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May 19, 2024

Tata Motors Boosts FY25 Investment to Rs 43,000 Crore for New Products and Technologies

Tata Motors group has announced an increased investment outlay of Rs 43,000 crore for the fiscal year 2025, focusing on new products and technologies. A significant portion of this investment will be directed towards its British subsidiary, Jaguar Land Rover (JLR), as confirmed by a senior company official.

In the previous fiscal year (FY24), Tata Motors group had projected a total investment of approximately Rs 38,000 crore, with JLR receiving £3 billion (around Rs 30,000 crore) and Tata Motors India getting Rs 8,000 crore. However, the actual investments exceeded these projections, reaching approximately Rs 41,200 crore. JLR’s investment alone rose to £3.3 billion (over Rs 33,000 crore), while Tata Motors India’s investment surpassed Rs 8,200 crore.

For FY25, JLR’s investment is set to increase to £3.5 billion (about Rs 35,000 crore), reflecting a 6% rise from the previous year. Tata Motors India will maintain its investment at around Rs 8,000 crore. This strategic allocation underscores the group’s commitment to advancing its product lineup and technological capabilities.

PB Balaji, Tata Motors Group CFO, elaborated on these plans during an earnings conference. He emphasized that the investments are primarily focused on new products and technological advancements for both JLR and Tata Motors. Balaji highlighted the importance of timely product launches, noting that “there is a phasing issue we are dealing with, and these products have to be launched on time.”

Jaguar Land Rover CFO Richard Molyneux provided further insights into the company’s upcoming product launch program. He revealed that FY26 will mark the debut of JLR’s new products, including the highly anticipated Range Rover Battery Electric Vehicle (BEV). Molyneux explained, “We will have Range Rover BEV in the market by then and other products as well. At that point in time, we start to replace some of the vehicles on which we make less money with brand-new vehicles, which normally helps EBIT levels.”

The Range Rover BEV represents a significant milestone for JLR. Unlike traditional BEVs, this vehicle integrates a BEV powertrain within the classic Range Rover design. Molyneux emphasized that this approach perfectly aligns with the brand’s commitment to delivering a unique combination of power, quietness, and serenity. “BEV happens to give the exact combination of power, quietness, and serenity that is perfect for the Range Rover brand. So, this will be the top-end of Range Rover,” he said.

In addition to the Range Rover BEV, JLR will continue to develop and enhance its Range Rover and Range Rover Sport offerings. The Defender OCTA, another key model, is set to launch later this year, further expanding JLR’s robust product portfolio.

The increased investment and focus on new product development are pivotal for Tata Motors and JLR as they navigate the evolving automotive landscape. By prioritizing innovative technologies and timely product launches, Tata Motors group aims to strengthen its market position and drive long-term growth.

In summary, Tata Motors’ strategic investment of Rs 43,000 crore for FY25 underscores its dedication to innovation and market leadership. With substantial funding allocated to JLR and a consistent investment in Tata Motors India, the group is poised to introduce cutting-edge products and technologies that will shape the future of the automotive industry.

Jhumpa Lahiri

Jhumpa Lahiri

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