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Informist, Thursday, May 14, 2026

 

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--CONTEXT: Tata Motors PV mgmt's comments at post-earnings press conference
--Tata Motors PV: Aim to beat industry in terms of PV sales growth in FY27
--Tata Motors PV: To consider price hikes, but will try to protect growth
--Tata Motors PV: Memory chip issue has not impacted us
--Tata Motors PV: Faced at least 5% rise in commodity inflation over 9-12 mos
--Tata Motors PV: No immediate need to add hybrid powertrain to portfolio
--Tata Motors PV: To be ready with at least 1 flex fuel car by end of yr
--Tata Motors PV: Optimistic on EVs, enquiries have jumped since Mar
--Tata Motors PV: Plan to spend at least 6-8% of revenue on capex this yr

 

MUMBAI/NEW DELHI – Jaguar Land Rover, the UK-based wholly owned subsidiary of Tata Motors Passenger Vehicles Ltd., said Thursday that its ability to generate cash per unit sold has fallen due to tariffs imposed by the Trump administration and other factors. This, coupled with its investment programme for new products, has affected the company's break-even levels. "Yes, our break-even (level) has risen above levels that we were at in 2023," JLR's Chief Financial Officer Richard Molyneux told Informist in a post-earnings media call.

 

"Our intent is to bring it back down towards 300,000 as quickly as we possibly can within two years by focusing on the growth of the revenue side and cost control on the amount that we need to cover in terms of structural costs," Molyneux said. Its current break-even levels are around 380,000 JLR cars per year.

 

The gradual recovery of JLR's operations was key to Tata Motors PV's quarterly performance. For the March quarter, Tata Motors PV reported a consolidated net profit of INR 57.83 billion on revenues of INR 1.05 trillion. 

 

The demand for JLR cars has not been affected by the war in West Asia, Molyneux said. "I think on the supply side, it's a little bit more certain that we will see import price inflation. That's going to happen either directly through utility costs and rate costs, or by the many components that are sent into petrochemical products. So that I think is definitely coming," he said.

 

The demand for JLR cars in North America is holding up well, while it has been "OK" in the UK and Europe. The company operates in China through Chery Jaguar Land Rover, a 50:50 joint venture established in 2012 between JLR and China's Chery Automobile. While demand in China was affected by structural issues in recent quarters, Molyneux said demand there is stabilising now.  

 

The war in West Asia has not impacted the performance of Tata Motors PV in India either. The company reported wholesale sales of 147,000 cars in the March quarter, up 37% on year.

 

"Demand momentum for the industry has sustained throughout April and May 2026. That said, all OEMs (original equipment manufacturers) will need to closely monitor the geopolitics to mitigate any adverse impacts," Shailesh Chandra, managing director and chief executive officer of Tata Motors PV, said. The company aims to outperform the industry in 2026-27 (Apr-Mar). 

 

On commodity costs, Chandra said Tata Motors PV's India business saw commodity prices increase by about 5% over the last 9-12 months, if not higher. "So clearly, this is a very tough situation for us... it will remain a bit volatile going forward also," Chandra said.

 

The company will focus on cost-reduction measures and a richer product mix to offset these pressures. While the company will "actively" consider price hikes in the coming months, it will also look to protect customers' value equation, Chandra said. Tata Motors PV, the market leader in electric cars, has not been impacted by the memory chip shortage.

 

The ongoing war has not affected the company's capital expenditure plans either. Tata Motors PV will likely spend 6-8% of its revenue towards capital expenditure. "Since we are going on a more aggressive path (in terms of sales and production), it can be 1% higher than that," Chandra said.

 

GREEN CARS

Asked whether Tata Motors PV will roll out cars with hybrid powertrains, Chandra said the company is ready, technology-wise. "Whenever the timing requires us to launch it more for market reasons, we will do that. We are capable of doing it. But as of now, there is no hurry to bring a hybrid," he said, adding that it is mainly required to comply with emission norms, especially by companies that no longer offer diesel cars.

 

Around 43% of the cars sold by Tata Motors PV are now either fuelled by compressed natural gas or electricity. The company is planning to launch at least one flex-fuel-compliant car by the end of this year or early next year, Chandra said. 

 

Thursday, Tata Motors PV's shares closed 0.6% higher at INR 338.75 on the National Stock Exchange.  End

 

Reported by Anand JC and Gunjan Rajput

Edited by Saji George Titus

 

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