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Mint
6 minutes ago
- Automotive
- Mint
At Tata Motors AGM, Chandrasekaran pays homage to Air India plane crash victims
New Delhi, Jun 20 (PTI) Tata Motors Chairman N Chandrasekaran on Friday led the management and the company's shareholders in paying homage to the victims of the Air India plane crash by observing a one-minute silence at the company's 80th annual general meeting (AGM) here. Chandrasekaran, who is also chairman of Tata Sons, stated that the Tata Group will miss out its former chairman Ratan Tata, who died last year. This was the first AGM of a Tata Group company that Chandrasekaran has attended since the June 12 plane crash. He had not attended the AGMs of two other group companies -- TCS and TCPL -- which took place earlier this week. Chandrasekaran said: "Going forward, volatility will continue to mark economic cycles -- from widespread geopolitical conflicts, military escalations, the redrawing of supply chains and tariff regimes, to AI and energy transition. Nowhere are all these disruptions visible more than in the automotive sector." "...Now I would like to share a few thoughts. There is a lot to talk about today. First thought I would like us to begin with a moment of silence to honour those who lost their lives, along with all the families and loved ones affected by Air India flight (AI)171 tragedy," he said in his address to the shareholders. The London-bound Air India flight AI-171 carrying 242 passengers and crew members crashed in Ahmedabad on June 12. All but one on board the plane died along with 29 on the ground when the aircraft smashed into a medical complex in the Meghaninagar area of the city shortly after its take-off. After observing one-minute silence, Chandrasekaran resumed his address and said, "My thoughts are with them, and I know yours are too. "This has been a long and unsettling week for all of us as a nation, as a Group, and at a very human level, navigating an enormous gulf of sorrow, grief and uncertainty all at the same time." The last few months have been full of loss, he said, adding, "Late last year, we bid farewell to Mr Ratan Tata, under whose hand the Group expanded while staying true to its values." "He was a friend and someone whose guidance I sought, whose humanity I admired and whose focus on the importance of details I will always carry with me. He will be dearly missed," the Tata Group Chairman said. Stating that the company's demerging process was underway, he said (post merger) we will be operating as two independent listed companies -- one with commercial vehicles and one with passenger vehicles and JLR -- by the end of this calendar year. "Over the past few years, we have significantly strengthened, streamlined and simplified this business. Each business -- commercial vehicles, passenger vehicles and JLR -- are healthy, financially fit and have their own strategy, led by independent management teams," Chandrasekaran said. Taking the three businesses (CV, PV and JLR) together, Tata Motors delivered a strong performance to surpass several earlier milestones, despite a complex macro environment in FY25, he said. On a consolidated basis, the company delivered a record high revenue of ₹ 4,39,695 crore, EBITDA of ₹ 57,649 crore, and record high PBT (before exceptional items) of ₹ 34,330 crore leading to the Tata Motors Group becoming debt free this year, Chandrasekaran said. "I had the opportunity to update Mr. Tata about Tata Motors and the PV business turnaround and growth. He was most pleased as Tata Motors was closest to his heart," he said. The Board has recommended a final dividend of ₹ 6 per ordinary share for FY25 subject to the shareholders' approval at the AGM, he said. "Given the enormous amount of work we have done over the past few years -- from simplifying the businesses to making big strategic bets to strengthening our financial position -- our businesses are structured to not just handle this environment, but to thrive," Chandrasekatran said.
