Tata Motors Plans INR 43k Crore Investment in Future Technologies

What was the investment guidance that Tata Motors group had given for FY24 for Jaguar Land Rover and Tata Motors? It had furnished guidance of investing 3 billion pounds for JLR, which was roughly INR 30,000 crore, and INR 8,000 crore for Tata Motors, making a total of INR 38,000 crore.

Tata Motors group aims to increase its outlay for new products and technologies for the financial year 2024-25 to INR 43000 crore from the previously planned INR 24000 crore, according to a senior official. This investment would mostly be for its UK unit, the Jaguar Land Rover. Tata Motors stated that during FY24, Tata Motors would invest about 3 billion pounds in Jaguar Land Rover and INR 8,000 crore for Tata Motors, which would sum up to about INR 38,000 crore.

“In investment, JLR finished at 3. 3 billion pounds, and Tata Motors did more than 8200 crore rupees.

Thus, the total we ended was around 41200 crore in FY24″ Tata Motors Group CFO PB Balaji said in an earnings conference.

For FY25, he elaborated that for JLR, it will be more like ‘3. 5 billion pounds or about INR 35,000 crore, but that is because all the product plans are coming together next year’.

He further said: ‘There is a delivery timing that we are racing to meet, and these products have to be in the market at the stipulated time”.

In relation to INR 8,000-odd crore for Tata Motors, Balaji concluded that the investment for FY25 will be the same as JLR and will increase by 6 percent as to Tata Motors.

In the interview, he reiterated that the investment covers JLR’s products and technologies as well as Tata Motors’s.

Speaking about the 9-to-12-month sustained new product launch plan, Jaguar Land Rover COO Richard Molyneux stated: “FY2026 is the year where our new product hits the marketplace with the Range Rover BEV coming on to the market and other products as well.

That will allow us to replace some of those products on which we make lower EBIT than the value that we have, and that tends typically to help boost E.

When asked about the Range Rover’s BEV, he noted, ‘We are doing it differently. This is not a BEV, but it is going to be sold as a Range Rover. It is the Range Rover with a BEV powertrain.

Molyneux also explained that BEV offers the ideal power, silence, and tranquility to complement the specifications of Range Rover vehicles, making it the superior model of the Range Rover brand.

He also said that the OEM would continue to upgrade the products on the Range Rover and Range Rover Sport models, and the Defender OCTA would be launched by the end of 2022.