Tata group hopes from auto business
Tata Group expects its automotive business, including passenger and commercial vehicles, to grow to US$100 billion over the next five years, with a capital expenditure target of Rs 40,000 crore in the domestic business and about Rs 20 billion (British) pounds for JLR, Tata Group Chairman N Chandrasekaran said on Wednesday.
Answering questions from shareholders at the 81st Annual General Meeting of Tata Motors Passenger Vehicles held virtually, he said the target for EV market share would be 40-45 per cent. Currently it is around 42 percent.
Chandrasekaran said Tata Motors Passenger Vehicles Ltd will remain focused on launching aspirational products for its existing consumers as it aims to achieve 10x volume growth and 20 per cent market share between FY20 and FY30.
“I would like to say that both the companies (Tata Motors Passenger Vehicles Limited and Tata Motors Limited) have got very ambitious targets. Over the next five years (by FY 2031), Tata Motors Passenger Vehicles Company, including Jaguar Land Rover (JLR), will target sales of US$ 60 billion, of which JLR will contribute about US$ 45-50 billion and Tata Motors, the domestic business, will contribute about US$ 15 billion. will contribute,” Chandrasekaran, who is also the chairman of TMPV, said.
He said the combined profit would be more than US$5 billion, with the CV business – which is targeted at US$40 billion – the automotive business between the two companies would be worth US$100 billion.
In terms of capital expenditure, Tata Motors’ domestic business has set a capex target of Rs 40,000 crore for the next five years, while JLR has set a target of around Rs 20 billion (British) pounds (or Rs 12,763 crore).
Outlining the business plans of the passenger vehicle company, he said, looking at the next five years, the company has a big ambition. “Fundamentally, in the decade between FY20 and FY30, the company wants to achieve 10-fold growth in volumes with an ambition of over 1.2 million vehicles and a market share of 20 per cent from the current 14.2 per cent,” he said.
Saying that overall, the company is on a growth path, Chandrasekaran said TMPV will continue to focus on launching products that are aspirational for today’s consumer.
The company has entered FY27 with confidence, with a strong pipeline of new products and powertrains across both Tata Motors passenger vehicles as well as Jaguar Land Rover, Chandrasekaran said, adding that JLR has a series of launches lined up in the second half of this year.
He said the company is making significant investments in digital technologies, especially AI, across the value chain and the collaboration between Tata Motors Passenger Vehicles and JLR is strengthening, leveraging complementary capabilities in manufacturing, technology and people.
Chandrasekaran said that the successful start of operations of TML PV and JLR facility in Tamil Nadu is also a very important milestone.
TMPV and its subsidiary Jaguar Land Rover Automotive commenced operations at their new facility at Panapakkam in Ranipet district of Tamil Nadu in February this year.
The facility represents the first phase of a greenfield plant that will manufacture next-generation vehicles, including electric vehicles from both TMPV and JLR brands.
Chandrasekaran said separating the passenger vehicles and commercial vehicles businesses and creating them into two separate listed entities is a “very decisive step” and a structural milestone in the company’s journey to build a differentiated, future-ready, world-class personal mobility enterprise not only with a strong presence in India but also with a global footprint through Tata Motors as well as JLR.
“Our ambition is to build a trusted, aspirational, globally competitive mobility brand that connects meaningfully with all customers of the future,” he said.
He said FY2026 has started off as a good solid year with expectations of stable global growth, softening inflation and easing financial conditions.
However, supply chain issues at the end of the fiscal year and geopolitical tensions in West Asia raised concerns about inflationary pressures and slower growth, Chandrasekaran said, adding, “Also, we had a cyber incident at JLR that led to a temporary halt in production for about a few months.” As a result, the company’s revenue fell 21 percent from the previous year and it delivered about 23 billion British pounds, he said.
Noting that in all these dynamic environments, flexibility and execution become extremely important, he said the company has performed very strongly in India.
He said the company is on a transformation journey, especially post-Covid, driving strong turnaround in terms of EBITDA and free cash flow.
Chandrasekaran said, “What used to be a cash burn of Rs 4,000 crore has now become a positive cash flow of Rs 2,000 crore and EBITDA has jumped by over Rs 5,000 crore. Equally important are the product launches, which have increased the company’s market share from 4.2 per cent to 14.2 per cent this year.”
Chandrasekaran said the overall performance reflects temporary disruption at JLR, while the return to normal production maintains demand momentum in the Indian PV business, providing strong confidence going forward.
