Q3 2025 Tata Motors Ltd Earnings Call
Shailesh Chandra
Speaker Change: Good day and welcome to Tata Motors Q3 FY20 Fair Earnings Call. Today with us are Mr. P V Balaji, Group CFO, Tata Motors. Mr. Girish Wagh, Executive Director, Tata Motors.
Speaker Change: Mr. Shailesh Chandra, MD Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd.
Mr. G. V. Ramanan, Vice President, Finance, Tata Motors Ltd.
Speaker Change: Mr. Dhiman Gupta, Vice President Finance, Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd.
Adrian Mardel: Mr. Adrian Mardel, CEO, Jaguar Land Rover, Mr. Richard Molyneux, CFO, Jaguar Land Rover and we also have our colleagues from the investor relations team.
Speaker Change: Today, we plan to walk you through the results presentation followed by Q&A.
Speaker Change: As a reminder, all participants will be in lesson only mode and we will be taking questions via the Teams platform. The stream is already open for you to submit the questions. You are requested to mention your name and the name of the organization while submitting the questions. I now hand over to Balaji sir to take over, over to you sir.
Thanks Anish. Welcome everybody.
Speaker Change: The only, I just draw your attention to the reported EBITDA number definition that is out there.
Speaker Change: were aligning with the TTL accounting treatment on the particular transaction of the BMW that was there. So just draw your attention on the EBITDA. Any clarifications, feel free to reach out to the Investor Relations team.
Next slide, please.
Speaker Change: and people who are there witnessed a fair amount of action both on the CV side and the PV side.
Substantial amount of alternate powertrains.
Particularly on the AVs that we have put out.
Speaker Change: and a lot of intelligent solutions that have components that were also demoed on the CV side.
Speaker Change: And as far as the PV curve side, the standout was the launch of the Tata's all-new Tata Sierra.
Speaker Change: as well as the Harrier EV that is currently there. And of course we showcase the concept, the next concept car on Avenia as well. So a lot of action there, good excitement and the product offensive continues from our side.
Speaker Change: And of course on the JLR side, who would have missed the Jaguar launch and I'm sure Richard and Adrian are going to talk about it in the coming slides as well.
Speaker Change: I'm also on the Range Rover Electric. It's now getting closer and closer to the launch and a very, very exciting launch coming up on that front. Next slide please.
On the numbers side...
Speaker Change: As far as the year is concerned, we are looking at a strong performance for the full year and therefore this quarter was an important one to deliver as far as our internal plans are concerned and overall happy that we managed to deliver on the internal plan that we had guided you towards.
Speaker Change: closing at 19,200 crores and on a year-on-year basis the PBT is now a very strong 22,300 crores up almost 3,000 crores over last year. Next slide please.
Sourcework Brought
Speaker Change: Coming in from Volume Mix, and of course a lot of translation also in that, thanks to the recent Rupee depreciation that we had, as well as Pound versus the Dollar as well.
and overall PBT improvement, JLR contributed handsomely to those numbers.
and a bit going from 8.3 to 8.9% this quarter.
Speaker Change: Net automotive debt is 19,000 crores of which the domestic Indian business is back to net cash at 700 crores
and JLR, the remaining Rs.12,300 and Tata Motors holding Singapore.
Speaker Change: This debt reduction is obviously also translating into a sharp drop as far as the automotive financing cost, interest cost is concerned, both on a gross and net basis.
Speaker Change: and this is reassuring in terms of the more levers coming into play as far as the overall PVT is concerned. Next slide please.
Speaker Change: On the corporate action, before I hand it over to the businesses, the de-merger is progressing well. We are expecting the NOC from the Stock Exchange in Semi any time now, all filed and done. Operational activities are in an advanced stage and progressing as per plan. And therefore we are expecting to have the appointed date as July 1st.
Speaker Change: All goes well in terms of just dates from the Honourable NCRT and effective date likely to be more like October of this year.
Speaker Change: And on products, production linked incentives, PLI, which has been an area of a lot of questions and interest in the last meeting, happy to say that we have received the eligibility certificate. And on that basis, we also, whatever we claimed for last year of 142 crores has been fully received as cash.
and Shailesh Chandra.
Speaker Change: Let me now hand this over to Richard to take you through the JLR performance. Richard, over to you.
Speaker Change: Stop on this chart. This stunning card was certainly one of the highlights of the call set.
Let's move to the numbers. Next shot.
Speaker Change: So the summary for JLR is that Q3 was a solid, robust quarter, delivering in what's a very challenging market environment.
Speaker Change: At £7.5 billion, revenue is the highest Q3 revenue we have ever achieved off a wholesale volume of £104,000.
Speaker Change: DDG also remained strong and we did deliver positive cash flow.
Speaker Change: It's also relevant, however, to the year-to-date numbers in the bottom row of the chart, as Q2 was impacted by a quality hold, and this did benefit Q3. So looking at the bottom half of the chart, wholesales within 1% of last year, revenue marginally up.
Speaker Change: If it is down a point, half a point, but PBT up. Cash flow is materially lower and I'll talk about that specifically on a later chart.
Speaker Change: Shailesh Chandra, Unknown Executive, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard
Thanks, y'all.
Speaker Change: So I won't go through this chart in detail as per usual, all the points that are mentioned on it I'll cover in the following chart that's for your reference.
So, thanks Charles.
So this looks at wholesale performance.
Speaker Change: The narrative here is best also shown in the year-to-date numbers below.
Speaker Change: The wholesales, 290,000 units virtually flat last year, but jagged volumes as we progressively end the existing range did fall by 16,000.
Discovery was flat.
So that compensating gains
are in the higher margin Range Rover brand in particular.
The next chart looks exactly the same.
on a regional basis.
Speaker Change: I won't say performance was solid for most regions, but there are two that stand out.
and Stabilize Our Retailer Network in a Very Tough Market.
Speaker Change: Even with that, year-to-date on wholesales, we're only 4.5% down in China on our import vehicles.
Speaker Change: There have been some homologation and timing benefits in Q3, but year-to-date we're up 25% in the US as our brands continue to really resonate with US clients.
Speaker Change: Shailesh Chandra, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Unknown
Next page.
Speaker Change: So this page takes our profit before tax in the same quarter last year, 6-27, to the profit before tax this quarter of 5-23.
Shailesh Chandra: Shailesh Chandra, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Anish
Shailesh Chandra: As bed sales penetrations in the US slows, impacting the availability of those credits.
