N Chandrasekaran flags tech disruption as core to future strategy and how Tata Motors is evolving its gameplan aligning with this rapid change
24 May 2025 | 1543 Views | By Darshan Nakhwa and Ketan Thakkar
Artificial Intelligence (AI) is not just another wave of technological progress but a “civilisational shift” that will redefine the contours of industrial innovation and mobility — this was the central message from Tata Motors Chairman N Chandrasekaran in the company’s 80th Integrated Annual Report for FY25.
Calling AI and ...
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Artificial Intelligence (AI) is not just another wave of technological progress but a “civilisational shift” that will redefine the contours of industrial innovation and mobility — this was the central message from Tata Motors Chairman N Chandrasekaran in the company’s 80th Integrated Annual Report for FY25.
Calling AI and Generative AI (Gen AI) “as fundamental to human progress as electricity once was,” Chandrasekaran underlined the magnitude and immediacy of this transformation. “This is not merely another technological shift; it is a civilisational one,” he stated, adding that the pace and scale of AI adoption is being supercharged by “parallel progress in semiconductors, cloud computing, quantum technologies, robotics, energy innovations, and innovations in energy storage.”
He noted that what sets the current era apart is the simultaneity of breakthroughs. “Unlike previous technological revolutions that arrived sequentially across the globe, AI/Gen AI is emerging simultaneously everywhere and impacting the pace of change of other technologies.”
Against this backdrop, Tata Motors is evolving its strategy to embed AI across its operations. The company sees opportunities for AI to redefine how vehicles are designed, manufactured, and operated. “AI in vehicles is improving safety, increasing fuel efficiency, and providing drivers with enhanced connectivity features. This is the new context in which we craft our strategies for the future,” Chandrasekaran remarked.
Navigating a Complex Global Landscape
Chandrasekaran also commented on the shifting global economic environment that shaped FY25. The year began with optimism, buoyed by hopes of macroeconomic stability, falling inflation, and declining interest rates. However, mid-year volatility and policy shifts disrupted this outlook. “This macro narrative shifted with rising concerns around global growth and inflation as policy uncertainty rose sharply with dramatic shifts in trade policy,” he noted. Global growth projections were revised down to 2.3% in 2025 from 2.8% in 2024.
Despite this uncertainty, Tata Motors reported steady progress across its three core automotive businesses — Commercial Vehicles, Passenger Vehicles, and Jaguar Land Rover. “Your Company made steady progress in FY25, navigating a complex operating environment with agility and focus,” Chandrasekaran stated, noting that each business remained aligned to its strategic priorities and demonstrated tangible gains.
The company faced headwinds from geopolitical tensions, supply chain constraints, and variable demand across regions but continued to reinforce its foundations as a “resilient, customer-centric, and future-ready organisation.”
Strategic Continuity in a Disrupted Age
Tata Motors’ FY25 report reflects a company undergoing deep transformation — technologically through AI integration and structurally through internal realignment. With a sharpened organisational focus and an embrace of next-generation technologies, Tata Motors is preparing not just to adapt but to lead in the future of mobility.
“This is the new context in which we craft our strategies for the future,” Chandrasekaran concluded.
Structural Realignment for Future Agility
The company’s evolving technological outlook comes alongside a significant organisational shift. Tata Motors is set to demerge its operations into two distinct, publicly listed companies — one focused on personal mobility, including its Passenger Vehicles business and Jaguar Land Rover, and the other dedicated to commercial mobility solutions.
The move, according to the company, is aimed at enhancing agility, sharpening focus, and unlocking long-term growth potential across both segments. By operating as independent entities with separate leadership teams and clearly defined market mandates, each business will be better positioned to drive innovation and respond swiftly to changing industry dynamics.
Tata Motors emphasized that the demerger represents more than a structural change — it is a strategic reaffirmation of the company’s commitment to long-term value creation, deeper customer trust, and leadership in sustainable mobility. While the passenger mobility arm will continue advancing electric and premium offerings through Tata Motors PV and JLR, the commercial vehicles unit will focus on delivering integrated mobility and fleet solutions across domestic and global markets.
“As the company charts this new course, it views the transition as a critical step in building a future that is safer, smarter, and greener — one that is aligned with evolving customer needs and global sustainability goals,” the company stated.