Economic Times
a day ago
- Automotive
- Economic Times
Add Tata Motors, target price Rs 775: ICICI Securities
Agencies Jaguar Land Rover (JLR) revised its FY26 EBIT margin guidance from 10% previously to a range of 5-7% now also lower vs. the 8.5% margin delivered in FY25. In the near to medium term, the company is facing challenges including currency volatility, elevated capex (GBP 3.8bn in FY26 vs GBP 3.2bn in FY25), higher working capital requirement and product transition related costs. In FY26, the company expects its FCF to decline to near-zero, compared to GBP 1.5bn in FY25, with improvement in FY27 and FY28 based on new model ramp up. Investment Rationale (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel ICICI Securities has maintained the Add call on Tata Motors . with an unchanged target price of Rs 775.0. The current market price of Tata Motors Ltd. is Rs 678.85 .Jaguar Land Rover (JLR) revised its FY26 EBIT margin guidance from 10% previously to a range of 5-7% now also lower vs. the 8.5% margin delivered in FY25. In the near to medium term, the company is facing challenges including currency volatility, elevated capex (GBP 3.8bn in FY26 vs GBP 3.2bn in FY25), higher working capital requirement and product transition related costs. In FY26, the company expects its FCF to decline to near-zero, compared to GBP 1.5bn in FY25, with improvement in FY27 and FY28 based on new model ramp Land Rover hosted its Investor Day on 16 Jun?25. The company guided for 5-7% EBIT margin for FY26 (vs.8.5% in FY25). In the US, the company is taking measures including reallocating vehicles to more accessible markets and pricing actions, to help counter the impact from tariffs. We expect near-term performance in JLR to be strained amid US tariff-related uncertainties, and weak demand trends in China. JLR expects its FCF to decline to near-zero in FY26 (compared to GBP 1.5bn in FY25), before improving YoY in FY27 and FY28, as the new models ramp up. For its domestic business, Tata Motors is focusing on regaining growth momentum via new launches and on margin expansion. ICICI Securities maintains ADD with an SoTP-based target price of Rs 775 (unchanged), implying 11x/2x FY27E India/JLR EV/EBITDA. (Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
Time of India
a day ago
- Automotive
- Time of India
Add Tata Motors, target price Rs 775: ICICI Securities
ICICI Securities has maintained the Add call on Tata Motors . with an unchanged target price of Rs 775.0. The current market price of Tata Motors Ltd. is Rs 678.85 . Jaguar Land Rover (JLR) revised its FY26 EBIT margin guidance from 10% previously to a range of 5-7% now also lower vs. the 8.5% margin delivered in FY25. In the near to medium term, the company is facing challenges including currency volatility, elevated capex (GBP 3.8bn in FY26 vs GBP 3.2bn in FY25), higher working capital requirement and product transition related costs. In FY26, the company expects its FCF to decline to near-zero, compared to GBP 1.5bn in FY25, with improvement in FY27 and FY28 based on new model ramp up. Investment Rationale Jaguar Land Rover hosted its Investor Day on 16 Jun?25. The company guided for 5-7% EBIT margin for FY26 (vs.8.5% in FY25). In the US, the company is taking measures including reallocating vehicles to more accessible markets and pricing actions, to help counter the impact from tariffs. We expect near-term performance in JLR to be strained amid US tariff-related uncertainties, and weak demand trends in China. JLR expects its FCF to decline to near-zero in FY26 (compared to GBP 1.5bn in FY25), before improving YoY in FY27 and FY28, as the new models ramp up. For its domestic business, Tata Motors is focusing on regaining growth momentum via new launches and on margin expansion. ICICI Securities maintains ADD with an SoTP-based target price of Rs 775 (unchanged), implying 11x/2x FY27E India/JLR EV/EBITDA.
Mint
3 days ago
- Automotive
- Mint
Tata's Agratas targets FY2027 to begin cell production in UK, clarifies timeline
Tata Group's battery business Agratas expects to begin production of lithium-ion batteries needed to power electric vehicles in the UK by the 2027 financial year. The Mumbai-based conglomerate is looking to reduce dependence on China for the critical component. In 2024, Agratas announced that it would commence the production of batteries in 2026 in the UK. Despite two analyst notes suggesting that the production at the plants will begin by 2027, a Tata spokesperson clarified that the project remains on track to meet its deadlines. Also read: China's shadow looms large as Tata Motors, JLR flag EV supply chain risk 'The project to set up giga factories in India and UK is on track and will commence operations from FY27 in a phased manner," a Tata Motors spokesperson said. Analysts at Nuvama Institutional Equities and Motilal Oswal Financial Services wrote in their respective notes on 16 June, after meeting the management of Jaguar Land Rover during its investor day, that the production of EV batteries at the UK plant will begin by 2027. 'In the battery space, JLR has partnered with group company Agratas, which is constructing the UK's largest EV battery plant—to be operational by CY27E," Nuvama analysts wrote. In 2024, Agratas announced that it would build a 40 GwH electric battery manufacturing plant in Somerset, UK. The firm is also building a 20GWh plant in Sanand, Gujarat, through Agratas, which is expected to begin production by December 2026. 