Speaker Change: In the next column, VME was up versus last year at 4.2% versus 1.7%. We are not immune to the market conditions, but the real focus on building brand equity does provide some shield.
Speaker Change: and the VNE of Range Rover, Range Rover Sports and Defender is below that average still.
Speaker Change: Shailesh Chandra, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Anish
Speaker Change: In the next column we do have the goal of offsetting DME changes with cost savings which as you can see in the middle column was not the case this quarter. We did have material cost and manufacturing savings of £37 million but we know we need to do more to drive those levels up.
Speaker Change: The big adverse within contribution costs was a significant warranty charge in the court.
Anish Gurav: Anish Gurav, Shailesh Chandra, Girish Wagh, Shailesh Chandra, Richard Molyneux, Anish
Speaker Change: About half of this variance was either mixed, that's more cars sold in the US where warranty costs are high,
Speaker Change: The balance however reflects the fact that although quality is improving and the number of repairs is falling, the type of repairs and the cost to fix them is rising.
Speaker Change: And from an accounting perspective, this has to be reflected in the provision for car switches.
Speaker Change: Offsetting this in the next column within structural cost is lower DNA as we have ceased car manufacture at CB and extended the life of our ICE portfolio.
Speaker Change: So, bottom line, some really strong points in the quarter, but some obvious care points that we're well aware of and very actively tackling.
Thank you all.
Speaker Change: Cash profit after tax remained very strong, second best Q3 ever for JLR and only 6% below the record of 1.24 billion last year.
Speaker Change: So even though investment was higher, and more about the best page, and working capital neutral, free cash flow was under the 87 million.
and 131 million year-to-date.
Speaker Change: This is down on our bumper year last year, and you can see why in the data rows below the graph.
Speaker Change: Investment was 560 million higher as our main product launches now approach and there was 440 million of working capital timing differences that will reverse back out in Q4.
And that's what those timing differences...
free cash flow would have been considerably higher.
Next chart.
Speaker Change: So this looks at investment and investment did peak just over a billion pounds in Q3
Speaker Change: That is largely around timing of the very significant number of prototype builds we have going on at the moment for our EMA architecture, MLA architecture and our JEA architecture but also supplier milestone payments.
Speaker Change: Cumulatively, year to date, we've spent 2.9 billion and I expect Q4 return to at or below half one levels.
Speaker Change: Look at our capitalisation rate in the quarter was 67% which is fairly much in line with H1.
Thank you, Joe.
Speaker Change: GV Ramanan, Anish Gurav, Unknown Executive, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux,
So...
Looking to the future.
Speaker Change: As we look forward, we see a market that is as challenging as it is unpredictable.
Speaker Change: China will remain a theme, less for us about the impact of their bets on our global markets but more in terms of how, when, if, the domestic market and the retailer environment can improve.
Speaker Change: Tariffs and a progressive breakdown of global free trade are a concern as is the disconnect between consumer demand for BEVs and government emission regulations.
We're not standing still on any of these.
Speaker Change: I'll talk about more about China in a minute and we are in very close discussions with for example the UK government on the other points
Speaker Change: But it's also down to us to respond on the cost side to improve our resilience to driving material cost, cost equality and our structural base down. And we're very well aware of this. So if I move to the next chart.
I tend to break even.
Speaker Change: On the left-hand side, we worked very hard to get it down, and we will work equally hard to get it down.
Speaker Change: and this despite an investment peak this year and next. You can see our main focal points on the right-hand side.
Speaker Change: Keep driving grand profitability and top-end offerings. We are, for example, we're in a situation, we've just launched the Defender Octa, we already have six months order cover.
Shailesh Chandra
Speaker Change: We are increasing further our rigour on capital allocation and stopping projects that are meeting hurdle rates.
Speaker Change: We will drive material costs, cost of quality and our footprint down and our focus on after sales profit will be very strong after a year particularly badly hit by warehouse consolidation issues.
Speaker Change: These things are necessary for us to succeed in the world we will face and we are committed to do them.
Next page.
Speaker Change: So, two very specific updates as promised. Jaguar next, but first China.
Speaker Change: China was only 9% of our wholesale mix in Q3, down from 15% last year.
Speaker Change: And this is due to a market, that's the premium ice segments in which we operate, that have been down markedly as you can see on the left hand side in the graphics.
Speaker Change: This along with high discounting, dealer insolvencies and credit availability have all had an effect.
Speaker Change: On balance, our 6% year-to-date retail decline on imported cars doesn't look that bad, although locally produced cars operating in more competitive BEV-impacted segments suffered more, down 27% as you can see.
Shailesh Chandra: Shailesh Chandra, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Unknown
Shailesh Chandra: We focus on responding with speed, with impact. We are supporting retailers by focusing marketing and sales effort on the higher margin Range Rover.
Shailesh Chandra: We have Range Rover retails up 33% in the quarter, and we're also reducing day's supply to lessen discount pressure.
Shailesh Chandra: Our existing local jaguars are coming towards the end of their production and our exciting Freelander launch in 2026.
Shailesh Chandra: There will be new energy vehicles with a China cost base and an amazing market potential.
Next chart.
Speaker Change: Jaguar. I doubt you will have missed the brand relaunch. It was always our intent to be bold and disruptive and get people talking about Jaguar again. Being noticed, not forgotten.
Speaker Change: And remember, New Jaguar is very different, repositioned for luxury, for exuberance, for sportiness, where it always was successful.
Speaker Change: You can see the launch numbers below, almost 1 billion opportunities to see, 15,000 press articles and already 26,000 customers with expressions of interest.
Speaker Change: We know that the customer base of the new cars needs to evolve, to be wealthier, to be younger, and you can see bottom right this is exactly what we've achieved.
Speaker Change: New Jaguar in the Dark Colour is much more focused on the 18-44 year old profile and 56% of those that search New Jag online are higher income households.
Speaker Change: So we've taken the first step, we've broken the inertia and cut through, now it's down to the cars. I actually drove it yesterday.
for our little test track.
Speaker Change: Not only does it look amazing, with a thousand PS it's incredible to try. I got out buzzing and remember I work in finance.
Thanks, y'all.
Speaker Change: Shailesh Chandra, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Anish
Back to the numbers.
Looking ahead.
Speaker Change: Please focus on the headline, we are holding full year guidance for EBIT margin and net cash positive.
Speaker Change: It does mean we need a stellar Q4, but seasonality is always strong for us in Q4, so with the following winds and no surprises, we can do it.
