Tata Motors Passenger Vehicles

“So, the results was weaker than we would have liked, are not inconsistent with our full year guidance. It will, however, require strong performance for the remainder of the year.”

“And the combination of price increases, cost reductions and PLI should see us step-up margins in H2.”

“So, I would definitely be targeting higher double-digit growths in FY 27.”

“So, we will try to neutralize the headwinds that we are facing through these two actions.”

“They're not inconsistent with our full-year guidance, and those results don't imply that we have a need to change that guidance.”

“We have already undertaken several debottlenecking actions and capacity expansion initiatives, particularly across some of the critical suppliers.”

“And the major additional capacity enhancement work that we have been doing will kick in from October, hopefully.”

“We will see improvement from this month and next two months.”

“This month onwards, we are further enhancing the capacity.”

“And we have a strong EV order book as we scale-up production.”

“Not surprisingly, the market with the biggest correction is China, down 25% year-over-year.”

“India business revenues at Rs.18,000 crores, grew 65% year-on-year, but the gains were nearly entirely offset by the steep commodity increases we saw on a quarter-on-quarter basis.”

“We are wholesaling the last vehicles that we have in stock over the next three to six months”

“then the new Jaguar Type 01, which by the way is absolutely fantastic, and we've just revealed some pictures of the interior, that will start production early next year. It is not going to have any material impact on wholesales for us in FY 27.”

“So, we will have enough capacity in our production systems to be able to be legislatively compliant and will hope production and demand will get us there.”

“We saw a 46% jump in volumes year-on-year.”

“Volumes have doubled over the last one year, and at June exit was tracking 15,000 a month.”

“While volumes will continue at a strong level throughout the year, growth rates are likely to moderate in H2 due to a higher base.”

“The structural shift in the industry mix is gaining momentum as EVs and CNG vehicles together now account for 31% of industry sales as in Q1, highlighting the increasing pace of consumer adoption of these two tech.”

“As a result, we further strengthened our position as the number two ranked player in the industry, improving our market share by 200 bps YoY to 14.3%.”

“as we balanced more into Range Rover, Range Rover Sport and Defender, which are now 81% of our sales.”

“VME in the second big column is significantly higher. It's now at 7.1%.”

“In the next column, industrial operations were hit by higher commodity prices.”

“And our intent is to save $1.7 billion in this space.”

“EBITDA margins were flattish at 4% year-on-year with EBIT margins and PBT improving due to the higher scale of the business.”

“Consolidated net debt stood at Rs.42,000 Cr at the end of the quarter.”

“India business continues to remain net cash positive, while net debt at JLR was GBP 3.6 billion.”

“But as we near the peak of our investment cycle, it gives a free cash flow pre-working capital of negative GBP 352 million.”

“capital reflecting a naturally high production and low sales quarter has built-up, though should largely reverse out through the year.”

“In the quarter post-working capital, our free cash f low was just under GBP 1 billion negative.”

“Range Rover and Range Rover Sport Electric come later this year. The radical Range Rover GT, which is bottom left, and Jaguar Type 01 early next year.”

“We launched the Tiago ICE Facelift in May, which enhanced the styling and tech quotient, ensuring greater aspiration for the hatch segment.”

“So our approach to North America, I think we announced earlier, is we've signed an MoU with Stellantis looking at producing vehicles which are specific to the U.S. market in North America.”

“There will be one more additional product which will get added to the portfolio in this financial year and two big refreshes also.”

“we had to shift our platform strategy to Freelander platform of CJLR. And that is going to delay the project a bit, but in 2027, we should be able to launch the product.”

“And the only other significant item is FX or commodities, which is largely the non-repeat of an GBP 83 million favorable revaluation gain in Q1 last year”

“And third is, in Q1, we had the seasonal impact of IPL which was to the extent of 1%. We won't have that in Q2, so there's a benefit of 1%.”

“Equally, emissions show as negative this quarter versus the big accrual release that we had in Q1 last year.”

“JLR wholesales were down in part due to the temporary supply constraints and Middle East conflict.”

“Wholesales were down about 10% year-over-year. This is partly caused by the run-out of legacy cars as we move to the launch of the new Jaguars, but also a fire at a supplier.”

“On retails, you can see those below, we are down 14.5K year-over-year and over 5,000 of this is Jaguar run out or Middle East conflict driven.”

“While these headwinds may persist in the near term, our focus remains firmly on mitigating their impact through levers that are within our control.”

“So the Middle East, if you look through the number set, it was relatively flat in terms of wholesales, but down about 1,400 units of retail during the quarter as traffic through the retailer network was reduced.”

“TMPV delivered revenues of Rs. 95,800 Cr for the quarter, EBIT margins at 2.4%, and PBT for the quarter stood at Rs. 1,600 Cr, down on a year-on-year basis.”

“This drove revenue to GBP 6 billion with EBIT of 2.8%, a positive PBT of GBP 109 million, but a significant cash outflow.”

“PLI accruals for the quarter was Rs. 313 Cr and came largely from Nexon.ev and Harrier.ev.”

“On North America, look, at our scale, it doesn't make sense for us localizing existing production of existing vehicles into North America.”

“Right now, only two of our products are qualified for PLI, which is Nexon and Harrier.ev.”