Tata Motors, one of India’s leading automotive companies, is focusing on growth, debt elimination, and electric vehicles (EVs) to achieve profitability. During the company’s 78th Annual General Meeting, Chairman N Chandrasekaran addressed shareholders virtually and expressed the commitment to deliver consistent growth, profitability, and free cash flows.
Chandrasekaran highlighted that Tata Motors is dedicated to accelerating its transformation. The company aims to achieve its goal of zero debt for the domestic business within the current fiscal year. As for its subsidiary Jaguar Land Rover (JLR), zero debt is expected to be achieved by the end of 2024.
The company’s three main businesses – commercial vehicles, passenger vehicles, and electric vehicles – along with Jaguar Land Rover are all positioned for growth and leadership within their respective segments. Tata Motors’ commercial vehicle business is focused on growth and profitability across all three platforms. Additionally, the passenger car business is not only expanding its portfolio but also leading the electric vehicles market. The company is committed to maintaining its leadership position by bringing the best of technology through new product launches in the coming years.
Regarding Jaguar Land Rover, Chandrasekaran mentioned that the transition towards electric mobility is well underway. Both Jaguar and Range Rover have plans for new electric vehicle launches in the latter part of 2022 and throughout 2025.
Chandrasekaran emphasized that Tata Motors’ commercial vehicle business is moving beyond being just an original equipment manufacturer (OEM) to becoming a holistic solution provider.
In terms of debt reduction, Chandrasekaran stated that he expects the domestic business of Tata Motors to achieve near net-zero debt by the fiscal year 2023-24, followed by JLR in the subsequent year.
While the global geopolitical and economic environment continues to evolve, Chandrasekaran noted a shift from low growth and high inflation towards less growth and less inflation worldwide. He mentioned that major economies such as the US remain resilient, while the Eurozone and China show signs of a growth slowdown. However, he added that all major developed nations are expected to avoid recession. In India, a strong economy, manufacturing, as well as services across sectors, are anticipated to experience strong activity.
Chandrasekaran acknowledged the acceleration towards major trends such as digital and artificial intelligence adoption, energy transition, and resilient supply chains in the micro scenario. These trends are being embraced by businesses and nations globally.
Tata Motors continues its journey to achieve growth, profitability, and debt elimination, while placing a strong focus on electric vehicles. Through strategic planning and innovation, the company aims to secure its position as a leader in the automotive industry.
