Tata Motors anticipates continued disruption in the global economic and automotive landscape—from geopolitical tensions and changing tariff regimes to AI-led innovation and the clean energy transition, N Chandrasekaran, Chairman of the Board of Tata Sons & Non-Executive Director and Chairman – Tata Motors, has said. However, with restructuring its businesses, placing strategic bets, and fortifying its balance sheet, the company believes it is not only equipped to weather these uncertainties but also to lead the industry transformation with confidence and agility, he added.
Speaking at the 80th AGM of the company he said that he had the opportunity to personally update Ratan Tata on the company’s turnaround—especially in the PV business—which was received with enthusiasm. Tata Motors, after all, remains close to Ratan Tata’s heart.
Talking about the demerger he said, Tata Motors is entering a pivotal phase in its corporate journey, with the demerger of its commercial and passenger vehicle businesses well underway. By the end of this calendar year, the company will operate as two independently listed entities—one dedicated to Commercial Vehicles (CV) and the other housing the Passenger Vehicles (PV) business along with Jaguar Land Rover (JLR). This structural separation follows years of strategic simplification, financial strengthening, and business-focused reorganisation.
Each vertical—CV, PV, and JLR—is now operating as a distinct, financially sound entity with a clear strategy and dedicated leadership. The transformation is visible in the performance metrics across all divisions.
The CV business has delivered a standout year. In FY25, it generated revenues of INR 75,100 crore and achieved a record EBITDA of INR 8,800 crore. Free cash flows stood at INR 7,500 crore, with an impressive ROCE of 37.7%. Tata Motors outperformed the industry, gaining market share in the truck and bus segments. However, it acknowledged underperformance in the small commercial vehicle segment, which it now aims to address. The recently embedded eight-vertical structure has enabled the CV business to become more agile, accountable, and sharply focused on customer needs, he said.
The PV business also recorded strong progress. Tata Punch emerged as India’s top-selling SUV, while CNG and electric vehicles together accounted for 36% of its product mix. With revenues (including EVs) touching INR 48,445 crore and EBIT at 0.9%, the PV division enhanced its profitability through disciplined cost control and localisation, leading to a 40-basis-point improvement in EBITDA over FY24, he mentioned.
JLR continued its global resurgence, clocking revenues of £28.9 billion and delivering an EBIT of 8.5%, resulting in a pre-tax profit of £2.5 billion. Notably, the company turned net cash positive during the year. The enduring appeal of the Range Rover and Defender ranges was central to this performance. In India, Tata Motors began CKD (completely knocked down) assembly of the Range Rover and Range Rover Sport, making these premium models more accessible to domestic customers.
On a consolidated basis, Tata Motors posted its strongest-ever performance, achieving record revenues of INR 4,39,695 crore, EBITDA of INR 57,649 crore, and a pre-exceptional PBT of INR 34,330 crore. Most notably, the Tata Motors Group became debt-free in FY25—a milestone that underscores its financial resilience and strategic execution amid a volatile global environment.
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