The company now has a clear focus - commercial vehicles, cars and JLR, the Tata Motors chairman said.
10 Sep 2024 | 4020 Views | By Ketan Thakkar & Hormazd Sorabjee
Tata Motors has undergone a massive transformation in the last 5-6 years and has been able to define “a different story and a different strategy” for each of the car market segments it operates in, its chairman, Natarajan Chandrasekaran, told Autocar India in an exclusive interview.
“It has been ...
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Tata Motors has undergone a massive transformation in the last 5-6 years and has been able to define “a different story and a different strategy” for each of the car market segments it operates in, its chairman, Natarajan Chandrasekaran, told Autocar India in an exclusive interview.
“It has been a very invigorating exercise. Tata Motors was quite complex with the number of things it was doing. Now, the company has a clear focus on commercial vehicles, cars and JLR (Jaguar Land Rover),” he added.
In March, Tata Motors announced a plan to split the CV and passenger vehicle businesses – including JLR – and float them as two, independent, listed entities. This is considered a milestone, given that the PV business had been making consistent losses when Chandrasekaran took over and depended on the CV business for funding its operations.
Today, the chairman pointed out, the reinvigorated PV business not only stands on its own legs, but is a trendsetter in its own right. “We have created new platforms and products, branched into EVs under the Tata Motors car business, and transformed Jaguar into a luxury portfolio [read: high-end luxury].”
JLR’s future has been redefined under the “Reimagine” strategy, under which it will be repositioned as an electric-first, modern, luxury carmaker by 2030. JLR has also committed to achieving net zero carbon emissions across its supply chain, products and operations by 2039.
The UK company has reduced its breakeven point to 3 lakh units’ annual sales, and is well on its way to managing the transition to zero-emission vehicles with multiple vehicle architectures.
The commercial vehicles business too has shown much improvement. Over the last few years, margins have risen to double digits from low-single digits. The company has been able to define a distinct portfolio of small, light and heavy commercial vehicles – with an increased focus on the non-vehicle business, such as spares, services and defence.
Under Chandrasekaran’s chairmanship, Tata Motors has become India’s third-largest carmaker and the largest electric car maker by volume. The company has lowered its debt by over 90% from over Rs 67,000 crore in 2020.
In the financial year ended March 2024, Tata Motors posted net profit of Rs 31,800 crore on record revenue of Rs 4.37 lakh crore. Its earnings before interest, depreciation, taxes and amortisation also hit an all-time high of Rs 62,800 crore.
Catch the full interview here: