Q1 2026 Tata Motors Ltd Earnings Call
Speaker #1: Good day. Hello. Welcome to Tata Motors Q1 FY26 earnings call. Today, we have with us Mr. P. Balaji, Group CFO of Tata Motors, Mr. Girish Wagh, Executive Director of Tata Motors, Mr. Shailesh Chandra, M.D., Tata Motors Passenger Vehicles Limited, and Tata Passenger Electric Mobilities Limited.
Speaker #1: Mr. GV Ramanan, CFO, Commercial Vehicles business. Mr. Dhiman Gupta, CFO, Passenger Vehicles business. Mr. Richard Molyneux, CFO, Jaguar Land Rover. And we also have our colleagues from Investor Relations team.
Speaker #1: Today, we plan to walk you through the results presentation followed by Q&A. As a reminder, all participants will be in listen-only mode, and we will be taking questions via the Teams platform.
Speaker #1: The same is already open for you to submit a question. Your requested to mention your name and the name of the organization while submitting the question.
Speaker #1: I now hand over to Mr. P. Balaji to take over. Over to you, sir.
Speaker #2: Thank you. Good evening, everybody. So, starting with a safe harbor statement, a slight shift here to the same of the Tata Motors finance business.
Speaker #2: We have now removed that segment called vehicle financing from our business, and included in corporate others. That's the only shift that is there. Some marginal shifts in the way of free cash flow is defined where you included the mutual fund investments as well there.
Speaker #2: So, that's the only shift there. Nothing material there. Next slide, ase.
Speaker #3: Quarterly activity intensity continued. Domestically, we had the air-conditioned cabins being launched, and our JLR side we had the Range Rover Range Rover Sport Black versions getting through.
Speaker #3: On the EV side, and I'm sure Shailesh is going to talk about it, the introduction of the lifetime warranty on the high-voltage batteries has been a blockbuster.
Speaker #3: That's helped out very well in the sales. He will talk about that. And JLR's rating has been upgraded to be a 1% rate there.
Speaker #3: By Moody's. Next slide.
Speaker #2: A few updates on the corporate actions. Part of the press is the demerger. We had the NCLT final hearing today. And it has been concluded.
Speaker #2: And the judgment is reserved. That should help us complete this quarter, and the effective date for the demerger will be October 1st, on plan.
Speaker #2: Then, of course, last week, we talked about the Iveco acquisition at length. So, I don't intend to go through it. It is there just to ensure that the details are well covered.
Speaker #2: It's the same slide you would have seen last time. Next slide, ase. Revenues, there's been a I'm Richard is going to talk about it.
Speaker #2: It was a very intense quarter from the point of view of the number of moving parts that we had to deal with in the financial side. The revenues were down 9.1%.
Speaker #2: At ?3 lakh crores, total sales were down 9.1% at 300,000 units. Revenues were down 2.5% at ?1 lakh and 4,000 units. Profit before tax and exceptional items came in at ?5,600 crores.
Speaker #2: Of care point here, if you look at the net profit line, where there's a substantial profit from discontinued operations last year of almost 4,900 crores.
Speaker #2: That is basically the Tata Motors finance business when it was sold to Tata Capital. It is a discontinued business that had to be marked to market.
Speaker #2: And that's what you see as a gain or profit from discontinued operations, not the underlying basis. So, this is before exceptional items; this is what you see as the number shift here.
Speaker #2: EBITDA 9.2% is down 480 bills. And we're going to talk about that both on the PV side and the JLR side. EBITDA 370 went down by 370 bills.
Speaker #2: And free cash flow, nothing to worry there, is a seasonal number that we are playing with on top of it, course, tariffs did impact.
Speaker #2: Next slide, ase. Where did the growth declines come from? A lot of it coming out of volume and mix. Offset by translation. Now, fundamentally pound sterling to the rupee.
Speaker #2: And profitability-wise, JLR declines, which Richard is going talk about, coming from the tariff hit as well as some one-offs that we had. CD continued to performance of improving profits despite revenue declines.
Speaker #2: So, now we're ning at almost 12% plus EBITDA. And that is what you see there. Net debt domestic motors 3.6 minus 5.2, still at net cash.
Speaker #2: JLR is seasonal in terms of its net debt going up because the first quarter. And the real reassuring point is the net out of finance, which is sharply declined, is also giving boost to the net profit line.
Speaker #2: Next slide, please. Let me hand it over to Richard to take you through an engrossing quarter. Richard, over to you.
Speaker #3: Engrossing is one word for it. So, it's pretty cool to when we've made actually a of progress both in terms of evolving our brand but also working with Sir Keir Starmer and his team in the UK company because 've got more favorable trade deal with the US than virtually every other country.
Speaker #3: However, it would be wrong to say Q1 was full of only good news. The external environment prevented us with multiple challenges of a scale, a speed, and sometimes an unpredictability that can't immediately just be absorbed.
Speaker #3: And which have impacted our Q1 results. So, these results are on this chart. Wholesales, as previously announced, were 87,000, generating a revenue of £6.6 billion.
Speaker #3: It's worth noting that revenue per car was a record for us. It equaled our record of 76 thousand pounds per car, despite the weakness of the dollar in this quarter.
Speaker #3: So, this is driven by our brand strength and the fact that more than 77% of our sales in the quarter are Range over, Range Rover Sports, and Defender.
Speaker #3: So, we achieved joint record revenue per car. EVT was 351 million, driven by an EBITDA of 4%. These along with the negative free cash flow were all impacted by US tariffs, which we have accounted for at the full 27.5% or the full quarter.
Speaker #3: Also, dollar weakness and industry dynamics in China have an effect and I'll explain more on future charts. The next chart, please. Okay. As per usual, I'm not going to go through this chart in detail.
Speaker #3: All the points are covered in the presentation, but they're summarized here for your future reference. Next. After a really strong Q4, volumes of 87,000 in Q1 were in line with our internal plans, as we wound down Jaguar models, and temporarily paused shipments to US following the tariff introductions.
Speaker #3: Demand for Range Rover and Range Rover Sport remained strong, but Evoke was down a third year over year as we upgraded systems in our hellwood plant and focused on higher margin vehicles.
Speaker #3: This is what's caused the fall in overall Range Rover numbers below its last year. Defender remains really strong, with wholesales up 15% year over year and retails also improved.
Speaker #3: Discovery was down, as Cisco Sports was also paused for the hellwood systems upgrade. And Jag volumes are now almost exclusively for FS. Next slide.
Speaker #3: So, regionally, the UK is impacted year over year by lower Jaguar volumes, but also by the fact that FY25 Q1, the number on the far left, was an exceptional year.
Speaker #3: FY26 Q1 is actually higher than both FY24 Q1 and FY23 Q1. So, the fact that we had a really super strong Q1 last year shouldn't take away from the fact that our UK business does remain fairly strong.
