Tata Motors on track to zero net debt by FY24: Chandrasekaran
Tata Motors, which now operates as three independent business units, is expected to become a near-net-debt auto company by FY24.
“Each of these businesses is self-sustaining, which gives me confidence that we will achieve near-zero net automotive debt by FY24,” Tata Motors Chairman and Non-Executive Director N Chandrasekaran said in the annual report. of the company for FY22.Tata Motors now operates as three independent business units – commercial vehicles (CV), passenger vehicles (PV) and Jaguar Land Rover (JLR) – delivering differentiated value propositions to customers, while leveraging Leverage backend and business synergies where possible. “It has made Tata Motors leaner, nimble and customer-centric,” he added.
The company’s auto net debt including leases increased to 48,679 crore in FY22 from 40,876 crore in FY21 and 48,282 crore in FY20. operationalize two subsidiaries – Tata Motors Passenger Vehicles, to focus on passenger vehicles powered by internal combustion engines, and Tata Passenger Electric Mobility, to focus on accelerating the electric passenger vehicle business.
“Fiscal 2022 was a busy year for your business as it overcame these challenges (global pandemic, military conflict, and supply chain shortages, among others) to successfully strengthen business fundamentals,” said said Chandrasekaran, chairman of Tata Sons. , the Tata Group’s investment holding company, said. We are committed to restoring the profitability of this business as it returns to competitive growth and inflation stabilizes,” he added.
According to Shailesh Chandra, Managing Director, Tata Motors PV and Tata Passenger Electric Mobility, “FY22 was another challenging year for the passenger vehicle industry. Returning to a growth path in FY22 after two years of decline, the sector’s wholesale trade grew only 13% from FY21 and retail trade remained flat compared to FY21.” According to JLR CEO Thierry Bolloré, as of the end of March 2022, the company has received more than 45,500 customer orders for its new Range Rover, and the company expects this demand remains strong.
“And as we work tirelessly to relaunch Jaguar as a modern all-electric luxury brand from 2025, I can assure you that we are absolutely on the right track,” Bolloré added.