Tata Motors Making Products Accessibility Simpler From making financing solutions easier for its customers to making investments across brands; the company is dedicated to improve mass penetration
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From recording a whopping 222 per cent growth in profit to making financing solutions easier for its customers, Tata Motors is on a spree to make its products more accessible for the masses.
In a bid to improve options and ease of financing for the dealers, Tata Motors Passenger Vehicles (TMPV) and Tata Passenger Electric Mobility (TPEM) – subsidiaries of Tata Motors, have joined hands with Bajaj Finance to extend supply chain finance solutions to its passenger and electric vehicle dealers. Through this memorandum of understanding (MoU), will help dealers of TMPV and TPEM access funding with minimal collateral. Additionally, Tata Motors has signed an MoU with South Indian Bank to offer convenient financing solutions to its commercial vehicle customers and dealerships. South Indian Bank will offer financing across the entire commercial vehicle portfolio, the alliance represents a significant stride towards providing enhanced support to dealerships, fostering growth, minimizing collateral requirements, lowering rate of interest and streamlining credit processing. Easy access to financing solutions is one of the key priorities for smooth operations.
These financial solutions are also aligned with the company's growth trajectory, in the Q4FY24, Tata Motors recorded net profit of INR 17,407.18 crore. This was a 222 per cent growth in profit compared to INR 5,407.79 crore reported during the same period last year. In FY24, total consolidated revenue from operations stood at INR 4,37,927.77 crore as compared to INR 3,45,966.97 crore in FY23. Tata Motors Group Chief Financial Officer, PB Balaji said in FY24 the Tata Motors Group delivered its highest-ever revenues, profits, and free cash flows. "The India business is now debt-free, and we are on track to become net automotive debt-free on a consolidated basis in FY25. The businesses are executing well on their distinct strategies and therefore, we are confident of sustaining this strong performance in the coming years," the CFO said.
The company has also reversed age-old events of the car industry– the most popular car in India is no more a Maruti–Tata Motors Punch sold 19,158 units compared to Suzuki WagonR's 17,850 in April 2024. The Punch has emerged as the highest-selling model for two months in succession, it was on top of the sales charts in March 2024 with 17,547 units sold.
It has set extensive investment plans for the fiscal year 2025 with an overall outlay of INR 43,000 crore, with the major portion being reserved for Jaguar Land Rover, according to a PTI report. In FY24, investment was INR 41,200 crore, the major share for JLR was around INR 33,000 crore, while Tata Motors was around INR 8000 crore. JLR's revenues for FY24 were 29 billion pounds, its highest-ever full-year revenue and up 27 per cent compared to the prior year, while PAT for FY24 was 2.6 billion pounds.
In the electric vehicle front, the car maker has sold 73,800 EVs during the year, marking a 48 per cent increase as compared to FY23. It has also crossed a milestone of 1.5 lakh cumulative EV production.
Looking ahead, the company will continue to focus on brand activation to maintain order books. It expects EBIT margins in FY25 to be around the FY24 level and aims for a modest increase in investment spend to £3.5b but still expects to become net debt zero during FY25.