Speaker #3: North America obviously had some disruption, and Q1 also saw an offset from the very strong wholesale push that we did before the tariff increase.
Speaker #3: Europe is Jag impacted largely. I had a solid quarter. And on the right-hand side for the first time, we're actually going to split out NEMA and overseas.
Speaker #3: To give both these core markets appropriate focus both regions were up year over year. And finally, China. An incredibly difficult market continues, even before changes in the luxury tax laws that came in in July.
Speaker #3: But we performed well on wholesales. The retails, including the locally produced cars, fell. Do remember, these locally produced units are towards the end of their life, as our plant in Changshu moves to produce new freelancer product next year.
Speaker #3: Next chart. So, this is the key charts and explaining our Q1 performance. Walking from a PBT in Q1 last year of 693 million, to the 351 million we've just reported.
Speaker #3: Volume was at the 10,000 units. Because you're over a quarter of a quarter. But partly offset by the mix improvement in the Range Rover and Defender that I mentioned earlier.
Speaker #3: You can see the incremental duty cost in the quarter at £254 million on a P&L basis, equivalent to nearly 4% of EBIT. And just to state again, we are assuming in these actuals that the 27.5% duty on all cars out of the UK and Europe was in force for the entire quarter.
Speaker #3: We did have a partial offset to the tariff costs in the congress in the US reset federal cafe penalties to zero. Allowing us to release our balance sheet reserves.
Speaker #3: But the net hit from US developments was a major headwind to us. We do welcome the deals done by the UK and EU governments, which will reduce the scale of tariff paying going forward.
Speaker #3: But they do not remove it. In terms of net pricing, sales allowances are trending up a little but still remain low by industry standards at 4.1%.
Speaker #3: On a retail incurred basis. Our contribution costs continue to progress well. With reductions in material costs. But we have had to reserve the two significant historical warranty recalls driving that P&L chart to 5.4% in the quarter.
Speaker #3: The next column, DNA. Year over year remains favorable as we've stopped our production in CBN grass. And you can see the impact of dollar weakening in the penultimate column.
Speaker #3: The £205 million hit was partly offset by our hedging processes. It was a quarter significantly impacted by U.S. tariffs, partly associated with dollar weakening and historical warranty adjustments.
Speaker #3: Next chart. Walking this then through the cash, this is the first quarter for a while that we have had cash profit after tax actually lower the investment.
Speaker #3: So, I do note it's important to note here that excluding the incremental tariff payments, our cash profits would have more than our investment. The big change in the course is working capital.
Speaker #3: Where we've returned to a more normal seasonality. If you remember, Q4 working capital was over 1 billion pounds favorable. That means Q4, we sold 110,000 units.
Speaker #3: But we only paid the component set for about 99,000 or 96,000. In this quarter, it's the other way around. We sold 87,000 units, but paid the component sets on about 99,000.
Speaker #3: So, payables fell, inventory rose. It's normal seasonality for us. The bottom line is a 758 million pound cash loss of which circa 200 million pounds was from US tariff cash hit.
Speaker #3: And again, just for explanation, in the US, you pay your tariffs in cash. Essentially, one month after. So, in the quarter, we had 2 big tariff payments in May and June.
Speaker #3: Next chart. So, investment. Investment levels remain consistent. The Q1 was probably at the lower end of our recent range of 850 to a billion pounds per quarter, with both engineering and capital spend lower than in Q1 last year.
Speaker #3: Capitalization ratio was just on 70%. And that is probably near the peak for us, given our stage in the cycle plan. Next page. Right.
Speaker #3: Into the business update. So, next page. Look, it's really important in times of challenge that we put our energy into building our strengths, rather than just focusing on mitigating problems.
Speaker #3: So, we focused in the quarter on building our brand in this page with partnerships. You can see Range Rover, Wimbledon, you can see Defender as the partner of the Oasis tour.
Speaker #3: I love that picture. You can see a glimpse into the evolving Discovery brand at the Goodwill event down in Goodwood. And Jaguar builds its presence in its major future markets.
Speaker #3: So, we are focusing on our strengths and growing those as well as trying to mitigate the weaknesses that we see. Next chart. Some of ose problems, and we've had a few of them, standing aside UK specific issues such as higher employment taxes, the biggest is obviously tariffs.
Speaker #3: We welcome the deals. They've been done, and they will provide certainty for us to plan around. But they do take what was initially a 1,000% increase in the cost of our tariffs down.
Speaker #3: They take them down significantly. But the increases are still 300% for cars from the UK. And 500% for cars from Europe. Whenever the 15% reduction actually takes effect, has not done as of yet.
Speaker #3: In terms of other geopolitics, we had good news, really good news of a UK-India free trade agreement. But also further bad news in that China have reduced their luxury tax threshold from 1.3 million RMB to 900,000 RMB.
Speaker #3: Capturing almost all of our Range Rover sales now with an additional 10% tax. And that in a market where retailer finance is still very restricted.
Speaker #3: Finally, bear demand is certainly not following projections, certainly outside of China. So, we will rely on the flex nature of our MO architecture for longer.
Speaker #3: A lot of issues. But we're absolutely not just passively sitting and watching them. We are impacting more than ever before with government. And we have already started executing a significant transformation program.
Speaker #3: To get ourselves even fitter, focused around our policy mission. Next chart. So, are the missions. You've seen them before, each with dedicated teams and a board lead.
Speaker #3: They're fully up and running. And they're delivering results, impacting progressively through this year and next, to bring 1.4 billion pounds of value. And that's excluding the tariff mission.
Speaker #3: This is about circa 5% EBIT. It's offset some of those risks that we mentioned earlier on. Next page. So, let's summarize. We're on track to deliver our guidance.
Speaker #3: 4% in what is historically our worst quarter. And with tariff impacts reducing going forward, means we are sticking with our 5% to 7% guidance for the year.
Speaker #3: And then we will build from there. So, with that, thank you for your attention. I'll hand back to Balaji.
Speaker #2: Thanks, Richard. Let's now hand it over to Girish and Ramlan to take you through the CV business. Ramlan, over to ou.
Speaker #3: Thank you, Balaji. Okay, go to the next page, please. Our overall R&D market share improved by 50% over the last quarter. And it's at 36.1%.
Speaker #3: We saw a market share gain by 40% both in medium goods and the passenger segment. While maintaining a very resilient performance in heavy and light good vehicles.
Speaker #3: That's despite a drop in the TID in these segments. The recent launch of Ace Pro, we are expecting to gradually increase our market presence in this segment.
Speaker #3: And go to the next page. On the financial, it was indeed a tough quarter from a volume standpoint. And that is reflected in the revenue being 270 billion lower on a YOY basis.
Speaker #3: However, margins continue to be healthy. As both EBITDA and EBIT have grown on a YOY basis. This is majorly coming from lower material costs and better realization.
Speaker #3: For the quarter, EBITDA was at around 12.2%. And EBIT was at 9.7%. We continue to maintain a superior ROC performance, which is at 39.6%.
Speaker #3: Overall, a good financial performance in the quarter. We go to the next page, please. This is the EBIT walk from Q1 25 of last year to Q1 26.
Speaker #3: Wherein we see absolute profitability increase by around approximately 122 crores, which is an improvement of 80 billion. On a YOY, despite a revenue drop of around 4.7% that we've own you earlier.
Speaker #3: This is primarily coming from savings and variable costs. And better realization. And as further complemented by saving and fixed costs. I would now request Girish to give you a more business insight.
Speaker #3: Can you go to the next page, ase?
Speaker #4: Thank you, Ramlan. And good evening, everyone. Let me start with the proprietary data that you started sharing. So, this is based on the vintage that we have in around 80,000 vehicles.
Speaker #4: So, broadly, you will see in most of the segments, the utilization of the fleets remains healthy. But each one of the segments have also shown a dip in the recent month.
Speaker #4: And that is actually because of the early onset of the monsoon. But otherwise, the level still remains at a good level. The sentiment index has dropped in MCV, in tippers, and all this is also because of the early onset of the monsoon.
Speaker #4: ILCV continues do well. SCV pickup is something which is coming down. And this is also because of the level of satisfaction with the current conditions and current rate being lower.
Speaker #4: In the freight rates, and this is especially for heavy-duty long haul, continue to firm up. For transporter profitability, are also in a good position.
Speaker #4: Next. In Q1, the industry volumes almost remained flat. The marginal growth of around 0.7%. But the total industry volumes in heavy and small commercial vehicles actually dropped and there was a single-digit growth seen in ILMCV and buses and vans.
Speaker #4: In fact, buses and vans actually continue to do well now. The whole of last year and first quarter of this year, think they have done pretty well.
Speaker #4: We transitioned our entire portfolio of trucks to air-conditioned cabins. And as has been the tradition, I think we also complemented it with the launch of higher power-to-weight ratio variants and therefore delivering more value to the customers.
Speaker #4: So, I think we have maintained this trend that whenever there is a regulatory transition, it comes with some price increase for the customer. So, we always give some value improvement along with that.
Speaker #4: The SCV volumes in Q1 declined primarily due to regional demand shifts. And let me give you some flavor to this. So, when I've seen the NOT volumes going down, because there was an impact for a few weeks due to operations hinder, when I've seen the volumes in East are getting impacted to some extent due to the Bangladesh issue, and also what has helped or rather has impacted is the early onset of monsoons, which I said earlier.
Speaker #4: The monsoons started early in June. And therefore, the tippers sale actually became almost flat in June. The ILMCV segment continues to do well. It witnessed volume growth.
Speaker #4: Mainly supporting fruits, etables, manufacturing segment. And within that, I think the MCV has been a standout performer during the first quarter. SCV pickup volumes specifically for Tata Motors have now stabilized at lower levels.
Speaker #4: But we clearly see growth in the pipeline now with the launch of the Ace Pro. Which has been accepted very well at the price points and the alternate powertrains that we have launched it with.
Speaker #4: Buses and vans, the volumes grew almost 12%. And the performance was also influenced by salient shifts in segment. As also some of the tender-driven business, which actually was allocated in Q4 of the last year.
Speaker #4: In electric mobility, we delivered 43 buses; that's it. Same quarter last year, we had delivered almost 750 buses. This quarter, 43 buses. And with this, now we have delivered all our buses as a part of the CESL tender one.
Speaker #4: There is a repeat order that we have received from BMTC. Which we will satisfy subsequently. ASEV continues to be stable in volumes. I mean, we have now more than 8700 vehicles.
Speaker #4: And more so, we launched Ace Pro EV at a very attractive price. It becomes the most affordable four-wheel electric truck and is actually offering better total cost of ownership than three-wheeler EVs.
Speaker #4: And the EMIs are actually equal to electric three-wheelers. We also offer pursued the PLI certification for Ace Pro EV. As far as sustainability is concerned, which is the decarbonization, circularity are performance remains on track.
Speaker #4: Smart City as I said, we have completed the deployment of buses. At all the locations. And our fleet now has completed more than 400 million kilometers.
Speaker #4: And we continue to improve the uptime as well as outshedding. The performance therefore continues to be above the contractual terms. Despite extreme conditions, especially in Q1, in Delhi.
Speaker #4: An interesting development is we emerge as L1, in a tender for a completely new technology of public transportation, which is being introduced in country.
Speaker #4: So, this is an 18-meter articulated bus which can carry 135 passengers at a time. So, something between the current electric bus and the Metro.
Speaker #4: And it also comes with a flash charging technology. Which enables almost 30 to 50% charging in a minute. And this is a tender which had come from Nagpur Municipal Corporation.
Speaker #4: We will also be kind of a technology pilot. But of course, this has already been deployed in around 10 cities in Europe and Australia globally.
Speaker #4: So, this is a new technology. And we are quite excited with this technology. And there are a few more inquiries also from a few other states which have started coming with this.
Speaker #4: Next. On the digital business, we continue to scale up all our businesses in terms of fleet size, with more than 825,000 active vehicles and 80% monthly active users.
Speaker #4: And 59% weekly active users. During the quarter one, we also came up with a very attractive value proposition for the fleeted subscription. With which the subscription percentages have gone up by almost 50 to 60%.
Speaker #4: And this is just the first month. I think that as we continue with more communication, we should be able to do even better.
Speaker #4: Pilot Sarthi continues to do well. And we have around 6% improvement in fuel efficiency in real-life operating conditions. On eBucan, our online spare part sales we have tied up with third-party logistic service providers.
Speaker #4: To deliver parts at the doorstep. And we have two types of services, standard as well as express. So, there is a good traction that we see in the pilot cities.
Speaker #4: We now have more than 9,000 customers and 31,000 retailers onboarded onto the platform. Fleet works wherein we are selling vehicles directly to the customers.
Speaker #4: More than 10,000 plus platform assisted retail. So, these many customers are directly coming to us on the platform. And at an overall level, digitally generated leads led to almost 28% of the retail in Q1, which is growing quarter on quarter.
Speaker #4: Next slide. Now, going ahead, the focus areas we believe the Q2 TIV is likely to improve on a year-on-year basis essentially due to the lower base in Q2 of last year.
Speaker #4: So, post the elections, I think last year Q2 was lower volume. And on that base, we expect a single-digit growth. We also expect a normalization of monsoons and then the festive season starting post 15th August.
Speaker #4: As also anticipated recovery in rural and infrastructure-led demand. I think our focus areas we will continue to drive the trucks market share while maintaining strong realization.
Speaker #4: And as we go ahead, we know there will be an improvement in geographical salience. As well as recovery in tippers, which will aid our shares further.
Speaker #4: In MCV buses, I think we have been doing pretty well with the launch of new products and service offerings. And we have gained handsome share in the private segment for MCV buses.
Speaker #4: This is intercity segment. So, we'll continue this game and as also the ramp-up of volumes in vans. Ace Pro, we started selling retailing from the last month.
Speaker #4: And the production ramp-up has been started. And now, I think we should be ramping up the retails of Ace Pro as we go ahead.
Speaker #4: We have received very encouraging response during the launches, which was done all across the country. Finally, I ink we would, of course, like to sustain the financial performance.
Speaker #4: By consistently delivering double-digit EBITDA margins as well as a strong return on capital employed, that summarizes our performance on CV. Back to you, Balaji.
Speaker #2: Thanks, Girish and Ramlan. Let me pass the baton to Shailesh and Dhiman. Would you want to start off?
Speaker #3: Thanks, aji. Fair to say it has been a challenging quarter for us from multiple fronts. We had a loss in volumes and consequential impact it had on profitability.
Speaker #3: Overall, industry demand as we saw it was soft. With the further stress in the 10 lakh car segment issue we've been seeing for a while.
Speaker #3: Our market share was down $50 billion on account of the adverse Asian shift and some of the transitionary phases we saw in some of our models: Altras, Harry, and Safari.
Speaker #3: Portfolio emission continues to trend well below CAPE norm. So, no concerns there. While the relative mix of CNG and EVs was stable in quarter, we are going see a very sharp increase in EV mix to 17% next quarter.
Speaker #3: Next slide, ase. Our EV volumes have been rangebound at about 5.5 thousand per month for almost a year. Consumer sentiments have been muted due to the overall global narrative we had on EVs.
Speaker #3: And the market expansion was coming in primarily from new competition launches in the last six months. However, happy to observe that in the last two months, we seen a buoyancy in consumer demand in this space.
Speaker #3: The green shoots of which are visible in our market share increasing to 40% in July. This still does not fully reflect the gains on Harriet or EV, which saw a blockbuster opening.
Speaker #3: And we will definitely end the quarter on a much higher note. Next slide, please. Last 12 months with the moderation in demand that we saw, the overall industry channel stock has continued to build.
Speaker #3: A company by periods of very high discounting to 8 in stock liquidation. We have taken a conscious call to be more proactive in keeping our channel inventories in check.
Speaker #3: I'll pass this point for a while as Shailesh is definitely going to pick up in greater detail in the subsequent slide. But the overall moderated our optics, which reflected in the 10% volume and revenue decline.
Speaker #3: The loss in operating leverage and the additional hit in commodity inflation that has been coming in through April has meant that we are down on all profitability parameters.
Speaker #3: Next slide, please. Ice margins have been under stress for a period of time. While our cost reduction efforts are coming through well, it has not been enough to offset the steep loss of operating leverage.
Speaker #3: Adverse model mix and the continued high industry discounting. This quarter, we had the additional impact of commodity inflation. Coming in primarily through steel safeguard duty and FX risk.
Speaker #3: And a residual part of it will also come in Q2. Our ice margins will improve from here. However, they are likely to remain under pressure for some more time as we plan to exit the calendar year with a very low level of model year stock.
Speaker #3: Redoubling our cost reduction efforts improved model mix from launch out from curated variants of Harriet and Safari that Shailesh is going talk about. And hopefully, some price increases in H2 with a strong festive period makes us confident of getting this back up by another 3, 4% in next two quarters.
Speaker #3: The margin improvement story for EVs has been very encouraging. We've seen EV profitability improving on a year-on-year basis even without PLI. With significant cost reductions coming through.
Speaker #3: We were EBITDA break-even with PLI this quarter. And the improved mix coming in from Harriet or EV and the additional vehicles coming onto PLI platform will see continued uplift in margins from here.
Speaker #3: Shailesh, go ahead.
Speaker #4: Thank you, Dhiman. So, let me start with industry highlights. The demand has been muted for the industry in quarter one. We saw flat wholesales and quite a muted growth also in one.
Speaker #4: April actually has seen a strong it was strong at the start. Carrying the momentum for festivities like Bhumi Parva and by the end of March 2025.
Speaker #4: However, in May or June, May and June, we saw a significant slowdown in demand. We see the overall industry demand remains soft. And this has resulted in an vironment of sustained high levels of discounting also to drive retails.
Speaker #4: And this is prevalent across OEMs and civilians. Channel inventory for the industry had also grown by 5 to 7 days in quarter one. And this is basically the uptake in one data that we track.
Speaker #4: And this was due to lower-than-expected retail in Q1 than what the industry was expecting. Volume stresses are actually more pronounced in the sub-10 lakh segment.
Speaker #4: With the declining momentum over recent months, and it has been because of a combination of reasons. Growth in propensity for used cars also, I would say, to some extent.
Speaker #4: On the contrast, 10 plus lakh segment, we have been seeing healthy and. Driven by more resilient customer base I would say. In EV industry, we have seen growth in quarter one primarily due to the impact of new launches.
Speaker #4: Which has added incremental volumes in the industry. It has really been interesting to see strong demand for EVs and high price segments above 20 lakhs.
Speaker #4: And this really goes to show that if EV addresses all the concerns of the customers in terms of range, price parity, best capabilities, customers are willing to shift from ICEVs.
Speaker #4: Talking about Tata Motors, you know, looking at the past one and a half years, the overall demand environment for the industry has been volatile and tough.
Speaker #4: And therefore, in this environment, to drive sustainable growth for the business, we felt it is critical to keep the channel health and focus. And therefore, we moderated our wholesale in quarter one to ensure controlled growth in our channel inventories, which is important to ensure healthy network.
Speaker #4: We also saw the transition of some of our key models in the portfolio, which have new product interventions including Altras, NCE, Harriet and Safari, curated variants.
Speaker #4: We just launched the Adventure X if you call them Adventure X at a very ractive price point and it's very much pre-supported. So, much like any product transition that we see, it involved a ramp down of the volumes for a few months prior to scale up post-launch.
Speaker #4: And these launches at the end of Q1 and start of Q2 have also resulted in some impact on our volumes and profitability because of Harriet. Our new launches, Tiago and Altras, have seen very strong traction in the market.
Speaker #4: Despite the broader trend, it has shown a double-digit decline in this segment. These two products have received a very strong response. In June, we saw a 22% year-on-year increase in bookings for both models combined.
