillion, which is 51.8% of the budgeted target, growing by 40% year-on-year [3]. 3. **Export Performance**: - Goods exports remained steady at 6.7% year-on-year, but exports to the US fell by 20% month-on-month in September due to tariffs [4]. - Electronic exports grew over 50% year-on-year, while textiles and jewelry faced tariff impacts [4]. 4. **Economic Outlook**: - The improving trend in high-frequency growth indicators supports the expectation of domestic demand driving growth, with GDP growth projected at 7% year-on-year for the quarter ending September 2025 [9]. - There remains uncertainty regarding external demand, which could affect corporate confidence [9]. Additional Important Insights - **Retail and E-commerce Growth**: - The festive season saw record-breaking sales, with traditional markets contributing significantly to the total trade [78]. - Quick commerce platforms experienced a 120% year-on-year increase in order volumes, indicating a shift in consumer behavior towards online shopping [78]. - **Consumer Sentiment**: - Trader and consumer confidence indices reached decade-high levels, suggesting a positive outlook for sustained consumption growth [78]. - **Premiumization Trend**: - There is a notable shift towards premium products, with significant growth in high-end electronics and luxury goods during the festive season [78]. - **Power Demand**: - Power demand declined by 6% year-on-year in October, influenced by weather and holiday factors [3]. This summary encapsulates the key points discussed in the conference call, providing a comprehensive overview of the current state and outlook of the Indian economy during the festive season.