Tata Motors says change of group chairman won't affect investment plans
India’s Tata Motors Passenger Vehicles said on Thursday its investment spending will not change following the exit of parent Tata Sons’ Chairman N. Chandrasekaran, as the carmaker reported an 80% slide in first-quarter earnings. Tata Motors is the first company in the Tata group to comment on its future plans after Chandrasekaran, 63, said on Wednesday he will not seek reappointment as chairman…
Tata Motors, a subsidiary of the sprawling Tata group, announced on Thursday that its investment plans will remain unchanged following the voluntary departure of N. Chandrasekaran, the chairman of Tata Sons. The company reported an 80% decline in first-quarter earnings, attributed to supply chain issues at its Jaguar Land Rover (JLR) unit and escalating raw material costs.
Tata Motors is the first entity within the Tata group to comment on its future strategy following Chandrasekaran's decision not to seek reappointment as chairman of Tata Sons, citing the board's lack of support amidst tensions with the charitable arm that oversees the group.
Shailesh Chandra, MD and CEO of Tata Motors, expressed confidence in the company's strategy and management team during a post-earnings call. He emphasized that the organization remains focused on driving growth and creating sustained value for stakeholders. The automaker had previously announced plans to invest between 330 billion and 350 billion rupees in its passenger and electric vehicle businesses over the fiscal years 2026 to 2030.
Chandra highlighted the challenges the company faced in the first quarter due to supply constraints at JLR and rising costs of raw materials. He warned that cost pressures are expected to persist through the second quarter. The firm also projected higher commodity prices to continue affecting margins until the end of September. Despite these headwinds, Tata Motors reiterated its target of achieving £1.7 billion ($2.29 billion) in cost savings at JLR within the next two years.
In the domestic Indian market, Tata Motors' sales of popular SUV models such as Nexa and Punch experienced a robust 48% increase year-over-year in the first quarter, ending June 30. This growth was propelled by strong demand for newly launched models and electric vehicles. The company's total quarterly revenue reached 957.99 billion rupees, surpassing the previous year's 876.77 billion rupees. Analysts had anticipated quarterly revenue of 934.28 billion rupees, based on data compiled by LSEG.
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