Speaker Change: That means cash generation of 1.143 billion versus the 892 million last year and it means Q4 EBIT of over 10% versus 9.2% last year. It's tough but it's possible and what a successful year that would make it.
Thank you.
Speaker Change: That's where I wanted to end. I'll be around obviously for any questions after we've concluded the rest of the presentation.
Thank you.
Speaker Change: Thanks Richard. Let me now hand it over to Girish and Ramanan to take you through the CD section.
Thank you all.
Speaker Change: Shailesh Chandra, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Anish
Anish Gurav: So on the on market share if you look at our battery performance trucks and passengers continue to perform better and are trending higher than FY 24 from market share perspective. However there has been a drop in the ACV market share versus 24 and actions are underway to improve competition.
Shailesh Chandra: Anish Gurvanek, Shailesh Chandra, Shailesh Chandra, Richard Molyneux, Anish Gurvanek, Anish Chandra, Shailesh Chandra, Anish Gurav, Shailesh Chandra, Anish Gurav, Anish Gurav,
Thank you. Thank you.
[inaudible]
Shailesh Chandra: On a YTD basis too which you see at the bottom end of the chart, the trend was similar. Overall, the ROC remained robust at 38.1%.
Go to the next page, please.
It's got to show to you a big walk.
Shailesh Chandra: So as we shared in the earlier page, we delivered a higher effect margin despite lower volume.
Shailesh Chandra: The variable cost saving provided a strong offset to the volume impact that we had, the dip that we had.
Shailesh Chandra: And PLI approval that Balaji had shared in the beginning was secured in the quarter and approved and further events were created for us. So, overall it helped deliver an event of 9.6% which is an improvement of 10 weeks over the same PLI quarter last year.
Speaker Change: And now we request Girish to kind of provide the given subject.
Who's next?
Right, so I think after a double-digit decline
in Q2 on a y-y basis.
I think the industry
Speaker Change: If I may say, kind of rebound in terms of volumes and...
The volume remained flat on a y-y basis.
Speaker Change: But amongst the segments, it is the buses and vans segment which continues to do very well.
Speaker Change: It grew 11% on a yy basis, small commercial vehicles grew 3%.
ILMC we remain flat
The heavy commercial vehicles declined by 9 percent. However,
Speaker Change: The decline was much higher in Q2, so on a few-on-few basis, there was a growth in heavy commercial vehicles.
Speaker Change: The utilization has started growing in all the segments on a quarter-on-quarter basis.
Speaker Change: Especially towards the end of November, there has been a good growth in utilisation. Trade rates have also improved, as you can see in the graphs.
which is in line with singular trend.
Speaker Change: The diesel consumption, which had dropped by almost 15% on a yy basis.
Speaker Change: Improved in Q3 to a 5% growth over on the YY basis, that's a very good sign.
Indicating Higher Utilization
Transporter profitability has improved marginally.
of course with improved utilization levels.
Our internal metric, which is customer sentiment index.
Speaker Change: have also improved, although marginally, but after a good monsoon has improved and we have seen a good improvement happening, especially in Kipas.
Commodity prices remain range warm in Q3.
Speaker Change: Shailesh Chandra, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Anish
Going ahead.
Speaker Change: Highlights for Tata Motors Commercial Vehicles, so I think our volumes
It may flat or decline by 1% yy.
which is after a 19% decline in second quarter.
Speaker Change: As I said, Heavy Commercial Vehicles, Intermediate, Light, Medium and Passenger Carriers.
Speaker Change: continue to perform better on a YTD basis and therefore growing market shares.
Speaker Change: The passenger carrier grew by 30 percent, ILMC by 3 percent and even medium commercial vehicles grew in double digits.
[inaudible]
Speaker Change: For us, the digital contribution to retail is now at a healthy about 20%, so 24% in Q3.
Speaker Change: which is 20 percent higher than the previous year. We continue to launch new products more than 50
During the quarter, I was also followed by...
Significant showcase happening during Bharat Mobility Global Expo.
Speaker Change: As Ramanan mentioned, cost reductions as well as the PLI approvals, PLI amount helps us improve the margins. On electric mobility.
The
delivered more than 200 buses in Q3.
and now have more than 3,500 buses operating.
In ACE, we have now delivered more than 7200 vehicles
Speaker Change: On a YOY basis in Q3, the ACEV volumes have grown by 26%.
Speaker Change: On a YTD-YY basis, the ACV volumes have grown by almost 40%.
Speaker Change: We continue to work with corporate customers apart from government as well as retail customers but we added 10 corporate customers in Q3. We have now total 70 of them and we are helping them on their decarbonization journey.
Speaker Change: Within the organization our sustainability targets are on track and I am very happy to note that.
Speaker Change: One of our clients at Lucknow actually received the Zero Waste to Landfill Certification which is a critical component of the circularity initiative.
In Smart City Mobility Solutions, we...
Speaker Change: surpassed a very important milestone which is more than 260 million kilometers were covered.
with more than 95% of time.
Speaker Change: The deployment under CSL tender is now towards the end, we should be completing it now.
and more than 2,400 buses are deployed.
Speaker Change: Based on the performance of these buses, BMTC asked for additional 148 buses, which we have already signed the contract.
And these buses are consistently delivering above the contractual performance.
Speaker Change: Although operating in sweet as well as very cold weather of
Sri Nithyananda.
Coming to digital business
Speaker Change: So Fleetage now has more than 760,000 active vehicles on platform, which also translates into more than 300,000 customers.
Speaker Change: and a large share of that are active and engaged users.
More than 81% users are active on a monthly basis.
and almost 61% on a weekly basis.
Speaker Change: P-TECH subscription continues to grow at a very healthy rate as we keep on adding more and more.
Thank you very much.
Machine Learning Based Real Efficiency Solutions of IELTS RTE
Speaker Change: continues to deliver more than 5% improvement in real life operating conditions.
and we are extending
presence of this across multiple segments.
Deep Khan, our digital...
Space for Selling Space, now has 36,000 registered buyers.
and they are selling more than 30,000 stock clipping units.
Speaker Change: and an artificial intelligence based image search, search is now live on Edukkaan.
Thank you.
Shailesh Chandra
Speaker Change: achieved more than 11,000 platform-assisted retails in Q3. So, this also continues to grow.
And also Anish Branko.
Speaker Change: Coming to Bharat Mobility Global Expo, so Alaji has already given a...
