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The country’s largest automaker, which owns the British luxury car brands Jaguar and Land Rover, is in the process of setting up a new JLR assembly facility near Chennai, Tamil Nadu
Volumes also impacted by planned wind down of legacy Jaguar models ahead of new Jaguar launch, a deterioration of market conditions in China, and ongoing incremental US tariffs impacting JLR’s US exports
Tata Motors share price today: UK-based subsidiary Jaguar Land Rover (JLR) reported a sharp decline in second-quarter sales, hit by a cyber incident and the planned wind-down of older Jaguar models.
The UK-based luxury carmaker has said that some of its systems were back online as part of a phased recovery process.
Jaguar Land Rover is extending factory closure until October 1 following a cyberattack in early September.
Together, Iveco and Tata Motors' commercial vehicle business will have combined revenue of €22 billion (Rs 2.20 lakh crore) across Europe (50%), India (35%) and the Americas (15%).
Tata Motors is planning to invest Rs 9,000 crore in the Ranipet facility.
Tata Motors said its CV business will be 'stepping up the pace now', setting sight on a 40% market share by 2027 with teen EBITDA margin. Commercial vehicles at Tata Motors could see a proactive investment in decarbonisation along with software defined vehicles (SDVs).
The company has declared a dividend of Rs 6 for the shareholders of the company. The company also fixed payment date on June 25, 2025.
A bumpy road ahead for JLR with revenue and earnings cuts in the near-term seen given the need to rework trade terms with the US market
JLR sold over 400,000 units globally in FY24 out of which about 23 percent came from the US; India’s auto ancillary firms — Sona BLW Precision Forgings, Bharat Forge, and Samvardhana Motherson International Limited (SAMIL) — are also staring at turbulence
The stock of Tata Motors is a 'High Conviction Outperform' for CLSA, which expressed confidence that JLR will be achieving FY25 targets, assigning the stock a price target of Rs 930 per share.
While JLR's FY26 outlook remains hazy, shares of Tata Motors have also reeled under pressure, taking a sharp hit in the last six months.
During the September quarter, wholesale volumes in China were down 38% on-year, compared to a 44% jump in the North American market and a 6% increase in Europe.
While CVs saw flattish growth in volumes, the company has lately lost market share in PVs in domestic markets. Even electric vehicle (EV) sales ramp up leaves much to be desired
The automaker has earmarked Rs 9,000 crore for the Tamil Nadu unit, which is expected to generate about 5,000 jobs
JLR officials said they are planning a multi-storey building size of 40,500 square feet, almost entirely constructed from engineered bamboo near Ulsoor Lake in Bengaluru
Even as Tata Motors has come a long way and gained market share in India, it continues to earn a significant part of revenues from the JLR.
This will be the automobile major’s second plant in South India. The country's leading EV manufacturer already has a facility in Karnataka's Dharwad
Tata Motors recently launched its 'Festival of cars' campaign, significantly slashing prices for its electric vehicle as well as traditional vehicles for a limited period.
With this, the complete Range Rover portfolio is now made-in-India, the company said.
Tata Motors believes that the EV policy is not aligned with Jaguar Land Rover's India strategy and it has no plans to utilise that policy to expand the British luxury brand's business in India
The analysts noted that the stock is trading above its historical average multiple but added that they believe it was justified
Till now, the Range Rover models were only being manufactured in Tata Motors-owned JLR's UK plant and then exported world over.
The management narrative of moderation in sales for some geographies and auto segments along with rise in costs suggests that earnings growth has peaked for the near term
