Tata Motors Passenger Vehicles (500570) Investor Day 2025 summary

Financial performance and guidance

• Achieved record revenue of ₹75,000 crore in FY25, with EBITDA at 11.8%, EBIT at 9.1%, and net automotive debt turning net cash positive.

• Highest-ever PBT of ₹6,600 crore, cash flow of ₹7,400 crore, and strong ROCE at 38%.

• Credit ratings improved across agencies, reflecting financial strength and deleveraging.

• CapEx remains disciplined at 2%-4% of revenue, focusing on new products and technologies.

• Guidance to maintain teens EBITDA, 7%-9% post-tax free cash flow, and high ROCE.

Strategic priorities and business transformation

• Shifted from market share at any cost to profitable growth, focusing on demand-pull and working capital management.

• Downstream and digital businesses now contribute 17% of revenue, targeting 20%+ soon.

• Demerger to create two listed entities: Tata Motors Limited (CV) and Tata Motors Passenger Vehicles Limited (PV/EV), with equal shareholding and asset split (60:40 PV:CV).

• Demerger aims to unlock shareholder value, sharpen focus, and enable efficient capital allocation.

• Both businesses to leverage Tata Group synergies, maintain collaborative culture, and focus on digital, AI, and high-performance post-demerger.

Commercial vehicles (CV) outlook and initiatives

• CV industry expected to grow at 3%-5% CAGR over next five years, with revenue CAGR of 7%.

• Targeting 40% CV market share and teens EBITDA by 2027, with 7-9% FCF of revenue and sustained high ROCE.

• Focus on profitable growth in trucks, electrification in buses, and regaining SCV market share.

• International business to double CAGR, expanding into ASEAN, LATAM, and Eastern Europe.

• Over 800,000 connected vehicles on Fleet Edge platform, driving customer productivity and insights.