Speaker #4: And this is going to drive growth in this segment in the coming quarters. And the launch of Harriet or EV has been widely successful with a ong launch marketing campaign to support awareness and consideration.
Speaker #4: And we're happy to see that we received 10,000 bookings by day one. Which has established a very strong pipeline for the product going forward.
Speaker #4: And Harriet or EV volume impact is not present in quarter one as Dhuman mentioned. It will be visible from quarter two. We also saw traction for the rest of our portfolio EVs, particularly towards the end of the quarter, especially for Nexon dot EV.
Speaker #4: And we were really surprised that once we offered the lifetime warranty for both Nexon and core EV, there was a sharp increase in retailers as well as bookings in July 2025.
Speaker #4: Next slide, ase. So, in s of key actions and initiatives, you know as I mentioned earlier, the channel health is important to ensure long-term growth.
Speaker #4: In the kind of operating environment today, and therefore to ensure a healthier channel, we maximizing retails in that institutionalize the stock policy. That will guide how we balance our wholesales throughout the year.
Speaker #4: At the same time, you know to ensure that we are aligned to the prolonged demand volatility and to ensure dealer profitability, we have tweaked our S&OP process.
Speaker #4: Which will enable greater alignment between our supplies and market demand. We will also maximize the upcoming festive period through strong marketing campaigns and leveraging the product intervention that I talked .
Speaker #4: Our new launches, you know Harriet Safari, Adventure X variants, just launched a few days back. Our curated variants had very competitive price points. And this will help us drive volume growth and will help improve our model mix.
Speaker #4: In EVs, as Dhiman also mentioned, we leverage the growing demand for our portfolio. Along with the commencement of deliveries for the Harriet EV, we aim to drive volume growth.
Speaker #4: And further actions on product strong marketing, mainstreaming actions we continue to maintain our first-mover advantage. There are already green shoots that we see in terms of recovery in EVs in July 2025.
Speaker #4: Actually, in July was our highest ever bookings. Of the existing portfolio. And our ings excluding Harriet EV grew by 25% both in levels that we were seeing in quarter one, which was a very sharp jump in July.
Speaker #4: Next one, EV, particularly we saw strong consumer interest. Especially after the announcement of lifetime warranty. And booking went up in July by 55% over quarter one.
Speaker #4: And Harriet EV we have had a blockbuster launch. I talked this. We achieved the highest ever retail also in July 25. It was 40% more than quarter one levels.
Speaker #4: And we are yet to see the full impact of Harriet EV retails from August onwards. Therefore, the bond market share for EVs, which had gone down to the 35% level, bounced back to 40% in July.
Speaker #4: And we are pretty much on track to, as we have been mentioning, a progressively move towards the 50 plus percent market share level in the coming quarters.
Speaker #4: That's it from my side. Back to you, aji.
Speaker #2: Thank you, Shailesh. And Dhuman, a quick summary. I'll wrap this up fast. Despite the tough quarter in terms of numbers, growth-wise, I think cash profit over tax ahead of investment spend.
Speaker #2: So, prudence continues. And the only swing that you see is on working capital that is seasonal that will reverse itself. Next slide, ase. Investment spending is in line with plan.
Speaker #2: And don't expect to overshoot this. It's steady across years as well. Next slide. So, where does how do we see the future ahead? I think from a global demand perspective, I ink it's fair to say after hearing Richard also, you would have got the same message saying that the global demand is likely to remain challenging in the short term.
Speaker #2: It's also a bit confusing. Therefore, that is the situation on global demand. Domestic demand, on an underlying basis, should start improving gradually as spending continues, lower interest rates persist, and exciting product launches, along with the festive season, begin to kick in.
Speaker #2: And therefore, our focus remains focused on what we can control. And execute our strategies flawlessly. These are the individual verticals and it is there for all industry.
Speaker #2: That's what the Shailesh, Girish, and Richard just talked about. So, don't want to repeat that. With that, let me then turn you over to questions.
Speaker #2: We have about 19 of them so far. And let's get started. So, a good mix of questions coming from across the board. So, let me try and start with the ones that just give me a minute, please.
Speaker #2: Okay, the first question coming from Raghu, Dhivarma. Richard is coming your way. That is a lot of questions on tariffs. And question is if your account how are you accounted for it, number one.
Speaker #2: Second, trust in terms of, is there any rollback possible to May 8? That's the second set of questions there. And how do you plan to mitigate it in terms of pricing?
Speaker #2: And while you're on it, could you also provide clarity on the emission compliance provisions related to the U.S.? Can you also pick up the entire U.S. tariffs emissions accounting?
Speaker #2: How do you intend to navigate it all in one shot?
Speaker #1: Okay, let me give it a go. Right. Tariffs in the US. So, they have been 25% is the tariff that Trump announced in his section 232 executive order.
Speaker #1: Okay, in effect, it's essentially the start of the quarter. That tariff is on top of the standard most favored nation tariff, which was 2.5%. So, essentially, through the entirety of Q1, we have been booking the P&L at 27.5% tariffs from cars exported from the UK.
Speaker #1: And cars exported from Europe. There is absolutely a chance that we will get the tariff reduction to 10% in the UK backdated to the 8th of May.
Speaker #1: We are working with the relevant governments to make sure that that happens. As that is what was included in the original deal. However, it has not yet been enacted.
Speaker #1: And therefore, we haven't got sufficient certainty of that to book it in the account. So, these accounts in Q1 assume 27.5% flat throughout the quarters.
Speaker #1: In terms of P&L, I mentioned to you earlier on that in terms of cash payments, you pay the US tariffs one month afterwards. So, we have paid two months in the quarter of the much higher tariff level.
Speaker #1: The third one, which we will have paid in July, will come in cash in Q2. I saw another question around tariffs. When do you pay them?
Speaker #1: You pay them when the vehicle lands on US soil. So, 's not related to wholesale. It's not related to anything other than that. When the vehicle lands in the US.
Speaker #1: So, in terms of what we have done, we reacted as quickly as we could, as you know, in s of stopping shipments and making sure that we had a very strong dealer stock going into the quarter.
Speaker #1: The first thing that we did was reduce some of the sales allowances for the VME levels. Because that is a quicker thing to do for us than changing price.
Speaker #1: We have subsequently changed prices a little bit on 25 model year Range Rover. Went up a couple of percent. And we have announced increases on the 26.
Speaker #1: So, we are taking some price. We are taking some variable marketing reductions as well as a partial offset to the tariff cost. In terms of emissions, the so-called "one big beautiful bill" that was passed set federal CAFE levels maximum 9 to 0.
Speaker #1: That was passed on the 4th of July. We used the fact that that was substantially enacted in law at the time to release our balance sheet reserve for federal cafe fines.
