MUMBAI: 24th May 2025: In an address to shareholders in their annual report, Tata Motors Chairman Natarajan Chandrasekaran has said that the demerger of the company into two distinct entities—one concentrating on passenger cars, Jaguar Land Rover (JLR), and electric vehicles (EVs), and the other on heavy commercial vehicles—will allow the parent company to adopt “a more focused approach to execution and value creation, delivering superior experiences for customers, rewarding careers for employees, and long-term returns to shareholders.”
“As we enter FY26, we do so with confidence in our strategy, strength in our execution, and faith in our people,” Chandrasekaran stated. The business is still monitoring global volatility, including the effects of changing trade conditions, the differences in market adoption of EVs, and technological changes.
“This will help us expedite our production plans while providing value to our customers,” he added
He also emphasised that the company’s future hinges on maintaining steady growth, improving customer satisfaction, and developing innovative ideas for safer, cleaner, and more connected mobility in the future.
Chandrasekaran echoed the opinions of international analysts in his letter to shareholders, predicting a period of turbulence in the future where major obstacles are anticipated for global growth rates. The Chairman of Tata Motors noted, “Amid trade uncertainties, global growth is projected to decelerate to 2.3% in 2025, down from 2.8% in 2024.”
“In FY25, Tata Motors aims to navigate a complex operating environment with agility and focus, facilitating consistent progress across our portfolio while strengthening the foundations of a resilient, customer-centric, and future-ready organization.”
He said that, in the same way that electricity changed our lives, artificial intelligence (AI) and generative AI (Gen AI) will change our world during this transition. “Generative AI is influencing the pace of change in other technologies and is emerging simultaneously across various sectors,” said Chandrashekar.
On Tata Motors’ AI strategy, he said that “AI and Gen AI present huge opportunities for Tata Motors in all aspects of the business, including vehicle conception, production, and operation.”
Chandrasekaran noted that integrating AI into vehicles is enhancing safety, boosting fuel efficiency, and offering drivers improved connectivity features.
When discussing the overall performance of Tata Motors, he said that the company’s three divisions—Commercial Vehicles (CV), Passenger Vehicles (PV), and Jaguar Land Rover (JLR)—all demonstrated quantifiable advancements in important areas and stayed in line with their strategic goals.
“Despite numerous challenges, the business achieved several important milestones, including a record high revenue of ₹439,695 crore, an EBITDA of ₹57,649 crore, and a record high profit before tax (PBT) of ₹34,330 crore, resulting in the group becoming debt-free this year.”
Additionally, he stated that Tata Motors has successfully reorganised its commercial vehicle operations into eight different verticals, improving strategic alignment and focus and enabling better performance delivery.
He expressed concerns about the performance of small commercial vehicles and pickups, pointing out that they have not yet met expectations and that the company is working hard to find a solution as soon as possible.
He praised the trucks and business segment, saying, “Despite the challenges faced by the industry, the business has successfully increased its market share and improved realisations in both trucks and buses.”
According to the chairman of Tata Motors, the company has made significant progress in its electric vehicle portfolio, with over 3,600 electric buses deployed in Smart City Mobility while maintaining high uptime.
Concerning the passenger and electric vehicle business, he stated, “The Indian passenger vehicle industry has entered a consolidation phase after years of rapid growth, with consistent demand moderated by macroeconomic factors.”
“While SUVs and CNG vehicles have contributed to achieving significant milestones in cumulative PV and EV sales,” Tata Motors Chairman indicated, “the company has increased the share of CNG and electric vehicles to 36% of its overall portfolio.”
By beginning work on its new manufacturing facility in Tamil Nadu, the company has set the stage for future growth. The chairman of Tata Motors stated that the company has simultaneously expanded its retail presence and nationwide infrastructure to support this development.
