Tata Motors Limited — PPTs, 09-06-2025: Investor Presentation

1. Financial Highlights:

Tata Motors reported consolidated revenues of ₹440K crores in FY25, reflecting a strong turnaround. The Commercial Vehicle (CV) segment achieved an 11.8% EBITDA margin, 37.7% ROCE, and generated ₹7.4K crore in free cash flow (10% of revenue). Passenger Vehicles (PV) posted an 8.1% EBITDA margin and around ₹1K crore FCF despite a 30% decline in hatchback volumes countered by 11% SUV volume growth. The EV division reached positive breakeven with a 1.2% EBITDA margin, though cash flow remains negative and externally funded. Net automotive debt turned into net cash, aided by significant deleveraging, leading to rating upgrades.

2. Strategic Initiatives & Growth Drivers:

The CV business targets a 40% market share with doubledigit EBITDA margins and 7%-9% free cash flow by 2027. Planned capex is moderate: 2%-4% for CV and 6%-8% for PV, with ₹33-35K crores investment in PV and EV from FY26-30. Focus areas include product innovation, Software Defined Vehicles, and electrification. PV plans seven new nameplates plus 23 refreshes by FY30 and aims to mainstream multi-powertrain and EVs. EV charging infrastructure is set for fivefold expansion with over 300 Tata.ev Mega Chargers and multiple ecosystem partnerships.

3. Business Developments:

The ongoing demerger will create two separate listed entities for CV and PV businesses, designed for streamlined operations and sharper capital allocation. CV leads with enhancements in digital and downstream services like Fleet Edge and Smart City Mobility Solutions. EV sales and service footprints are expanding pan-India, complemented by new electric bus models and flexible leasing offerings. Key new launches include ACE PRO (SCV), Curvv (SUV), and additional EV models supporting portfolio diversification.

4. Market Position & Competitive Advantage:

Tata Motors commands #1 market share in India’s CV segment, particularly trucks at 53.9%, with strong bus and SCV-pickup positions. PV’s SUV segment holds 55% industry share, with 11% YoY growth in Tata SUVs. Differentiators include a strong brand, digital transformation, advanced driver assistance systems (ADAS), connectivity, and SDVs, alongside customer-centric mobility solutions. Sustainability initiatives and expanded aftersales with digital-enabled workshops enhance customer loyalty and brand value.

5. Investor Implications:

Clear strategic direction, strong financials, and technology investments underlie Tata Motors’ positive growth outlook. CVs show robust margin expansion and free cash flow generation potential. PV is focused on upgrading products and EV leadership amid demand headwinds, targeting double-digit EBITDA medium term. EV ecosystem scaling and charging infrastructure reduce adoption hurdles and support volumes. Execution risks remain in PV demand variability, competition, and demerger execution, but the firm is well-positioned for profitable, sustainable growth driven by innovation and customer focus.