Speaker #1: That stood at a circa 120 million pounds. There were other changes in terms tariffs globally, including the tion sorry, not tariffs. In s of emissions cost globally, including the introduction of some costs in Canada for model year 26.
Speaker #1: And changes in the UK, etc., etc. So, the net effect for us that you'll see on the report of all of the emissions changes globally was 76 million pounds better on a year-over-year basis.
Speaker #1: But the absolute balance sheet change that we reported in this period was £120 million. Oh, I covered most of the questions.
Speaker #2: Could you also cover the counting piece, Richard?
Speaker #1: Yes, sorry, the counting piece. It's shown in cost of sales. So, it's not shown as the revenue item. It's shown in cost of sales.
Speaker #2: Yeah. Thank ou. Probably I'll come to you, Shailesh. I think a lot of things around launches also about your EBITDA margin guidance from here on.
Speaker #2: As well as EV production, railroads, particularly here in India. And how do you see the discounts playing out out here?
Speaker #4: Sure. As far as Sierra is concerned, it is very much on track. We had always mentioned that this is going to get launched in H2.
Speaker #4: Whether it will be Q3 or Q4, I think we need to let you know when we are closer to the date of the launch.
Speaker #4: But it is on track. As far as profitability is concerned, I ink Dhuman has covered this in greater detail. We are very committed to bringing it back to the double-digit EBITDA level.
Speaker #4: The next one or two quarters will be challenged. But you know the operating leverage coming back, the model mix improving from here on, and the potential price increase that Dhiman mentioned in H2 of the year. I think all these are going to help us.
Speaker #4: And also, as you know, the first quarter was impacted because of IPL spends. That is getting normalized marketing spends that need to be doing.
Speaker #4: So, I think beyond that, I'll again ask Dhuman to later on talk about any additional things that we have missed for here very confident of coming back to these EBITDA levels in the next two to three quarters.
Speaker #4: Now, the other question is EV production. You know, vis-à-vis the railroad, we have a challenge that we are seeing. I think we have covered, as far as the stock is concerned, for the next two to three months.
Speaker #4: And we have created alternatives, you know, to deal with the situation. Of course, it means alternative sourcing from, you know, beyond China also, but also seeing wherever possible we can avoid railroad. I think all these options are being looked into.
Speaker #4: So, hopefully, we should not be affected because of the railroad inventory issue that is going on. The next question is, how much is the increase in discounts on a quarter-on-quarter basis?
Speaker #4: As I said, that we have been very prudent in terms of not allowing stock to increase too much. While we had to do you know discount we had to you know counter the competition discounts in certain segments, but this increase on quarter to quarter basis did not have been more than 50 bips?
Speaker #2: Yeah.
Speaker #4: Yeah, so
Speaker #4: That kind of a number. Yeah, that's it. I think.
Speaker #2: Yeah.
Speaker #4: Yeah.
Speaker #2: Thanks, Shailesh. Girish, coming to you. In terms of utilization, the dichotomy in the data, I think in the level of utilization, what levels do feed itions come in?
Speaker #2: And the utilization in HCV cargo side, why is industry DIV still dropping? And what's affecting the sentiment? If you could just cover that.
Speaker #4: Yeah. So, I think you will appreciate that this feed ation metric and data is something that we've started generating for the last few quarters.
Speaker #4: We don't have a correlation today to very specifically say that beyond a particular level of feed utilization, it leads to new purchases. In addition to that, I think this is also dependent on a few other factors.
Speaker #4: Like you know what are the projects undergoing in that particular state? How are the other end-use sectors of commercial vehicles doing, etc.? So, I think the only thing I would say is that the feed utilization actually continues to be healthy.
Speaker #4: And at a level as compared to the same period last year. I ink you also have a question that despite the feed utilization being good, why the volumes have gone down.
Speaker #4: So, I would say that actually this feed utilization also was seen in good pipeline generation. But throughout first quarter, we saw that generally there was a postponement in purchase decision-making by customers.
Speaker #4: And then later on, of course, there was an early onset of the monsoon, which therefore impacted the volumes, especially in the month of June. So, despite being the end of the quarter, the retail volumes were not so high.
Speaker #4: And we immediately aligned our offtake to the retails. In addition to that, I would say that there are a few states where the payments in government projects have been delayed.
Speaker #4: In at least towards the end of Q1. And that was also something which was impacting the retail volumes in Q1. There was.
Speaker #2: Balaji.
Speaker #4: another question, Balaji, .
Speaker #2: Yeah. So, a related point was on delinquency. I think a couple had asked it earlier. Related point, how do you see delinquencies in the CV segment?
Speaker #4: So.
Speaker #2: Financing
Speaker #2: availability?
Speaker #4: Yeah. So, delinquencies, I think in buses and vans, there is no issue whatsoever. In ILMCVs, and HCVs, they remain at a low level. I think in HCV pickup, the delinquencies amongst the all of the segments, they do remain high.
Speaker #4: But the good thing is that Tata Motors' portfolio has shown, based on the financials, that the small commercial vehicle and pickups segments have actually improved in early delinquencies, which we have observed in the first six months.
Speaker #2: Thank you, Girish. Shailesh, coming to you. This on Café Three. Girish, you're from Oakland. Considering Café Three guidelines are yet to be finalized, do you expect pushback of timelines?
Speaker #2: And what do you expect growth for PV in FY 26? And any material pickup in demand do you expect in second half? Based on lower tax and interest rates.
Speaker #2: You know.
Speaker #4: As far as cafe three guidelines are concerned, you know we are in touch with the Ministry of mainly you ow the Bureau of Energy Efficiency.
Speaker #4: And we are having this discussion with the Ministry of Power also. But we don't see any change in the timelines. The discussions are more around the extent of stringency that is being asked for.
Speaker #4: So, I don't see any pushback as far as timelines are concerned. The second question is more in terms of the expectation of domestic PV industry growth seen.
Speaker #4: The first four months have shown absolutely 0% growth. In fact, the last two months have been negative by 3%. If we maintain this trend for the full year, we are projected to see less than 5% growth.
Speaker #4: And that's what I would like to maintain for the industry. In the second half, there has to be actual material pickup in demand.
Speaker #4: Otherwise, you know we would not be in even around 4% to 5% growth. So, I believe because of all the actions that you have also mentioned in your question, lowering lower tax, and interest rates, the repo rate has been reduced.
Speaker #4: And now it is reaching the retail level as well. We also believe that rural demand is going to be strong post-monsoon.
Speaker #4: So, all this is a strong festive period because we are seeing the demand pattern pretty much mimicking what we had seen in the last financial year.
Speaker #4: And last financial year had a very strong festive as well as December sales. So, we believe that the trend would continue. So, quite hopeful of this.
Speaker #4: And then the last question is on share of retails from digitally generated leads. I think this would be about 10% to 15%.