Speaker Change: And with this repositioning, we will, we are now endeavouring to deliver better.
Speaker Change: In every moment with an objective to help customers be more successful.
Speaker Change: In terms of products and offerings, we had six battery electric vehicles.
many of which are close to commercial launch.
Speaker Change: We also demonstrated the first hydrogen internal combustion engine truck, which will now take part in the hydrogen pilot as a part of government's hydrogen mission plan.
We also demonstrated the range of alternate fuel options.
So biofuel, flex fuel, CNG, LNG.
He also showcased two new generation architectures.
Speaker Change: Modular Architectures and also two very high-end special applications especially in heavy commercial vehicles. In terms of the solutions we also had
Showcase of details
Speaker Change: Fleet Care, E-VUKAN, Smart City Mobility and also V-WIRE which attracted a lot of attention during the entire expo.
Speaker Change: That's it. I think that's the last one. I think going ahead for the last quarter, a very important one for the commercial vehicle industry.
And as you know the
Q4 is generally seasonally strong quarter.
Speaker Change: I also spoke about some of the green shoots in terms of utilization, customer sentiment, diesel consumption, etc. So we are looking forward to this quarter.
Speaker Change: In terms of improved YUI performance as we have seen moving from Q2 to Q3. I think our focus will be
Speaker Change: with the front-end transformation and also leveraging some of the newly launched vehicles.
We will continue to growth in the downstream business.
in terms of services and penetration.
Speaker Change: In international market, we will continue to maintain, share and improve channel health.
Speaker Change: And of course we will continue our execution of net zero and circularity initiative.
Speaker Change: So that's all from Kamakshal Vekal. Balaji back to you. Thanks Girish. Let me now hand it over to the PV team, Dhiman and Shailesh. Dhiman, over to you. Thank you Balaji.
Thank you.
Thank you. Thank you. Thank you.
Speaker Change: This quarter saw the highest ever retains in the industry on the back of a strong festive period in the month of October and a traditionally strong December before the calendar year end.
Speaker Change: We were able to improve our market shares by 0.7% in this period on a quarter-on-quarter basis.
Speaker Change: Our SUV portfolio continues to grow strongly on the back of Nixon, CNG and Curve, but we have seen adverse salience on our hatches and saddles which has meant that our market share has been muted.
Speaker Change: Anish Gurav, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Anish Gurav, Shailesh
Diesel andENE penetration remains Stable
Shailesh Chandra: In terms of EV optics, our optics in the personal segments remain strong with a growth of 15% on a year-on-year basis.
Shailesh Chandra: Overall EV Optics growth is lower at 6% that is largely because of the decline that we have seen in the fleet segment once the FAME II incentives fell off in Q4 last fiscal.
Shailesh Chandra: Despite the very strong competition that we have seen in the last few quarters the new launches from competition
Shailesh Chandra: We've still been able to manage our market share at greater than 50% because of the wide portfolio that we've maintained at different price points ranging from 8 lakh to 22 lakhs.
in terms of financials that I've mentioned.
Shailesh Chandra: This quarter, we had very strong details, but at the same time, we balanced our optics to ensure that we exit the year with a lower inventory, which had been a problem in previous quarters.
Shailesh Chandra: If margins for PV and EV put together came in at 7.8%, this obviously reflects about 150 bits impact for the PLI approval that we took in Q3 at 5.25. Without the PLI, EBITDA margins would have been flat.
Thank you. Thank you.
Speaker Change: Shailesh Chandra, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Anish
Speaker Change: PPP, ENQ3, FY24 was at Rs. 408 crores. We have seen adverse realizations in this period, partly because of high discounting in the industry and the eyesight to clear out inventory. We've also passed on significant localization benefits and battery price reductions to the consumers for mainstreaming of EVs.
Speaker Change: Nearly all of it, if you see the amount of 300 crore that reflects the structural cost reductions that you've taken on the I side, as well as the localization and battery savings kind of offsetting a large part of it.
Speaker Change: On the I segment, our EBITDA margins declined by about 1% from 8.5% to 7.3%, largely it's an impact of adverse realizations.
Speaker Change: Shailesh Chandra, Unknown Executive, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard
Speaker Change: Unknown Executive, Dhiman Gupta, Richard Molyneux, Anish Gurav, Lonk выgoing to present to us on the topic of battery cost savings and the structural interventions we keep taking in our portfolio.
Thank you.
Speaker Change: As far as segments are concerned, SCVs grew by 16% year-on-year, and the savings increased from 50% to 54%, but this came at the cost of double-digit eGrowth and HH incidents.
Speaker Change: In order to be, as Raman also mentioned that industry saw a channel new and pre-production ahead of the New Year, however this has come at higher levels of discount in industry.
Speaker Change: As far as EV segment is concerned, we saw an increase in registrations by 23% year-on-year. This has come on the back of new products supporting the growth.
Speaker Change: and also we remain strong number one in this financial year also so far. As far as we also achieved in quarter 3 the highest ever registrations and with moderation in most states we were able to bring down the channel entry below 25 days.
Speaker Change: Despite all the competition leading up to the EV segment, we maintained our market leadership. The highest ever personal segment registration to be qualified, although 3 points challenge.
Next slide please.
Speaker Change: Shailesh Chandra, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Anish
Speaker Change: The people who came to see the expo, you know, increasing the awareness on safety and what goes behind making safe cars and also, you know, the sustainability, future facing sustainability.
Speaker Change: Also we showcased the Srirang Ice which became one of the biggest attractions of the show.
Speaker Change: In addition, we also showcased our multi-power drain capabilities, first time showcasing the punch flex fuel concept, which is capable of running on ethanol. We also have an interactive PV zone, which is not about only showing products, but the strong ecosystem that we have been developing, including charging and battery recycling.
Speaker Change: who had a significant opportunity to review our products and interact with our teams. This clearly shows that we continue to invest very strongly both on the ARI side and GV side.
Next slide, please.
Speaker Change: So going forward in Q4, a key focus is going to remain in terms of driving growth by capitalizing on the low channel inventories and LBO dealer network.
are positioning each very very strongly from a competitiveness perspective.
Speaker Change: We have also identified some key micro-markets, we will focus on driving demand and increasing our market penetration there and we are taking structural actions in terms of driving re-penetration including the TataRot EV charging network.
So back to you Balaji. Thanks Shailesh.
