Synopsis

Tata Motors aims for a USD 100 billion automotive business by FY31. The company plans substantial capital expenditure for domestic operations and JLR. Passenger vehicles will focus on aspirational products and market share growth. Jaguar Land Rover will contribute significantly to the projected sales figures. Digital technologies and AI are key investments for future operations.

Tata Group expects its automotive business, spanning passenger vehicles, commercial vehicles and Jaguar Land Rover (JLR), to grow into a USD 100 billion business over the next five years, with planned capital expenditure of Rs 40,000 crore in the domestic business and about 20 billion British pounds for JLR, Chairman N Chandrasekaran said on Wednesday.

Responding to shareholders' queries at the Tata Motors Passenger Vehicles Annual General Meeting, Chandrasekaran said Tata Motors Passenger Vehicles and JLR together are targeting USD 60 billion in revenue over the next five years.

Also read: Tata Motors PV targets 10x volume growth by FY30; Chairman N Chandrasekaran aims for 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 USD 60 billion with JLR contributing about USD 45-50 billion and Tata Motors, domestic business, contributing about USD 15 billion," he said.

He added that the combined profit from the passenger vehicle business and JLR is expected to exceed USD 5 billion. Along with the commercial vehicle business, which has a revenue target of USD 40 billion, the group's overall automotive business is projected to reach USD 100 billion.

Capex roadmap takes shape

Chandrasekaran said Tata Motors' domestic passenger vehicle business has earmarked Rs 40,000 crore in capital expenditure over the next five years, while JLR plans to invest about 20 billion British pounds during the same period.

He also said the company intends to maintain its leadership in electric vehicles, with a target of retaining a 40-45 per cent market share. The EV market share currently stands at around 42 per cent.

Also read: To ride the EV wave, M&M takes premium path, Tata Motors bets on scaleChandrasekaran said Tata Motors Passenger Vehicles will continue to focus on launching aspirational products for customers as it pursues its long-term expansion plans.

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

He added that the demerger of the passenger and commercial vehicle businesses into two separately listed entities represents "a very decisive step" towards building a differentiated and future-ready mobility enterprise with a strong presence in India and a global footprint through Tata Motors and Jaguar Land Rover.