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Informist, Thursday, Aug. 13, 2026

 

--Tata Motors PV: Q1 was strong for EVs, festive period seen stronger
--Tata Motors PV: New JLR launches to drive growth in short-medium term
--Tata Motors PV: Waiting period for co's portfolio 4-6 weeks now
--Tata Motors PV:Expect PV industry to grow 15-20% YoY Q2 on low base
--Tata Motors PV: No change in capex plans despite input cost rise
--Tata Motors PV: Will consider calibrated price hikes as costs still high
--Tata Motors PV: Demand for cars significantly higher than current supplies
--Tata Motors PV: Have not collected any data on E20 contamination
--CONTEXT: Comments by Tata Motors PV mgmt in post-earnings press conference
--Tata Motors PV:Operating environment remains challenging on cost inflation
 

MUMBAI – Jaguar Land Rover Automotive PLC, the UK-based luxury car arm of Tata Motors Passenger Vehicles Ltd., hopes that its four new car launches in the coming months – Range Rover Electric, Range Rover Sport Electric, Range Rover GT, and Jaguar Type 01 – will drive its growth in the short-to-medium term following multiple quarters of intense pressure on its bottom line due to a host of issues such as a crippling cyber attack, sustained commodity cost pressures, and supply chain constraints. "They (the new cars) won't have a massive impact on FY27 wholesales, they will have a major impact from that point in time," JLR's Chief Financial Officer Richard Molyneux told Informist in a post-earnings press call.  

 

JLR contributes roughly 80% to the consolidated profitability of Tata Motors PV. For the June quarter, its revenue barely grew on year, but in pounds sterling terms, it slump almost 10% – similar to its wholesale sales during the period. In a positive sign, the share of its ultra-premium models such as the Range Rover, Range Rover Sport, and Defender, improved to almost 81% from 77%% a year ago.

 

"In terms of mix in the first quarter, yes, it (share of premiums cars) did help offset some of the volume decline," Molyneux told Informist. These models helped offset about half of the fall in wholesale sales, a ratio the company expects to continue going forward. "Q1 is typically our weakest quarter, both in terms of sales and also particularly in terms of cash. We expect all subsequent quarters to be an improvement," he said.

 

ELECTRIC SUCCESS

Tata Motors PV leads India's electric car market, with a share of around 43%. Currently, demand for electric vehicles is quite strong, the company said, adding that it expects the growth to continue during the upcoming festive period as well. Demand for electric cars saw strong growth since late February, when the war between US and Iran broke out. 

 

"The demand for us has jumped three times of what it used to be, three, three and a half times now, of what it used to be, say, in February. So that is the level of demand we are seeing. And there are more players coming into this market with new products," Tata Motors PV's Managing Director and Chief Executive Officer Shailesh Chandra said. Supply remains the only constraint when it comes to unleashing the potential of electric vehicles fully, Chandra said.

 

In the June quarter, roughly 24% of the company's sales came from electric vehicles. "In fact, in July, we were at 24%, and we have a strong EV orderbook as we scale up production," Chandra said.

 

COSTLY INPUTS

The company highlighted that despite the strong demand for cars in India, the operating environment is challenging because of significant inflation in commodity prices. Tata Motors PV hiked prices of its cars by 4.5% in the June quarter, and plans to take more in the coming months. 

 

"In the car industry, you don't immediately pass on these increases because there is always an attempt to do aggressive cost reduction. As well as, then you, even if you have to go for price increases, this will be more gradual, more calibrated. And that is the approach we are going to follow," Chandra said.  

 

Tata Motors PV expects all of Apr-Sept to be "significantly" bad as far as commodity prices are concerned. The company will rely on cost reduction as the first defence against rising commodity costs. "Of course, we will be considering calibrated and progressive price increase also because commodity situation is really unprecedented, seen in Q1; Q2 also we expect this to be severe," Chandra said. 

 

SALES BOOST

The performance of Tata Motors-branded cars has been the silver lining for the company even as JLR goes through its slump. Given the high demand for its cars, the company has a waiting period of four-six weeks across its portfolio. Overall, the company said it is seeing significantly higher demand than supplies, giving it the confidence to continue with its capital expenditure plan of around 6–8% of its revenue.

 

Tata Motors PV has a 'fungible' production line, which means it can produce conventional cars and electric cars on the same lines. The company can currently make over 15,000 electric cars per month, up from 9,000 a few months back. "This is going to further ramp up in the coming months. So, we are continuously ramping up our capacities because our demand is significantly higher than what we are right now supplying," Chandra said.

 

Tata Motors PV expects car sales to grow 15–20% in the ongoing September quarter, aided by a low base from last year. In Oct-Mar, the industry is expected to see a higher base weighing on overall growth. "But I also believe that since the inventory levels are much lower as compared to what it was last financial year, there is significant scope for still a sustained growth in H2, but it would be less than 10%," Chandra said. 

 

ETHANOL WORRIES

Amid the ongoing brouhaha about contamination of E20 blended fuel, Tata Motors PV said it has not conducted a study at the company-level to check for presence of chloride or moisture. "The data has been provided by a few OEMs. But I can confirm that Tata Motors has not been among them who has collected any data of this nature. Nor we have faced any or have got any report from the field about failures coming out of this kind of a contamination," Chandra said.

 

Tata Motors PV reported its June quarter financials after the market closed. It reported a consolidated net profit of INR 7.75 billion on revenue of INR 957.99 billion. On Thursday, its shares ended 1.9% higher at INR 349.60 on the National Stock Exchange.  End

 

Reported by Anand JC and Eshitva Prakash

Edited by Avishek Dutta

 

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