Speaker Change: Quickly wrapping up the rest of the numbers from a cash perspective over all CV and CV.
Balaji: Going strong. This quarter, on a YTD basis, we delivered about 2,500 crores of cash. And we should be now positioned to drive this further in the coming quarter.
Balaji: Apologies, Q3 we delivered 2,500 crores of cash and this is something that is likely to increase even further in the coming quarter because of the seasonal impact that will always be there and most importantly all the significant step-up in CapEx completely getting funded by the cash profits. Next slide please.
Balaji: Investments continue to pace. We are on track for delivering the numbers. About 6,000 crores have been spent so far, so we are in line with the 8,000 odd crores that we indicated we'll be spending this year. Next slide.
Nithyanandam.
Shailesh Chandra: Looking ahead, we do expect the underlying domestic demand to improve gradually on account of infrastructures, few of exciting product launches that Shailesh talked about and stable interest rates.
Balaji: and JLR Wholesales are likely to improve further in Q4 backed by retail growth.
Balaji: However, we do remain watchful on the overall demand situation, particularly in China. And the business has taken through the priorities in detail. Let me now stop here and hand it over for the questions that will be there.
Balaji: With this let me move on to the question queue that is already built up for quite a nice set of very probing questions out there. Let me first start with JLR. The most liked question is sitting there. Do use the like button to push it that way I'll also know that we are answering all your relevant questions out there.
Balaji: Question coming away Richard, for a JLR FY25 revenue and ROSI target, this is from Raghu Nuwama, ROSI targets have been cut.
Balaji: Would you expect challenges in the key regions? And how much would the inventory levels at dealers be at this point in time? And another point that is picked up is, obviously, depreciation has reduced significantly. You alluded to that in your discussions. Will it continue at these levels?
Balaji: Okay, let me try and take those progressively. So, revenue and rosy targets have been cut a little bit. This is the effect of what happened in China during the course of the year, impacting our volume in China and hence our revenue.
When you take revenue down...
Dhiman Gupta: Unknown Executive, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Unknown
Speaker Change: Can you talk of demand expectations for FY26? I think Balaji said it, I think in many regions of the world
Speaker Change: whether what's going on in China is cyclical and it will rebounce.
Speaker Change: Whether it will not rebound or whether it will go further down from here, I think the jury's out on that. It would be too easy to say it will just rebound.
Speaker Change: So, we are being cautious in China and links into your other point, we are very focused on making sure that dealer inventory levels in China are kept at reasonable levels because that is what drives
Speaker Change: Retailer margin. Retailer margin is key to make sure that the retailer network stays healthy and that is an important point for us.
So, maintaining inventory levels, dealers, I think,
Speaker Change: is also more important in China than it is in some other parts of the world.
Speaker Change: We have already taken the moves in terms of moving out our end production of ICE vehicles that we would expect.
Speaker Change: So we don't have any more moves planned at this time, so I expect DNA will stay pretty much at these levels until we start to launch the BED vehicles.
Speaker Change: We raise her over BEV first in November next year, that will start then impacting the G&A charge primarily as of Q4 next financial year. So for the next three quarters it will stay rock and roll.
Shailesh Chandra: Thank you. Thanks Richard. Shailesh, this is coming your way in terms of India PVs, is this from Kapil Singh?
Kapil Singh: We are hoping for some market share gains with the curve launch, any thoughts and what kind of volume growth are you expecting next year, both for the industry and for motors?
and Shailesh Chandra.
Kapil Singh: Whereas the new variants, especially the automatic variants have got delayed, but should be launched in this quarter itself.
Kapil Singh: at least one of them. So that should give the full potential of this product to unleash itself.
Speaker Change: Shailesh Chandra, Anish Guravan, Shailesh Chandra, Unknown Executive, Dhiman Gupta, Shailesh Chandra, Unknown Executive, Dhiman Gupta, Shailesh Chandra, Unknown Executive,
Speaker Change: and the unique styling of this product and we have gone through this journey in Nexon as well as Punch being completely new white space products.
Speaker Change: And we have seen Nexon going from 4000 to 16000 since the time of launch, as well as punch, you know growing from 7000 odd numbers in 2021 to 16-17000 or so. So we are very confident that as more and more curves are seen on the road.
Speaker Change: Shailesh Chandra, Unknown Executive, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard
Speaker Change: Anish Gurav, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Anish Gurav, Dhiman
Speaker Change: So, one month it goes sharply up and then it goes down and that's the trend that we have been seeing. It has to do larger with, you know, it has to do more with the larger macroeconomy.
Speaker Change: And hopefully, you know, if there's enough stimulus in the budget and the macroeconomic indicators start turning good.
Speaker Change: Then the industry should come back to six to seven percent growth rate in FY26. But we've got to really watch out the next one quarter, how it pans out, and really what government announces, more from a consumption-led growth perspective. So we've got to see that.
Speaker Change: Thank you. Dhiman, maybe I'll just pass this question on to you. PDEV, just from Denae Morgan Stanley.
Speaker Change: Shailesh Chandra, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Anish Gurav,
Speaker Change: PLI incentive as a percentage of EV sales looks so how to think about this number going ahead.
Speaker Change: Yes, so, as I mentioned in my slides, even without DLI, this is the first time our beta has turned positive and it's about 1.7% without taking any benefit of DLI. Structurally, our margins have been improving because of better mix-up curve.
Speaker Change: and some deep localization benefits that have been doing improvements of factory packs and some of those interventions we will keep doing.
Speaker Change: in the near term, but a lot of those benefits will also get passed on to the customers for mainstreaming of EVs.
Speaker Change: We would look at it that without PLI, we would be very even at an EBITDA level and PLI helps come in, fund some of the KPIX investments we are doing as well as some of the market development activities that we do.
Speaker Change: Anish Gurav, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Anish Gurav, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Anish Gurav, Dhiman Gupta, Girish
Speaker Change: About a billion of it came from TPG and I always maintain that close to 800 million would come from the PLI benefits, so PLI was an important part of the investment plan that we are putting through behind EVs.
and Shailesh Chandra.
Let me now move to JL, I think.
Speaker Change: This is from Nishit Jalan. I'm sure this is a question that's been expected by a lot of people saying that in light of the subdued demand and pricing environment,
Speaker Change: How do you plan to achieve your EBIT margin target of 10% in FY26?
Anish Gurav: Anish, what will be the key drivers? Anish, before I pass it to Richard, just a clarification. Right now, we have confirmed the guidance for the current year. We always update our guidance only by the end of the year as part of the investor day. So, until such time, the current guidance stays.