Speaker #2: Okay. Thank you. Richard, coming to you. In terms of demand conditions in the US, UK, and China, how do you see the Q2 retail wholesale trends?
Speaker #2: I will probably add to it also with your comments on inventory as well.
Speaker #1: So, on demand, we have a certainty, I think, that's been so pervasive over the last few months. It has definitely impacted demand for the ticket luxury purchases.
Speaker #1: Across the board. So, many of our clients are small business owners. Manufacturing the same tariff challenges as we are. Now that we've got some certainty going forward, I ink we would expect this to slowly recover.
Speaker #1: But demand has been weaker than we would like since our year-end. In terms regional splits, if anything, the US is remaining still relatively solid.
Speaker #1: China, definitely since the introduction of the China luxury taxes, has continued to slow. The UK is reasonably stable. And Europe, I think, is the market where that small business owner uncertainty has probably had the most effect.
Speaker #1: So, I'd say certainly muted. In the first quarter, driven by the uncertainty of the macro environment that we all face. But as that starts to stabilize through the back end of the year, we would expect that to recover slightly.
Speaker #4: And while?
Speaker #2: Sorry, Balaji. Apologies, finish, please.
Speaker #4: I was going to talk in terms of inventory. So, our retailer inventory levels are at probably the top end of our range at the moment.
Speaker #4: So, we would not expect wholesales and retails to significantly diverge from here. And we'll manage them together with our retailer body. We still have a stronghold bank.
Speaker #4: And we are expecting the, as I said, we are expecting demand to slowly recover as certainty, well, lack of uncertainty takes hold.
Speaker #2: Yeah. Could you just also, since you're commenting on other markets, talk about the Middle East as well? Now, it hasn't been asked, but it's just a logical next question coming up.
Speaker #1: Yeah, the Middle East is a really strong market for us. This quarter was a little bit affected by the fact that I think, as a result of the conflict over in that zone, a fair few of them left the region on their summer journeys earlier than usual.
Speaker #1: But particularly the Range Rover and Defender have remained an absolutely core market for us. And that is why we, both externally in our reporting and also internally, have now separated out Nima from the other overseas markets so that we can give it the attention it needs. It is definitely ripe for some further growth for Range Rover and Defender.
Speaker #1: ultimately, Jaguar as well.
Speaker #2: Okay. Thanks, Richard. Girish coming to you. In s of CV fully outlook, we heard from Shailesh how do you see CV fully ?
Speaker #4: So, I think we've still maintained that for the entire year—5%. And within that, I think HCVs should do a similar around 3% to 5% kind of growth.
Speaker #4: ILMCV a bit lower. HCV pickup probably will remain flat in volume should pick up from the festive season. In terms buses and van, while the projection is flat, but I think Q1 has done well.
Speaker #4: But Q1 and Q4 are generally good for buses and vans. I think it is very important to see how Q2 and Q3 pan out.
Speaker #4: And also, what kind of tenders come from the government, both ICE and electric vehicles? From that, we can say whether the volumes will remain flat or if there will be good growth even in buses.
Speaker #4: So, that's where we see the full year balance.
Speaker #2: Maybe this is more Ramlan on your side. On the margin performance, can you let us know why gross margins have improved quarter on quarter? Just on a uple.
Speaker #2: In light of higher steel prices and AC cabin impact, are these sustainable? And how much of the PLI was coming onto it? Then I'll probably get to PLI for a demand.
Speaker #2: I'll come to you in terms of PLI for PV for this year as well.
Speaker #4: Yeah. So, thanks, Balaji. So, I think the reason for the Q1 Q2 margins being largely impacted by a combination of a couple of things.
Speaker #4: One, I think better realization. And then the revenue savings and international market and the downstream business has been higher than we only have thought of.
Speaker #4: o, that's kind of been plus on the margin perspective. On the question on sustainability, I ink Girish just touched upon and the focus areas.
Speaker #4: That's a clear focus area for us to sustain robust financial performance. So, we kind of ok forward to it. There's a question on PLI.
Speaker #4: So, I think the Q1 accrual of PLI was around 25 crores. And as Girish rightly said, we expect the volumes to be increasing in the bus.
Speaker #4: So, as the year goes by, we see this amount going up for us.
Speaker #2: Dhuman, could you just cover off PLI for PV as well?
Speaker #4: Yeah. So, I think, Balaji, we have given guidance that our PLI will be about ?110 crore to ?120 crore a quarter. We are on track.
Speaker #4: The PLI this quarter was about 115 crore. What is important to note is that you know you have a base year effect of FY 21, which kicks in in Q1.
Speaker #4: So, ?20 crore gets deducted from the gross. And then there is a discounting impact because the cash is going to come next year. So, our P&L accrual was about ?87 crore.
Speaker #4: But for the full year, this only takes into account the PLI we are accruing on Punch and Tiago. We have Nexon coming in and Harriet.EV.
Speaker #4: So, for the full year, we are on track to get about 700 crore PLI accrual for full year.
Speaker #2: Yeah.
Speaker #4: Thank you.
Speaker #2: Richard, coming back to you. Timelines on deliveries of RR Electric and Jaguar Electric. And as well as implication on China demand. You covered it a little bit.
Speaker #2: Maybe there's more questions coming up because it's got bumped up. Implication on China demand post the luxury tax?
Speaker #1: Okay. So, let me let's talk about that timing first. Let me answer the first point. So, we're lucky in that our main vehicle architecture, the ones that sits under Range over and Range Rover Sport, is fully ICE bed flexible.
Speaker #1: The vehicles go down the same trim and final line. They go down virtually the same body shop line. So, we are really flexible. We can launch when we're ready and when our customers are ready.
Speaker #1: We expect it to be on sale next year. And I'll oll out the other bets will go from there. For Jag, the on-sale dates are going to vary a little bit by market.
Speaker #1: But I ink what's really important especially where demand is that in both cases, we are not going to compromise on the quality of the vehicles or their capabilities.
Speaker #1: It's really important for us that these beds are in fact true Range Rovers, true Defenders, true Jaguars. They will be brilliant exemplars of their brand.
Speaker #1: And that's why we are confident that we can make them successful, not just in the Western markets but also in China. In terms of demand in China at the moment, it's still I mean, the change in luxury tax was we had about 48 hours notice like the rest of the industry.
Speaker #1: And it came in mid to late July, I think. So, only two maybe three weeks ago. So, a little bit early to see what's appened.
Speaker #1: What we have done for the moment for the interim is we have pulled our retailers who know our not in the best financial shape generally.
Speaker #1: That's not something specific that they are. That's industry-wide. We have told our retailers that for the short term, we will take the cost of that luxury tax.
