Tata Motors to Invest Rs 43,000 Cr in FY25 for Product and Technologies

Tata Motors Group has increased its investment for FY25 to 43,000 crore rupees, focusing on new products and technologies, according to a Business Standard report. The investment will slightly exceed Tata Motors' FY24 investment of 41,200 crore rupees, the newspaper added.

Key Takeaways from Tata Motors:

• Auto major Tata Motors will invest Rs 43,000 crore for products and technologies in 2024-25.
• British arm, Jaguar Land Rover, is expected to garner a lion's share of around Rs 33,000 crore.
• JLR’s investments would increase by about 6%, while Tata Motors would be flat in FY25, said PB Balaji, Group CFO, post the earnings.
• Motilal Oswal expects JLR margins to remain stable over FY24-26, given rising cost pressure as it invests in demand generation, normalising mix, and EV ramp-up.

Tata Motors’ British subsidiary, Jaguar Land Rover will likely absorb the majority of this investment, the newspaper said citing senior officials. However, in FY24 JLR saw an approximate investment of 33,000 crore rupees, while Tata Motors was around 8,000 crore rupees. 

According to PB Balaji, Group CFO, JLR’s investment in FY25 would be seen increasing by 6%, while that of Tata Motors would be flat.  Further, JLR will launch The Range Rover BEV and the Defender Octa this year. 

"...JLR is expected to be net debt-free in FY25 as compared to the current net debt of £0.7 billion, despite the planned capex of £3.3 billion…," Sharekhan analysts said according to the Financial Daily.

JLR's net debt reduced to £732 million from £1.57 billion in the third (Oct-Dec) quarter indicating Indian auto operations net debt-free.

According to Business Standard, Motilal Oswal analysts said, "We expect JLR margins to remain stable over FY24-26, given rising cost pressure as it invests in demand generation, normalising mix, and EV ramp up..." 

About Tata Motors Limited:

Tata Motors Limited is an Indian multinational automotive company in Mumbai and part of the Tata Group. The company is in the production of cars, trucks, vans, and buses. Tata Motors’ subsidiaries include British Jaguar Land Rover and South Korean Tata Daewoo. It also has joint ventures with Hitachi and Stellantis, which makes vehicle parts for Fiat Chrysler and Tata-branded vehicles. Tata Motors has auto manufacturing and vehicle plants in Jamshedpur, Pantnagar, and Lucknow as well as in Argentina, South Africa, the UK and Thailand. 

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