Speaker Change: Having said that, how we are thinking about the margin improvement from here on, I think that's obviously an extremely relevant question, which Richard, I'll invite you to comment on.
Yeah, sure. So,
Anish Gurav: Anish Gurav, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Anish Gurav, Shailesh
We need
Anish Gurav: Over 10% in order to be able to hit our full year EBIT guidance, so Q4 we should be at that type of level. We will have the depreciation and amortization benefits going through next year and in the back end of next year we'll have benefit of range over various sales.
Anish Gurav: We know that we need to take some action to make sure that we cap
Anish Gurav: the market effect of DME and that we recover our warranty spend and drive still further material cost. So we know we have an awful lot to do.
Anish Gurav: But if you think where we will be in Q4, I think the walk through to a strong next year is much easier to understand.
Speaker Change: Thank you Richard. The next again I'm sure equally popular question coming up Shailesh at your end. For India, this is from Raghunamoma again, for India PV there are a lot of new EVs being launched.
Speaker Change: This should expand the size of the EV market. How do you see the growth prospects for Tata Motors amidst raising competition?
Speaker Change: Yeah Balaji, so you know part of the answer is there that you know as the marketing as more competition products are going to come and more choices for the consumers there's going to be expansion of the industry as well as three things will happen one that there will be greater awareness and excitement among the consumers.
Speaker Change: It will give confidence to the customers that EV is the future because last one year there had been a lot of negativity around this. So one that market is definitely going to benefit from an industry growth perspective.
Speaker Change: Because of the lack of expansion of the market, it is the widest portfolio, as Raman was mentioning, from 8 lakh price point to 22 lakh, and none of them overlapping with each other.
Speaker Change: And that's a unique advantage and you are able to take the best advantage of that as the market expands. So we believe that as the market expands, we will be the biggest beneficiary. Second, you know, I believe that all the intensity of competition that you are going to see,
Speaker Change: and you would have seen that all are going to be above 18 lakh price point.
Speaker Change: So there's a lot of crowding going to happen in greater than 18 lakh tribes point
discuss
Speaker Change: This is not where competition intensity is increasing and therefore we will fully leverage this opportunity to get into you know even tier 2, tier 3 cities including rural because there is a high propensity of you know customers going for EVs here and where lot of the new competition attention is going to be in the tier 1 cities by the way.
Speaker Change: The other thing which I feel is to our advantage is
Speaker Change: multiple customers, you know, our EVs are proven vehicles in the Indian market, you know, in very, you know, tough, you know, environmental conditions in which they operate.
Speaker Change: and you ask, you know 2 lakh EVs have covered more than 5 billion kilometers, you will not believe that 10,000 EV customers have already done more than 1 lakh kilometers.
Speaker Change: and tens of thousands of customers have done more than 50,000 kilometers. These are proven ease and that will definitely work to our advantage.
Speaker Change: and finally I would say that ecosystem which we have created on the charging infrastructure side, the entire 18,000 kWh charges that you see is the work of start-up power collaboration as well as collaboration with all the charge point operators.
Speaker Change: And we are going to really continue to work on this to ensure that, you know, there is a unique benefit to our customers on those charging infrastructure. At the same time, it will help in addressing the biggest barrier to media adoption.
So, next bit I would say that...
Thank you.
Speaker Change: Having got the first mover advantage, there are a lot of positives.
Speaker Change: on our side. There can be a bit of hiccup because initially for each and every launch there will be a, you know, temporary excitement around those products also.
Speaker Change: These products will fill the channel for display vehicles and test-drive vehicles There will be initial jump in the volumes for these vehicles There can be a bit of hiccup in the market share but, eventually on the other side, when things stabilise We should continue to do well, as far as the market share is concerned
Shailesh Chandra
Speaker Change: Thank you Shailesh. Just to give a little bit, just to add to what Shailesh said, I think the question on market share in EVs is probably less relevant at this stage.
Speaker Change: Penetration of EVs in the overall play of the game is against how do you upgrade customers from ICE into EVs, which I think with the advent of this level of intensity of action from every player is only going to improve and therefore that should augur well for us in the long run. Just to add what Shailesh has said here.
Speaker Change: Anish Gurav, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Anish Gurav, Shailesh Chandra, Girish Wagh, Shailesh Chandra, Richard Molyneux, Anish Gurav, Shailesh Chandra, Anish
Speaker Change: Shailesh Chandra, Unknown Executive, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard
Speaker Change: VME I think that the industry is not showing any signs of becoming less competitive at the moment. So I think there probably is for a couple of quarters a little bit more room to the north on that. On the flip side I would expect warranty
Speaker Change: to have peaked at the level that it is this quarter and therefore to start coming down.
and
So downside risk.
Speaker Change: on VME but it's not of great significance and we're not talking going back to the type of levels that were around pre-COVID but it could rise a little bit from the 4.2% that we saw this quarter. Warranty I think will go the other way.
Shailesh Chandra
Speaker Change: Thanks Richard, just staying with you for a minute, the next question from Nishit Jalan, you already answered the pricing VME question, so ASPs, can you comment on that? ASPs are declining sequentially and also year on year, despite stronger product mix. Is it purely due to China mix or are there other factors in here?
Speaker Change: You know, I don't think the moves here are that significant, so if you look at stat rep by volume, Q2 was £74,000, Q3 £72,000.
Speaker Change: If you actually look at it year-to-date, we're marginally up on year-to-date last year. So the moves in ASP on that material, you've mentioned obviously the probably the most significant aspect of that, which is China price mix.
Speaker Change: There's also a little bit of FX in there And a little bit of the increase in VME Those are the type of things that do it but the moves They're not material and if you look at it year to date they are actually marginally upper when we go after
Shailesh Chandra
Speaker Change: Sorry to put you on a spot. Continuing with you, just comment on emission cost as well. That's the next question from Ginesh Gandhi. You covered the rest of his questions on the cost drivers. He's got a few more, but let's talk emission and I'll cover the others.
with the question on emissions.
Speaker Change: How do you think about emission costs and warranty costs in FY26 and beyond? Just comment on emission, you've covered warranty already. So emissions costs, the most relevant markets for us for emissions costs are the US and the UK.
Speaker Change: You'll note that the UK Government has already issued a consultation.
Speaker Change: on the future of the Z mandate and we're very closely working with them on that.