'Construction will be completed in phases, with battery production set to begin in 2026," an Agratas statement on 28 February 2024. The company has not specified the month in which it will begin production at the UK plant so far. With both Tata Motors and its wholly-owned subsidiary JLR flagging the threat of disruption to their electric vehicle supply chain in their annual reports, the construction of the battery plant by Agratas is listed as one of the mitigation measures to deal with the risks of China currently holding a large share of the lithium-ion battery supply chain. Also read: Tata Motors plans a premium push as competition intensifies in EV space In FY2024, Tata Group's holding company, Tata Sons, invested ₹950 crore in Agratas, which was founded in 2023. In the battery company's 2024 annual report, the management acknowledged the 'strategic importance of obtaining a secure supply of battery cells to power electric vehicles sold in the future". 'The investment in the company is of critical importance to Tata Sons," the annual report said. JLR is planning to make Jaguar an all-electric brand by 2026, while Tata Motors is the largest seller of electric cars in the country. Last fiscal year, it sold close to 65,000 EVs in the country, holding a 55% market share in the country's electric passenger vehicle market. Both JLR and Tata Motors are facing headwinds in terms of uncertainty in the global trade markets and competition in the domestic market. Tata Motors' market share has come under intense pressure from domestic firms such as Mahindra and Mahindra, JSW MG Motor and Hyundai Motor India. JLR cut its operating profit margin guidance to 5-7% from the earlier stated 10% due to the imposition of increased tariffs in the US and the slowdown in the Chinese market. The risk of concentration of the supply chain also comes at a time when automobile companies in the country are facing restrictions on exports of rare earth magnets by China. Also read: Tata Motors' headcount, senior pay hikes squeezed as sales dip in FY25 According to some industry estimates, China holds about 80% of the market for lithium-ion batteries and 90% of the supply of rare earth magnets to companies worldwide. Several companies in the country are building gigafactories to produce lithium-ion batteries locally. In addition to the Tata Group, other companies include Reliance, Ola Electric and Rajesh Exports. These three companies received approval to build gigafactories under the ₹18,100 crore production-linked incentive scheme but are facing delays. Due to the delay in commencing production and setting up operations, all three face the prospect of fines. The government had set a two-year milestone to invest ₹225 crore per GwH, which the players committed to building. Primarily, the players have cited the issues with sourcing raw material required to begin battery production.
Top Gear
3 days ago
- Automotive
- Top Gear
The US and UK have signed an agreement for a 10 per cent tariff on car imports
Business The reduced tariff now applies to the first 100,000 British-made cars imported into the States, but other details are missing Skip 1 photos in the image carousel and continue reading President Trump has officially signed an executive order giving the UK a more favourable 10 per cent tariff on car imports. Though, some bits and pieces are yet to be confirmed. More on that shortly. In broad terms, the tariff applies to the first 100,000 British-made vehicles imported by the USA. Now ratified, carmakers can begin to undo the temporary suspensions of their shipments and send stuff across the Atlantic again. The sighs from JLR, counting the US as its biggest market, are especially audible. Advertisement - Page continues below "We welcome the signing of the UK-US deal," the carmaker told "which gives a good level of relief from the steep and sudden US tariffs applied to the UK auto sector in April. We thank both governments and their teams for their work in bringing this deal about." SMMT boss Mike Hawes said: 'This is great news for the UK automotive industry, helping the sector avoid the severest level of tariffs and enabling many manufacturers to resume deliveries imminently.' You might like But it's not all gravy yet. There are still details to be announced 'in coming weeks' according to President Trump. They include confirmation of the tariff on steel and aluminium (a handshake agreement in principle is that the tariff will drop to zero). What's more, EU vehicles – for example, the Mini Countryman built in Germany – will still be liable for the higher 25 per cent blanket tariff. Ouch. Hawes added: 'We wait to see the full details of the deal and how it will be administered but this will be a huge reassurance to those that work in the sector and bolster the confidence of our important US customers. Advertisement - Page continues below "The fact the UK has secured a deal, ahead of many competitors, and which makes automotive a priority, should be recognised as a significant achievement.' Looking for more from the USA? Thank you for subscribing to our newsletter. Look out for your regular round-up of news, reviews and offers in your inbox. Get all the latest news, reviews and exclusives, direct to your inbox.
