Tata Motors to invest ₹40,000cr in India
What's the story
Tata Group has announced its ambitious plan to grow its automotive business into a $100 billion entity by FY31. The company will invest ₹40,000 crore in its domestic passenger vehicle business and about £20 billion for Jaguar Land Rover (JLR) over the next five years. The announcement was made by Tata Group Chairman N Chandrasekaran at the annual general meeting of Tata Motors Passenger Vehicles.
Revenue goals
Combined revenue target of $60 billion in next 5 years
Chandrasekaran revealed that Tata Motors Passenger Vehicles and JLR are targeting a combined revenue of $60 billion over the next five years. He said, "The next five years...the Tata Motors Passenger Vehicles company, including Jaguar Land Rover (JLR), will target a sale of $60 billion with JLR contributing about $45-50 billion and Tata Motors, domestic business, contributing about $15 billion."
Profit projection
Projected combined profit from passenger vehicle and JLR
The combined profit from the passenger vehicle business and JLR is expected to exceed $5 billion. When combined with the commercial vehicle business, which has a revenue target of $40 billion, Tata Group's overall automotive business is projected to reach $100 billion. Chandrasekaran also said that Tata Motors aims to retain its leadership position in the electric vehicle (EV) segment with a target of 40-45% market share. The company's current EV market share stands at around 42%.