Tata Motors has clocked 29.7 percent revenue growth in Q2FY2023 at Rs 79,611 crore and its EBITDA margin improved by almost 130 bps in Q2FY2023 to 9.7% on improving supply of semiconductors, festive season and new launches. The consolidated net loss also narrowed down to Rs 944.61 crore in Q2 from Rs 4,441.57 crore in Q2FY22.
The company’s passenger vehicle business posted robust performance with Q2 PV domestic wholesale volume growth of 70 percent. The Q2 EV volumes are highest, up three-fold at 11,500 units. EV penetration is up 8 percent while CNG penetration increased to 10 percent in Q2FY2023.
PV business continued its strong momentum on account of festive season and strong demand for UVs led by Punch and Nexon. Strong volumes, richer mix and better realisations improved the year-on-year margins.
The auto major’s PV market share improved to 14.1 percent in H1 FY2023. The company expects demand to remain strong and aims to complete the acquisition of the Ford plant at Sanand in the coming months. Despite significant step-up in investments, the PV business is expected to remain self-sustaining whilst the EV business investments continue to be well funded.
Shailesh Chandra, managing director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility Limited said: “The recent festive season (Navratri to Dhanteras) saw 43 percent growth in retail sales over the previous year’s festive season sales. The overwhelming customer response received for the Tiago EV, launched towards the end of the quarter, will further accelerate mass adoption of EVs across the country. Going forward, we remain vigilant about the evolving demand and supply situation.“
With regards to the commercial vehicles industry, the company recorded 19 percent growth in domestic sales over Q2 FY22 led by stronger sales of MHCVs and a robust recovery in passenger carriers demand. Improving fleet utilisations, pick up in road construction projects and increase in cement consumption catalysed the demand recovery for MHCV. CV exports however shrunk sharply by 22 percent due to the economic situation in certain markets, though it improved sequentially by 30 percent.
The company will continue to focus on registration market share improvement with demand pull strategy, innovation intensity, restoring double-digit EBITDA margins and successfully delivering on new business models. Girish Wagh, Executive Director Tata Motors said: “We will drive the business on “Demand Pull” by focusing on customer connect, product innovation, service quality and thematic brand activations thereby improving customer affinity for our brands, step up registration market shares sustainably, and improve realisations and profitability.”
The company believes that th recent launches of the new range of smart trucks in MHCV and ILCV, and best-in-class pickups will help strengthen demand.
Jaguar Land Rover is continuing to focus on signing long-term partnership agreements with chip suppliers which is improving visibility of future chip supply. Production and sales volumes are expected to improve with positive profit margins and cashflow expected in the second half of FY2023 and free cashflow is expected to be near breakeven for the full financial year. Thierry Bolloré, Jaguar Land Rover’s Chief Executive Officer, said: “Demand for our most profitable and desired vehicles remains strong and we expect to continue to improve our performance in the second half of the year, as new agreements with semiconductor partners take effect, enabling us to build and deliver more vehicles to our clients.”
JLR’s new electric model development is on track as per the company statement, with work to transform its UK plants for next generation of BEVs underway.