Speaker Change: And the US, well, yeah, that may well, I guess, change as the new administration.
Speaker Change: Shailesh Chandra, Unknown Executive, Dhiman Gupta, Richard Molyneux, Shailesh Chandra, Richard Molyneux, Unknown Executive, Dhiman Gupta, Shailesh Chandra, Richard Molyneux,
However, I think at some stage this
Speaker Change: Unknown Executive, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Unknown
Speaker Change: Red happy anger Sometime that's got to come to fruition and the OEMs are gonna get go... In the middle of that which is currently where we said
Speaker Change: So we're in discussions with the UK government. We're keeping an eye on the US government. Those are the two markets for emissions costs that are important to us. If nothing happens, then our costs will rise next year.
Speaker Change: Thank you. Again, some exciting stuff on the timeline for the Range Rover electric deliveries and also about the cars that are coming, the EVs that are coming post the RR electric. Is there anything you can share with us?
Speaker Change: Yes, I think Adrian covered this in the last call, so Range Rover Electric very end of this calendar year.
Speaker Change: That will be followed by the first dev of our EMA architecture.
in mid-2026.
Speaker Change: and the Jaguar that you saw the photo of will be the very late summer I think is what we said in terms of 2026
So they're all coming this year or next.
Speaker Change: Thank you. Moving Girish on to you, this is from Pramod in CRED, HCV segment is noticing increased product assault by competition, especially lower tonnage. How do you plan to address it and limit market share impact?
Speaker Change: Shailesh Chandra, Unknown Executive, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard
Other than that, we look at two...
End of the segment.
Speaker Change: The lower end we call it a small commercial vehicle and the upper end is more of pickups.
[inaudible]
Now, within the small commercial vehicles.
post year six
This segment has actually contracted.
Having lost
Some ground controllers on the lower end.
Speaker Change: due to initial pricing and then losing to the pickups on the above upper end
I think our approach to this
Speaker Change: Shankaracharya Dev, Shailesh Chandra, Anish Gupta, Girish Wagh, Shailesh Chandra, Richard
Speaker Change: who have our own product offensive and you would have seen in the Bharat Mobility Global Expo in fact we introduced a completely new
category of small commercial vehicle that is e-screw
Speaker Change: which will actually get into the earlier proposition of these vehicles which was there in the BS-IV era.
Speaker Change: We will also come up with the products with multi-fuel options.
Thank you for your time. Thank you. Thank you.
Speaker Change: CNG, petrol as well as electric. I think so that multi-fuel approach will also help to address more number of customers.
Now talking about pickups.
I think Intra is our new range of pickups where
The presence has, the range has been widened significantly.
Speaker Change: And we have seen that there is significant customer acceptance for this product, I think now.
Speaker Change: We are into the process of more accelerating the communication piece to increase the consideration.
and also looking at
Quite a few actions on the network side.
Speaker Change: I think that's what is our strategy on the small commercial retail and pickups.
Speaker Change: Thank you Girish. Dhiman, let me hand this over to you from Kapil Singh on PLI. On the eligible EV products revenue, what is the percentage of revenue you are getting as PLI?
Dhiman Gupta: So, right now we have TIAGO, NTGOR, AT registered and TCS also received basis which we have done the approvals.
Speaker Change: Pancheshaste's High Power De disruptors and Of course products are very compliant at 50% you
Speaker Change: So, we are refraining from giving an outlook, but for all the vehicles which are AET registered, we will be getting 13% of revenues as ALI, net of any vendor claims who are supplying to us AET registered products.
Speaker Change: For this year at least, we haven't seen any vendor claims, so we are booking the entire 13%. Yeah, and the 13% goes up to 18% progressively as the revenues start increasing.
Okay, so...
Speaker Change: Anish Gurav, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Dhiman Gupta, Girish
Speaker Change: And how should we look at the new JAG at VisibleMarket?
Speaker Change: Okay, so in terms of premium goods in Europe, I can't really comment. What I will say, it's probably a little bit surprising. There have been some green shoots in...
Speaker Change: premium automotive demand in Europe in recent weeks. So, I mean, it's not been a particularly easy market, excuse me, over the last couple of years, but there are some green shoots that things might be turning around.
Excuse me one second.
Up to Jaguar.
We really are not focused on market share.
Speaker Change: A, I think it would be quite difficult to define what a market is.
And B, market share is not something that drives us.
We will
Make sure that we have share of wallet.
Speaker Change: We will target specific groups in specific countries and go after them. So I would be surprised if you will ever see a Jaguar market share number or comment from our side. It is simply not something we consider relevant.
Thank you, Richard.
Thanks to all of you and our followers for that.
Speaker Change: Shailesh Chandra, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Anish
Let me take you to...
Shailesh
Speaker Change: Anish Gurav, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Anish Gurav, Dhiman
Speaker Change: Given that the pricing is not as high for EVs as was right, the differential is not great. Will government subsidies for setting up the charging infrastructure help expedite the network expansion? What's your sense?
Speaker Change: I think Zero Charging Network expansion in India is you know there are three parties who are really working on this one is the OEMs themselves the other are the oil marketing companies who have subsidy you know from the government already for the last
Speaker Change: Two years I would say to build a charging infrastructure in 2000 and the third are the you know smaller startups like charge point operators
Speaker Change: I think all marketing companies are going to play a big role.
Speaker Change: And I would say, now the charge point operators and the new entrepreneurs
Speaker Change: would want to get into this space given a significant launch activity that we are seeing across the Union. So, one, because of natural demand growing and mass expanding, there will be greater interest.
Speaker Change: You have the Prime Minister E-Drive, you know, 2,000 crore of subsidy.
Speaker Change: cars have covered. So we are giving inputs to the government to at least first address the highways where we see there will be high utilization because already we know the highways where the cars are moving, EVs are moving more.
Speaker Change: Thank you. Girish, this is on the CV demand. For India, India CV, considering replacement demand, some improvement in trust spending and favorable base, how do you see the domestic MNH CV industry outlook for the coming years?
Shailesh Chandra
Okay. Cool.
Speaker Change: Before I get into coming here, let me first talk about how this year has behaved. I think we started the first quarter on a very strong note.
It's a wine-like road!
But quarter 2 did show a significant decline.
The decline reduced in quarter 3 but still
Speaker Change: On a YTD basis in 9 months, the heavy commercial vehicle industry has actually declined by 13%.
