Despite global headwinds, Tata Motors aims to lead with agility, EV focus, and strategic independence across business lines.
20 Jun 2025 | 796 Views | By Darshan Nakhwa
Tata Motors is bracing for a future defined by geopolitical volatility, supply chain realignments, tariff wars and rapid advances in artificial intelligence and energy transition–but the company is not merely preparing to endure; it is structured to thrive, said Chairman N. Chandrasekaran at the automaker's 80th Annual General Meeting on ...
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Tata Motors is bracing for a future defined by geopolitical volatility, supply chain realignments, tariff wars and rapid advances in artificial intelligence and energy transition–but the company is not merely preparing to endure; it is structured to thrive, said Chairman N. Chandrasekaran at the automaker's 80th Annual General Meeting on Friday.
"...Nowhere are all these disruptions visible more than in the automotive sector. Given the enormous amount of work we have done over the past few years—from simplifying the businesses to making big strategic bets to strengthening our financial position—our businesses are structured to not just handle this environment, but to thrive,” he said.
The AGM opened on a somber note, with a moment of silence for the victims of the Air India Flight 171 tragedy. Chandrasekaran also paid tribute to the late Mr. Ratan Tata, acknowledging his enduring legacy and influence on the Group.
The company also reaffirmed that its previously announced demerger is on track, with Tata Motors expected to operate as two separate publicly listed entities—one for Commercial Vehicles (CV), and the other combining Passenger Vehicles (PV) and Jaguar Land Rover (JLR)—by the end of 2025.
Business Unit Highlights
In FY25, Tata Motor’s owned Jaguar Land Rover contributed £28.9 billion in revenue and a healthy 8.5% EBIT margin, leading to £2.5 billion in profit before tax. For the first time, JLR also turned net cash positive.
"The Range Rover and Defender franchises continue to lead JLR’s strong performance," he said, highlighting localised CKD manufacturing of Range Rover and Range Rover Sport models in India.
In FY26, the luxury carmaker expects its full-year revenue to decline to £28 billion in FY26 from £29 billion in FY25, the company’s management told analysts this week. The anticipated downturn in topline performance is attributed to a combination of trade-related disruptions, weakening demand in China, regulatory challenges, currency headwinds, and slower adoption of battery electric vehicles.
In light of these challenges, the company has trimmed its EBIT margin guidance for FY26 to 5–7%, a notable drop from the 8.5% margin achieved in FY25 and well below its earlier forecast of 10%.
In FY25, Tata Motors CV division delivered revenue of ₹75,100 crore, down 5% on year, but a record EBITDA of ₹8,800 crore, with free cash flow of ₹7,500 crore and ROCE of 37.7%. Market share gains were noted in trucks and buses, while the company flagged the small commercial vehicle segment as a focus area for improvement.
“With its (CV segments) eight-vertical structure now fully embedded, the business is transforming into a more agile, accountable, and customer-centric organization,” Chandrasekaran said.
Tata Motor’s PV division, including EVs and CNGs, clocked ₹48,445 crore in revenue in FY25, with Tata Punch emerging as India’s top-selling SUV. EV and CNG models now make up 36% of the multi-powertrain portfolio, and operational efficiency improvements resulted in a 40 basis point increase in EBITDA margin.
On a consolidated basis, Tata Motors recorded Rs 4,39,695 crore in revenue, Rs 57,649 crore in EBITDA, and a record Rs 34,330 crore in PBT (before exceptional items) in FY25, leading to the Tata Motors Group becoming debt free. The automaker has also announced a final dividend of Rs 6 per ordinary share, pending shareholder approval.
"Each business is healthy, financially fit, and has its own strategy led by its own independent management team," Chandrasekaran said.