Tata Motors Group is a leading global automobile manufacturer. Part of the illustrious multi-national conglomerate, the Tata group, it offers a wide and diverse portfolio of cars, sports utility vehicles, trucks, buses, and defence vehicles to the world. Tata Motors, a USD 42 billion organization, is a leading global automobile manufacturer of cars, utility vehicles, pick-ups, trucks, and buses.
The company operates across multiple continents with a sophisticated global network. It has operations in India, the UK, South Korea, South Africa, China, Brazil, Austria, and Slovakia through a strong global network of subsidiaries, associate companies, and Joint Ventures (JVs), including Jaguar Land Rover in the UK and Tata Daewoo in South Korea. Tata Motors is a global automobile manufacturer with operations in over 125 countries, including India, South Korea, China, South Africa, United Kingdom, and Brazil through a global network of joint ventures, subsidiaries, and associate companies.
Tata Motors has a market capitalization of ₹2,53,671 Crore as of recent data, though this represents a decline of 30.6% over the past year. The company's stock is widely held across major Indian indices, including BSE Sensex, Nifty 50, BSE 500, BSE 100, BSE 200, Nifty 500, BSE Auto, Nifty 100, Nifty Auto, Nifty 200, Nifty 100 Liquid 15, Nifty50 Value 20, Nifty 100 Equal Weight, BSE Allcap, BSE LargeCap, BSE Consumer Discretionary, BSE India Manufacturing Index, BSE SENSEX 50, and BSE 100 ESG Index.
The company's ownership structure shows strong promoter confidence. Promoter holding in Tata Motors Ltd has gone up to 42.58% as of March 2025 from 41.86% as of September 2024. The current promoter holding stands at 42.6%.
Tata Motors operates through several distinct business segments that collectively contribute to its comprehensive automotive portfolio. The company's primary segments include commercial vehicles, passenger vehicles, and luxury vehicles through its premium subsidiary.
Jaguar Land Rover (JLR) represents 71% of revenue in 9M FY25 versus 67% in FY22. The company offers premium luxury vehicles through Jaguar Land Rover, which it acquired in 2008 for $2.3 billion. The Jaguar brand offers luxury sedans, electric vehicles, and sports cars, while Land Rover focuses on SUVs and off-road vehicles.
The company's commercial vehicle segment continues to be a significant contributor to its operations, offering a comprehensive range of solutions for various transportation needs. Similarly, the passenger vehicle segment has been focusing on innovation and expanding its electric vehicle portfolio to meet evolving market demands.
For Q4 FY25, Tata Motors reported revenue of ₹119.5K Crore (up 0.4%), EBITDA at ₹16.7K Crore (down 4.1%), PBT (before exceptional items) ₹12.1K Crore (up ₹2.5K Crore), and Automotive Free Cash Flows ₹19.4K Crore (up ₹5.3K Crore) versus the previous year.
The Jaguar Land Rover division demonstrated strong performance during the period. JLR continued its trend of consistent performance, delivering record full year and quarterly profits in a decade.
- Revenue for the quarter was £7.7 billion, down 1.7% YoY, while full-year revenue at £29.0 billion was flat YoY.
- PBT (before exceptional items) in Q4 FY25 was £875 million, up from £661 million in Q4 FY24, and full-year profit before tax was £2.5 billion, up 15% YoY and the best PBT in a decade.
- EBIT margin for the quarter was 10.7%, up 150 bps compared to Q4 FY24, and for the full year was 8.5%, the best Q4 and full year EBIT margin in a decade.
- Revenue: ₹4,39,695 Crore and Profit: ₹28,149 Crore
- Dividend yield was 0.89% in 2024, with a payout ratio reaching 7.61%.
- In Q4 FY25, the company declared a dividend of ₹6, translating to a dividend yield of 0.87%.
- EBITDA is ₹568.37 billion INR, with a current EBITDA margin at 12.08%.
Tata Motors has been actively expanding its portfolio with several significant product launches and technological advancements. The company unveiled its 'Future of Mobility' portfolio, showcasing the greenest, smartest, and most advanced suite of mobility solutions at Bharat Mobility Expo 2025. They announced the All-New Tata Sierra – reimagined for a new era, ready to inspire and lead once again. The company also showcased the Harrier.ev, the most powerful and technologically advanced SUV from the Tata stable, with advanced features like remote summon.
The company has been strengthening its electric vehicle portfolio significantly. Tata Motors has opened bookings for the Harrier.ev, featuring impressive range and loyalty bonuses. The company also targets ₹6,500 Crore under the PLI scheme by FY28, enhancing its EV portfolio. Tata Motors has officially launched the Harrier EV AWD variant priced at ₹28.99 lakh, featuring advanced technology, impressive range, and performance capabilities, setting a new benchmark in the electric SUV market.
At Bharat Mobility Expo 2025, the company showcased 14 smart vehicles, all integrated with ADAS, alongside 6 cutting-edge intelligent solutions that provide real-time performance insights, and 4 advanced aggregates, including:
- Prima E.55S: Battery electric prime mover to decarbonize logistics operations across sectors.
- Prima H.28: Indigenously developed H2 ICE truck with a range of ~550km.
- Prima G.55S: India's first LNG prime mover with an unmatched range of up to 2400km.
Tata Motors Q1 FY26 sales were 2.10 lakh units, with CV down 6%, PV down 10%, but EV sales up 12%, with new product launches noted. Tata Motors achieved total sales of 2,10,415 units in Q1 FY 2026 compared to 2,29,891 units in Q1 FY 2025, recording a decline of 8%. Domestic sales dropped 10% to 2,03,411 units in Q1 FY 2026 over the corresponding quarter of the previous year.
In March 2024, the company's board of directors approved a proposal to demerge the company into two distinct listed entities – with one company focusing on its commercial vehicles (CV) business while the other entity will operate its passenger vehicles arm, which includes the electric vehicles (EV) division. HDFC Securities anticipates NCLT approval for its demerger plan by Q2 FY2026.
The company faces several global challenges but remains strategically positioned for growth. On May 8, 2025, the company welcomed the positive announcement of a US-UK trade deal. This reduces US trade tariffs on UK auto exports to the US from 27.5% to 10%, within a quota of 100,000 vehicles. This deal brings greater certainty for the sector and stakeholders.
The company noted that tariffs and related geo-political actions are making the operating environment uncertain and challenging. The global premium luxury segment and Indian domestic markets are expected to weather this relatively better.
Tata Motors continues to focus on its transformation strategy while maintaining its position as one of India's leading automobile manufacturers with a strong global presence across multiple vehicle segments and a growing emphasis on sustainable mobility solutions.