Speaker Change: But if I look at the data at the end of Q3,
Utilization here started going on.
The Consumer Sentiment Index has also marginally moved up.
We see that the year-on-year pipeline
is also better.
And therefore, I would say that.
Speaker Change: To begin with, the Q4 volumes are going to be key.
with these kind of indications
Speaker Change: As flat on the back of the declines in Q2 and Q3.
We will actually set a good base for next year.
Speaker Change: I think looking into the next year, yes, we do expect.
Government Spending on Infra
An Actual Progress of Infra Projects to Pick Up
Speaker Change: which should help the heavy commercial vehicle industry. In addition to this,
Speaker Change: We also keep a track of the nine end-use sectors like steel, cement, mining, power, e-commerce, tread, etc. Thank you. Thank you. Thank you.
Speaker Change: Indications that that these sectors should do well. So all these, as of now
point towards a good Q4.
Speaker Change: And as I said, if the Q4 ends being flat on a yy basis, I think it should set us a good base.
Speaker Change: Richard, coming your way, you answered the rest of the question, but there's one thing on North America which I want to pick up with you. What's driven the 48% year-on-year growth in North America retail for Land Rover and Q3? Is there some pre-tariff imposition surge?
No, certainly not deliberately.
Speaker Change: If you look at year to date, the US market is 25% up for us, or our sales in the US are 25% up for us. There was some switch between Q2 and Q3, but that was more due to homologation timing of certain derivatives than any deliberate attempt on tariffs. So the reality with
Over a three-quarter period, a 25% rise in wholesales.
Speaker Change: is that we're performing pretty well in the U.S. and as I say our brands particularly Range Rover and Defender do resonate strongly with U.S. consumers so it's a good and strong market for us.
Speaker Change: Thank you for this question. I think, as I said in the beginning, Bustos and Raman have in fact shown...
The Maximum Growth on a Y-Y Basis
Speaker Change: We have also grown our market share, I think, quite in 9 months.
Our registration volume share is around 38%.
I think our strategy here also has been
Speaker Change: to come up with multiple options, so we do have buses.
Vin Diesel, CNG, as well as electric options.
addressing different customer segments.
Speaker Change: Now, if I talk of the MCV buses, essentially there are two
Speaker Change: End use segment here, the first is state transport undertaking which is more of a tender business.
We will continue to participate in this business.
and Vim Tenders.
on Profitability Basis.
In retail,
Speaker Change: NCP buses which is more of intercity, we see a significant growth happening this year and in fact
We tracked the utilization of the products.
Utilization of these buses and CV buses
Speaker Change: and in fact gone up by almost 30% on a yy basis and we see a good growth
We actually have a very good portfolio.
Speaker Change: across MCV, ICV, LCV and that's what we are leveraging now to grow our share.
in MCV Retail Customer, in ICV
Speaker Change: And here our focus has been to deliver fully built buses.
Speaker Change: by leveraging two of our bodybuilding subsidiaries and therefore give ready-to-use
options to the customer.
Speaker Change: Light commercial vehicles and vans are more for school bus applications.
Speaker Change: We are looking forward to a very attractive Q4. Even here we have a very strong product portfolio, multi fuel options.
will not be present and therefore
Speaker Change: are growing in this segment also. So I think net-net we have improved value proposition across the segment.
We have increased capacity of bodybuilding.
just six months back and therefore are very well placed.
Speaker Change: who addressed this growing segment in Q4 and we also expect this to continue in Q1 of next year.
Speaker Change: Thank you Girish, just staying with you, you have answered the rest of the question but there is one we haven't talked about, any signs of stress in financing banks, NBFC etc, delinquency rates, anything that you are worried about?
Let me speak segment by segment.
Shailesh Chandra
In small commercial vehicle and pickup
I think there has been some stress, especially in
Speaker Change: But there has been an improvement during the year as we move towards Q3. I think the financials have also been...
Speaker Change: are selective now in terms of financing and one can see an improvement therefore in their portfolio. We have also been working very closely with the financiers.
Therefore, prioritize the reads which can also pass.
Their Criteria
Speaker Change: If you look at buses, which were certainly under stress, but this year, with the kind of utilization the buses are seeing, there is a significant improvement and not a challenge here. If you look at MNCV,
Yes, I think there was a challenge, especially
Towards the end of second quarter, beginning of third quarter.
Speaker Change: In our conversation with the financials, there we could see challenge happening there, but I think post that with the improvement in utilization, I think this stress in MNSTV is also going behind us. I think that's how we are placed overall in all segments.
Speaker Change: Anish Gurav, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Dhiman Gupta, Girish
The eligibility certificate is only in December.
Speaker Change: Shailesh Chandra, Dhiman Gupta, Girish Wagh, Shailesh Chandra, Richard Molyneux, Unknown
Speaker Change: Rakesh Kumar, BNP. If electrification journey slows, do you think you will need to continue to invest in ICE, powertrain and the platform longer, resulting in higher overall capex than what you had earlier planned?
I think that is a very fair point.
Out
Speaker Change: It's the way I probably explain is if you imagine the world where there's only ice powertrains You imagine the world where there's only bed powertrains sometime Post 2030. Let's say those worlds are nice and simple
Speaker Change: You have one powertrain, you optimise it, you go forward, exactly as the industry used to be 10, 15, 20 years ago.
potentially in Reeve.
and in depth.
And the longer that period expands,
Speaker Change: The more difficult it is to make investment decisions to exit any one of those different markets.
Speaker Change: You're entirely right, it does increase the pressure on our short to medium term investment.
Speaker Change: So you do run your flexible architectures like EMA a little bit longer, so you push back the points in time where you need to invest in completely new BEV-only architectures.
Speaker Change: In the medium term, you're right, the proliferation of consumer demand and the lack of a binary switch from ice to bed globally does make it very difficult for us to exit any of those sections and we have to invest in those technologies in parallel.
Thank you.
Speaker Change: Thanks Udit. So we come to the end of the session in a very philosophical note which leaves a question mark there, don't know how to answer that. That apart, on the investor day, we have tentatively signaled these two days for the investor days. The Tata Motors one is going to be on June 9th.
Speaker Change: That tentative will mostly confirm in the coming weeks, and the JLR one is on June 16th.
Speaker Change: So look forward to seeing you there as well. So with this, we conclude the session today. Thank you all for your probing questions and look forward to continuing to be in touch. Thank you and thanks teams, JLR here, all you guys, much appreciated. Thank you.