The investment will be used for product and technology development in Jaguar Land Rover as well as in its passenger and commercial vehicle units.
10 May 2024 | 13792 Views | By Kiran Murali, Ketan Thakkar and Shahkar Abidi
After reporting the highest-ever profit and revenue in 2023-24, Tata Motors has lined up over USD 5.1 billion (Rs 43,000 crore) for investment in the current financial year to sustain its growth momentum.
The investment will go for product and technology development in its British luxury car brand ...
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After reporting the highest-ever profit and revenue in 2023-24, Tata Motors has lined up over USD 5.1 billion (Rs 43,000 crore) for investment in the current financial year to sustain its growth momentum.
The investment will go for product and technology development in its British luxury car brand Jaguar Land Rover as well as in its passenger and commercial vehicle units.
In 2023-24, Tata Motors had invested a total of Rs 41,200 crore (around USD 4.9 billion) – Rs 33,000 crore in Jaguar Land Rover and Rs 8,200 crore in Tata Motors.
“Coming to FY 2025, JLR will get an investment of broadly Rs 35,000 crore and Tata Motors will repeat the Rs 8,000 crore,” Tata Motors Group CFO Balaji told reporters today.
Tata Group has committed Rs 1.5 lakh crore investment in Jaguar Land Rover this decade as the luxury brand transitions its portfolio into electric.
Tata Motors has signed an MoU with the Tamil Nadu government to invest Rs 9,000 crore in the state over five years. This is for the manufacturing facility in Tamil Nadu.
Autocar Professional has exclusively reported that the automaker could produce Jaguar Land Rover electric vehicles from the proposed plant in Tamil Nadu.
Tata Passenger Electric Mobility Ltd has also licensed JLR’s Electrified Modular Architecture platform to develop premium pure electric vehicles series under the Avinya range.
The automaker, which launched the electric version of Punch early this year, is expected to launch the new Curvv and an electric variant of Harrier in this financial year. Sierra EV is likely to be launched next year.
Today, Tata Motors posted its highest-ever revenue and profit numbers for 2023-24 while its India business became debt-free. The company is on track to become net automotive debt-free on a consolidated basis in the current financial year.
Going forward, the company remains cautiously optimistic about domestic demand over the full year and expects the first half to be relatively weaker.
The commercial vehicle industry volume is likely to remain flat or might see a marginal decline in the current financial, the management today analysts in a post-earnings call.
The automaker expects the volumes in the domestic passenger vehicle segment to grow in single digits this year. “As far as the current year is concerned, single-digit growth is what we are expecting. The second half is likely to be more buoyant than the first half. The demand is likely to be decent,” Balaji said.
Jaguar Land Rover, which saw its wholesale volume grow 25 percent in 2023-24 to 401,300 units, had an orderbook for 133,000 units as of March.