Despite ongoing global geopolitical tensions and military conflicts, Tata Motors is gearing up for an exciting journey ahead, according to Chairman N Chandrasekharan.
At the 79th Annual General Meeting, he highlighted the company's strong performance and commitment to embracing structural shifts such as the energy transition to green mobility, supply chain resiliency, and digital acceleration with AI and machine learning. 'We have an exciting journey ahead of us and the management teams are very committed and focused towards accelerating our growth journey.”
In FY24, Tata Motors delivered impressive results across its three business segments—Commercial Vehicles (CV), Passenger Vehicles (PV), and Jaguar Land Rover (JLR). Total vehicle sales increased by 7.4% year-on-year, reaching over 13.8 lakh units, while revenues soared to INR 437.9K crore. The company achieved an EBITDA of INR 62.8K crore and a net profit of INR 31.8K crore, a significant increase from the previous year. Tata Motors' India automotive business is now debt-free, with JLR expected to follow suit by FY25.
PV Business
The PV and Electric Vehicle (EV) business in India marked its third consecutive year of record performance, with sales exceeding 5.7 lakh units. The focus on emission-friendly technologies has boosted the penetration of CNG and electric vehicles to 29% of the overall portfolio. The company leads the EV market with a 70%+ share. Notably, the Sanand production facility was operational within a year of acquisition. Safety remains a priority, with several models receiving 5-star safety ratings from Bharat NCAP.
CV Business
The CV business recorded annual revenues of INR 78,791 crore, an 11.3% increase from FY23, and PBT of INR 6102 crore, nearly doubling last year's figure. The company is expanding its non-vehicular business, including spares and services, smart mobility solutions, and digital offerings.
Jaguar Land Rover Business
After overcoming supply constraints, JLR re-established its financial stability in FY24, achieving its highest-ever annual revenues of £29 billion, a 27% increase year-on-year. Its new house of brands approach and refreshed corporate identity underpin its vision of modern luxury, with significant product launches, including the first electric Range Rover and future EVs.
Looking Ahead
While all three businesses will continue to focus on improving their financial strength and enhancing customer experience, their strategies will become increasingly differentiated, sharpened, and refined in line with their market positions, brand strengths, and growth aspirations.
The PV business will prioritise market-leading growth, technological advancements, and brand leadership. The business will continue to invest in products, platforms, electrical and electronic architectures, and vehicle software to stay competitive.
The EV business will focus on increasing market penetration through multiple product launches, market development initiatives, charging network enhancements, and the introduction of aspirational product features.
The CV business will aim to drive technology and brand leadership to achieve consistent, value-accretive growth in the coming years. In addition to vehicle sales, it will also concentrate on vehicle-related businesses such as spares, digital solutions, and smart mobility solutions to mitigate the volatility of vehicle sales.
JLR will intensify its efforts to become a leading luxury OEM, focusing on enhancing customer satisfaction and continuing to invest in products and technologies. The company will maintain its investments in products, platforms, electrical and electronic architectures, and vehicle software to provide a world-class customer experience to its discerning clientele.
Outlook
In FY24, Tata Motors streamlined its capital structure by delisting its American Depositary Shares, diluting its stake in Tata Technologies Ltd through a successful IPO, and announcing the merger of Tata Motors Finance with Tata Capital Ltd. The company also planned to demerge into two separate entities, one for Commercial Vehicles and the other for Passenger Vehicles, including PV, EV, and JLR, to enhance agility and accountability.
As Tata Motors continues to refine its strategies, it aims for market-leading growth, technological innovation, and brand leadership across all segments. The company also aims to deepening EV penetration, enhancing its product portfolio, and investing in advanced technologies to deliver superior customer experiences and sustainable growth.
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