Tata Group Expects Auto Biz to Reach $100 Bn in Next 5 Years, Over ₹50,000 Cr Capex

 Tata Group expects its automotive business, including passenger and commercial vehicles, to grow to $100 billion in the next five years with a capex target of ₹40,000 crore in the domestic business and about 20 billion (British) Pound for JLR, Tata Group Chairman N Chandrasekaran said on Wednesday.

Responding to shareholders' queries at the 81st Annual General Meeting of the Tata Motors Passenger Vehicles held virtually, he said the EV market share target will be to remain at 40-45 %. It is around 42 % at present.

Chandrasekaran said Tata Motors Passenger Vehicles Ltd will keep its focus on launching aspirational products for its current consumers as it sets sights on a 10-fold volume growth between FY20 and FY30 and command a 20 % market share.

"I want to say that both companies (Tata Motors Passenger Vehicles Ltd and Tata Motors Ltd) have got very ambitious targets. The next five years (till FY31) the Tata Motors Passenger Vehicles company, including Jaguar Land Rover (JLR), will target a sale of $60 billion with JLR contributing about $45-50 billion and Tata Motors, domestic business, contributing about $15 billion," Chandrasekaran, who is also the Chairman of TMPV said.

The combined profit will be in excess of $5 billion, he said, adding that together with the CV business -- which has a target of $40 billion -- the automotive business between the two companies will be worth $100 billion.

In terms of capex, Tata Motors domestic business, for the next five years, has a capex target of ₹40,000 crore while JLR has a target of about 20 billion (British) Pounds (or ₹12,763 crore) he said.

Outlining the passenger vehicles company's business plans, he said, looking ahead in the next five years, the company has a big ambition. "Basically, in the decade between FY20 and FY30, the company wants to achieve a 10x growth in volumes with an ambition of 1.2 million plus vehicles and achieve a market share of 20 % from the current 14.2 %," he said.

Stating that in all, the company is on a growth trajectory, Chandrasekaran said TMPV will continue to focus on launching products that are aspirational for today's consumer.

The company has entered FY27 with confidence, a strong pipeline of new products and powertrains, both in Tata Motors' Passenger Vehicles as well as in Jaguar Land Rover, Chandrasekaran said, adding that JLR has a series of launches coming up in the second half of this year.

The company is also significantly investing in digital technologies, especially AI, across the value chain and the collaboration between Tata Motors' Passenger Vehicles and JLR is getting stronger, leveraging the complementary capabilities in manufacturing, technology and people, he said.

The successful commencement of the operations of the TML PV and JLR facility at Tamil Nadu also represents a very significant milestone, Chandrasekaran said.

TMPV and its subsidiary Jaguar Land Rover Automotive in February this year commenced operations at its new facility at Panapakkam in Tamil Nadu's Ranipet district.

The facility represents the first phase of a greenfield plant that will manufacture next generation vehicles, including electric vehicles both TMPV and JLR brands.

Chandrasekaran said the demerger of passenger vehicles and commercial vehicles businesses and creating them into two separate listed entities, is a "very decisive step" and just not a structural milestone in the company's journey to build a differentiated, future-ready, world-class personal mobility enterprise with not only a strong presence in India but a global footprint through Tata Motors as well as the JLR.

"Our ambition is to build a trusted, aspirational, globally competitive mobility brand that connects meaningfully with all customers of tomorrow," he said.

He said that FY26 started as a good solid year with expectations of steady global growth, moderating inflation and easing of financial conditions.

However, the supply chain issues and geopolitical tensions in West Asia towards the end of the fiscal year heightened concerns around inflationary pressures and slowing growth, Chandrasekaran said, adding, "Also, we had a cyber incident in JLR that led to temporary production pause for almost a couple of months." This resulted in the company having a revenue decline of 21 % over the previous year and delivered close to 23 billion British Pounds, he said.

Noting that in all these dynamic environments, resilience and execution become extremely critical, he said the company delivered a very strong performance in India.

He said the company has been on a transformation journey, especially since Covid, delivering a strong turnaround in terms of EBITDA and free cash flow.

"What used to be a cash burn of ₹4,000 crore has become a ₹2,000 crore positive cash flow and EBITDA has had a swing of more than ₹5,000 crore. Equally significant have been the product launches which enabled the company's market share to go from 4.2 % to 14.2 % this year," Chandrasekaran said.

The overall performance reflected the temporary disruption in JLR while the return to normal production sustained demand momentum in the India PV business provides strong confidence going forward, Chandrasekaran added.