Chairman’s Speech at 79th AGM of Tata Motors Ltd on 24 June 2024

Good Afternoon, Ladies and gents. Let me take this chance to take you thru the backdrop wherein your organization is working, the efficiency final yr in addition to the plans for the years to come back.

While we’re seeing progress and stability in India, the worldwide geo-political situation continues to stay troubled with persevering with army conflicts. The coordinated actions by the central banks of a number of international locations have helped reasonable inflation albeit absolutely the worth ranges proceed to stay excessive. The financial situation is predicted to stabilize with international progress estimated to be round 3% in the course of the subsequent couple of years.

The structural shifts that we had referred to as out final yr once we met, are persevering with to evolve. These are i) Energy transition–irreversible transfer to inexperienced mobility, ii) Rebalancing of provide chains to realize resiliency and iii) Digital acceleration with Artificial Intelligence and Machine Learning changing into mainstream.

With the turnaround at Tata Motors, I’m happy to say that the Company is embracing these shifts from a place of energy and confidence.

In the primary section of this ongoing multi-year journey, the corporate has delivered a superb efficiency in FY24. All the three companies, – Commercial Vehicles (CV), Passenger Vehicles (PV) and JLR, developed and executed on their differentiated methods to ship exceptional enchancment in efficiency throughout metrices – model well being, buyer expertise, monetary, product innovation, and worker engagement.

On a consolidated foundation, the corporate delivered a number of highs. The whole automobile gross sales elevated 7.4% yr on yr to over 13.8 lakh models. Revenues have been ₹ 437.9K Cr, EBITDA was ₹ 62.8K Cr and web revenue of ₹31.8K Cr (+₹29.1K Cr over the earlier yr). The India automotive enterprise is now debt-free, and the Company is properly on monitor to make JLR debt-free in FY25.

Due to this sturdy efficiency, the Board has beneficial a remaining dividend of ₹3 per share to bizarre shareholders and ₹3.1 per share to DVR holders and a particular dividend of ₹3 per share to bizarre shareholders and ₹3.1 per share to DVR holders, each topic to your approval in the present day.

Let me speak concerning the particular person companies.

Passenger Vehicles Business:

The PV & EV enterprise in India delivered a file efficiency for the third successive yr with gross sales of over 5.7 lakh models (up 6% vs FY23. The sharp focus on emission-friendly applied sciences has improved the penetration of CNG and electrical automobiles to 29% within the general portfolio. In EVs, the enterprise continued to cleared the path with 70%+ market share. We operationalised the brand new manufacturing facility in Sanand inside a yr of buying it.

Our thrust on security gained credence with Safari and Harrier changing into the primary SUVs within the nation to get the coveted 5-star security certification from Bharat NCAP. I have to additionally point out that just some days in the past, Punch.ev and Nexon.ev too obtained this certification with the most effective at school 5-star score making them the primary as properly of their section. Further, the highest two SUVs bought throughout FY24 in India – Nexon & Punch, proudly sported the TATA brand.

Commercial Vehicles Business:

The focus on worthwhile progress resulted within the enterprise recording an annual income of ₹ 78,791 crore in FY24 rising by 11.3% vs FY23 and PBT (bei) of ₹ 6102 Cr rising by round 90% over final yr. Apart from Heavy vans, Intermediate vans, Small Commercial Vehicles, Buses and International Business, the corporate is concentrated on rising its Non-Vehicular enterprise (spares and repair and so forth.), incubating Smart Mobility (EV mobility options for cities) and Digital enterprise (digital options for the truck and journey ecosystem).

Tata Motors has a robust market presence constructed over many a long time, a robust model, a strong technological spine, and a complete portfolio.

Jaguar Land Rover Business:

Following three years of provide constraints on account of semiconductor shortages, inflation, vitality disaster and geopolitical instability, JLR has firmly re-established its monetary stability in FY24 thereby efficiently laying the foundations for the subsequent chapter of its Reimagine technique. It unveiled a brand new home of manufacturers method and the brand new look of the JLR company identification to speed up the supply of its imaginative and prescient of being the proud creator of trendy luxurious. The enterprise recorded its highest-ever annual revenues of £29 billion (+27% YoY), PBT (bei) of £2.1 billion and file free cashflows of £2.3 billion in FY24.

Corporate Actions:

During FY24, the corporate additionally undertook a number of strategic company actions to simplify and strengthen its capital construction. These included efficiently finishing the delisting of its American Depositary Shares from the New York Stock (*24*); diluting a component of its stake in Tata Technologies Ltd via a profitable IPO, and securing shareholder approval for a capital discount scheme for the DVR shares. More lately, we now have introduced the merger of Tata Motors Finance with Tata Capital Ltd.

Going ahead:

While all 3 companies will proceed to focus on bettering their monetary energy and enhancing buyer expertise, the methods they may undertake will get extra differentiated, sharpened and refined in keeping with their market place, model energy and progress aspirations.

The PV enterprise will focus on Market beating progress, expertise, and model management. The enterprise will proceed to put money into merchandise, platforms, electrical & digital architectures, and automobile software program to stay aggressive.

The EV enterprise will focus on deepening penetration via a number of product launches, focus on market improvement, charging community enhancements and persevering with to introduce aspirational product options.

The CV enterprise will focus on driving expertise and model management to ship constant, worth accretive progress within the coming years. Apart from vehicular gross sales, it’s going to additionally focus on automobile parc linked companies like spares, digital and good mobility options which is able to assist cut back the volatility of the automobile gross sales enterprise.

JLR will proceed to double down on its journey to develop into a premium luxurious OEM, focus on enhanced buyer love and proceed to put money into merchandise and applied sciences. There is an thrilling vary of merchandise lined as much as be launched over the subsequent 3 years that must be delivered efficiently. The first electrical Range Rover launches later this yr, and there are additional EVs lined up within the coming years together with the all-electric Jaguar. The Company shall proceed to put money into merchandise, platforms, electrical & digital architectures and automobile software program to supply a world class buyer expertise to our discerning clientele.

Demerger:

To allow sharper execution of their properly differentiated methods and to additional empower every enterprise to pursue it purposefully with better agility and accountability, the Board has proposed the demerger of the Company into two separate listed firms housing A) the Commercial Vehicles enterprise and its associated investments in a single entity and B) the Passenger Vehicles companies together with PV, EV, JLR and its associated investments in one other entity. This may even assist safe the appreciable synergies throughout PV, EV and JLR significantly within the areas of EVs, autonomous automobiles, and automobile software program. This will lead every firm to ship a superior expertise for purchasers, higher progress prospects for workers and, enhanced worth for shareholders.

In conclusion, I’d wish to say that we now have an thrilling journey forward of us and the administration groups are very dedicated and targeted in direction of accelerating our progress journey. Now earlier than I invite feedback from our esteemed shareholders, I request Group CFO, PB Balaji to take you thru the efficiency of the corporate in better