In an effort to expand its product line and appeal to a wider consumer base, Tata Motors (NYSE:TTM) has confirmed plans to offer a petrol engine option for its Harrier and Safari SUVs. The company will replace the existing 2.0-litre diesel engines with a new 1.5-litre GDI petrol unit, as unveiled at Auto Expo 2023. This announcement was made by Shailesh Chandra, the Managing Director of Tata Motors.
The new petrol engine is expected to generate 170 horsepower and 280 Nm of torque. It might be paired with either a 6-speed manual or a 7-speed DCT transmission. The petrol engine's simpler design reduces manufacturing costs, thereby increasing its cost-effectiveness and broadening its appeal.
This shift is particularly significant in regions like Delhi that enforce a 10-year ban on diesel vehicles. The petrol engine offers a sustainable alternative with a lifespan of 15 years, providing consumers with a long-term solution.
The move comes as Tata Motors has been performing well in the market, with InvestingPro data showing a high return over the last year and a large price uptick over the last six months. The company's stock is also trading near its 52-week high, indicating strong investor confidence in the company's growth trajectory.
Alongside the petrol variants, Tata Motors also unveiled plans for an electric Harrier model. The electric Harrier, identifiable by a closed-off grille, is designed with practicality in mind, offering a range between 400-500 km. This makes it suitable for both long-distance journeys and daily commuting.
To boost the vehicle's versatility and extend its range further, Tata Motors is considering a 60 kWh battery pack option for the electric Harrier. According to InvestingPro Tips, Tata Motors is a prominent player in the Automobiles industry and its revenue growth has been accelerating, a fact that may be attributed to its innovative product line and strategic decisions.
InvestingPro Tips also suggest that the company's net income is expected to grow this year, which is a promising sign for potential investors. The tips, which can be found here, also indicate that the company's stock generally trades with low price volatility, making it a potentially stable investment.
However, the implementation of these new models, particularly the petrol variant, will experience a delay of over a year before hitting the market. This is despite the fact that analysts predict the company will be profitable this year, as per InvestingPro Tips.
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