New Delhi: Tata Motors Group, which operates as three businesses comprising commercial vehicles (CVs), domestic passenger and electric vehicles (EVs) and Jaguar Land Rover (JLR), is all geared for growth as well as segment leadership in each of their segments, Chairman Natrajan Chandrasekaran, told the company’s shareholders on Tuesday.
“The CV business is focusing on growth as well as profitability in all three platforms of HCVs, I&LCVs and small CVs. The passenger car business apart from growing the portfolio is already a leader in the EV space and is committed to maintaining the leadership by bringing the best of technology and the most delightful customer experience with new products. A large number of products are scheduled to be launched in the coming years,” Chandrasekaran said at the company’s 78th Annual General Meeting (AGM).
In the Jaguar Land Rover (JLR) business, the transition towards electric mobility, both for Jaguar and Range Rover, is well underway. New launches for both are scheduled for next year and to be continued into 2025, he said.
Tata Motors’ three core auto businesses turned profitable in the second half of FY23. Free cash flow (automotive) for the year stood at INR 7,800 crore improving from a negative INR 9,500 crore recorded in FY22. Due to this, net automotive debt for the company declined to INR 43,600 crore.
The Chairman said that the transformation of Jaguar into an all‑electric luxury brand is on track with the first new vehicle expected to be launched in 2024 and customer deliveries in 2025. It will also start taking pre‑orders for the maiden pure electric Range Rover later this year.
To become net-debt zero in FY24
Tata Motors expects the domestic business to become near net-debt zero in FY24 and JLR in FY25.
In May, ETAuto reported how the auto major’s Indian business delivered a net debt that touched its lowest in the last 15 year at INR 6,200 crore in FY23.
“In order to simplify our capital structure, and improve our financial flexibility, the American Depository Shares have been delisted from NYSE and we are in the process of completing the formalities in terms of the Depository Agreement,” Chandrasekaran said.
The Board of Tata Motors has recently approved a Scheme of Arrangement for reduction of share capital through cancellation of ‘A’ Ordinary Shares, subject to shareholder and regulatory approvals. “This is a win-win proposal for both ‘A’ Ordinary and Ordinary shareholders and I seek your support for the same when it comes up for your approval,” he told the shareholders.
Strong activity expected in manufacturing and services
According to him, all major developed nations of the world will dodge recession. In all this, India continues to remain a strong economy with a projected growth rate of about 6.4% this fiscal year. Strong activity is expected in manufacturing as well as services across sectors.
While the global geopolitical as well as economic environment is still evolving, we have moved from a low growth and high inflation environment. The world is now moving towards a less growth and a less inflation environment.
The global GDP growth is expected to be around 2.6% during 2023 and inflation is supposed to fall from 6.5% in 2022 to 4.0%. There has been divergence as the major economies including the US continue to be very resilient. In contrast, the Eurozone and China seem to have a slowdown in the growth momentum.
The Chairman said while FY23 was a very distinct year for all the three businesses, with structural shifts they are marching towards a “clear, strategic agenda”.
