As part of its next phase of growth, the passenger vehicle business of Tata Motors will focus on market beating growth, improving Ebitda, positive free cash flows, enhanced customer experience, technology, and brand leadership.
In a message to the company’s shareholders in annual report for 2023-24, Tata Group chairman N Chandrasekaran, said that the competitive intensity in this portfolio will remain high and the business will continue to invest in products, platforms, electrical & electronic architectures, and vehicle software to remain competitive.
The business will also focus on significantly improving customer experience and enhancing product quality. The electric vehicle (EV) business will focus on driving up penetration through multiple product launches, focus on market development, charging network enhancements and continuing to introduce aspirational product features, Chandrasekaran said.
Apart from vehicular sales, the business will also focus on vehicle parc linked businesses like spares, digital and smart mobility solutions which will help reduce the volatility of the vehicle sales business, he added.
This should help drive consistent value accretive growth in the coming years, Chandrasekaran said.
On JLR, he stated that the brand will continue to double down on its journey to become a premium luxury OEM, deliver strong revenue growth, improve profitability further, drive positive free cash flows and continue to invest in products and technologies.
“There is an exciting range of products lined up to be launched over the next three years that needs to be delivered successfully. The first electric Range Rover launches later this year, and there are further EVs lined up in the coming years including the all-electric Jaguar,” he said.
Chandrasekaran said that to enable execution of these well differentiated strategies and to further empower each business to pursue it purposefully, the Tata Motors’ board has proposed the demerger of the company into two separate listed companies.
The commercial vehicle business and its related investments in one entity and the passenger vehicle businesses including PV, EV, JLR and its related investments in another entity, he informed shareholders.
“This will also help secure the considerable synergies across PV, EV and JLR particularly in the areas of EVs, autonomous vehicles, and vehicle software,” Chandrasekaran said.
This will lead each company to deliver a superior experience for customers, better growth prospects for employees and, enhanced value for shareholders, he added.
Chandrasekaran said that domestic passenger vehicle segment is expected to cross the 5-million mark of annual sales over the next few years and Tata Motors is geared up to tap into this growth opportunity.