Speaker #1: The network, the retailer network over there is fragile enough without having to take that. So, in the short term, before we come up with a medium-term plan, but in the short term, we will take the cost of that.
Speaker #1: It is an extra 10% on the list price of the vehicle.
Speaker #2: Thank you, Richard. Maybe we'll skip to another topic in terms of just from Chandramoli Goldman Sachs. We've been trying to skip to EV and I'll come to JLR in a minute.
Speaker #2: There appears to be a year-on-year drop in EBITDA margin for electric cars. Could you aborate the rationale? At the same time, given the low volume growths, will the discounting be high throughout FY 26?
Speaker #4: So, you know year-on-year EBITDA margin for electric cars you ow this is not guiding, especially it's not the right question because we have a number of markets.
Speaker #2: Sorry, sorry. I got you.
Speaker #4: So, I'm going to cover the PV one, which is 1% to 2% PV volume growth. That's this potentially there. So, see, you know we have been seeing that there are clear segments that are specific models.
Speaker #4: Where we are seeing a significantly high level of discounts. Main pressure is you know in this less than 10 lakh segment is where I set.
Speaker #4: Where the demand is under stress. It has seen a nearly 15% decline you know as compared to last year. So, this segment is under stress.
Speaker #4: And we'll ue to see discounting. We are also now started seeing you know kind of a flattish trend in SUVs. And that is also something which we need to watch out for.
Speaker #4: How the discounting environment would be. I think where the trend will remain strong, we have seen in the first quarter CNG continuing to do well.
Speaker #4: Good 20% growth. This year, we also see that you know EVs are going to see about 70%, 75% growth. The next question is around value which took the demand environment internally.
Yes, I see. You know, uh, when you compare, uh, you know, with any high SUV segment cars, you know, irrespective of whether it is an EV or ICE, this is a car that is significantly superior in terms of not only performance but all the kinds of new tech features that have gone inside this car. Whether you talk about the whole Dolby experience or the kind of screens that have been given 540°, uh, you know, view or, for example, uh,
You know, the upper which is also Auto auto parking someone mode and all this is something which people did not imagine. This is this kind of a car.
And on top of that, you know, this is the first team which is all interest.
And people saw its capability, you know that the elephant trucks are flying, people were just amazed and surprised with the capability that a Navy can, you know, really deliver. So those were the primary reason and that's the reason why this is being, you know, completely compared not only compared with the highest, but it is being seen. Significantly Superior 50% more in terms of talk what you get in this segment so that that has been really taken well.
And from a, you know, any perspective when I see from that means the barriers, which used to be around range. This delivers a 500 kilometer range, real range, uh, which breaks the barrier around range. You know, which used to be a concern range, anxiety used to call. Uh, then all of this comes, uh, at no incremental price. This is that price strategy rather if not slightly better than ice. So I think it has just picked all the boxes. What people could imagine or, uh, it has more than picked the boxes that people expect, uh, in this kind of a category of car. And this is become a highly desirable vehicle in the segment.
Do we intend to participate again?
Right. So
Yes, I think we have been engaging with the government for almost last 3 years.
And therefore over the last 3 years, we are not participating in the tender.
We had 2 specific requests.
1 is a payment security mechanism.
and here in,
uh, we work with CSL and some of the other government agencies.
And a payment security mechanism based on the 1 for solar energy corporation has been worked out.
And it is there currently in the tender documents. So this, to a large extent, meets our requirement on payment security manager.
our second requirement was about,
Having an asset like model.
Uh, while this has not been addressed, we and exactly the way we want.
but even this to a good extent addresses, what we
were expecting, but here in
I think.
This will now call for a formation of a consortium.
With an operator who can run the buses.
How can I share, who can bring in capital?
And therefore I think we will now be working with financial as well as operators whom we can bring together.
Former Consortium.
And our Smart City subsidiary then we'll be part of that particular Consortium.
And OEM Tata Motors will send buses to this Construction.
So that's something that we will work out.
Meanwhile, I think, uh,
There is a good understanding that we now have on, uh,
The profitability for uh operating the buses. I think we have been able to uh develop or build this model over the last 3 years with good experience.
and therefore we know what are the value creating ports, Etc, which is what
we will participate in the upcoming tender.
Balaji is another question on is is pro and is probably just for the benefit of what are the feedback on as and as Pro EV, and how do you think is likely to wrap up your volumes? Yeah,
So I must say that uh, is pro EV and also a pro by Fuel petrol. All 3 of the feedback has been very good
I think the value proposition.
Uh, has been appreciated very well, especially the price at which it has been launched.
And the capability and features that have that have been given.
We also had a very unique uh, launch wherein we did launches
Intensities across the country. It was a 2-day affair wherein.
Not just the media, but we also got in the influencers, key customers, financials. All of them were there, and all of them were also made to drive the vehicles. So we have very extensive feedback from these drive sessions.
Generally, the participants have appreciated the pickup.
The Comfort suspension.
Power.
And I think the many of them have fed that it's actually offers
a very good option for intracity Last Knight Transportation.
In terms of capacity and ramp up, we don't see any issue. And uh, we are going to in fact
start ramping up from this month itself, not just TV but even uh the bike wheel and petrol version
Balaji, I'll just also answer jaintia last 1. Question about, uh, you know, prey due to AC Norms introduction. So Janice, I I'd like to tell you that
Frankly, we are not seeing any prey.
There has been no prey whatsoever in uh, at CVS and Island series due to the AC. Now
Which in my view is a good thing. I mean, it shows the maturity in the market.
And, uh, in terms of your question about how the market will pan out over the next 9 months.
Since the q1 has been more or less flat.
3% to 5% growth that I have spoken about should now happen over the next 9 months.
Thank you Gish. Uh,
rich is coming to you, maybe to wrap the whole tariffs. In fact up, uh, question from couple, uh, now that the tariffs are clear both in EU and in UK, what is the, how much will the impact be? How much will reduce from the current quarter in terms of bits? Watch how you're doing this?
Okay, only only the assumption that the 15%.
Somewhere around. The first of all, remember, that is the the 1 UNC is still in the market.
um, we think this year
Um, when you take it in the hole for a full FY 26 year, you're probably talking somewhere between 500 and 600 million effect.
Um of tariffs for the year, net of the offsetting measures that we put in on a let's say more Perpetual basis on a 10% and 15% basis is probably more around 3 to 400 range.
however I will carry out that by saying, look, a lot of it will depend on how the market reacts in terms of demand and in terms of pricing
So, those would be sort of the type of estimates that I would.
The same with you there. Uh,
This, despite the, uh, you, you had good U.S. retail trends on a year-on-year basis, even in July, is it? Because dealers are selling through inventory, or customers are expecting full pass-through on tariffs happening in the coming months. Or what's the read there?
Um, I think the property is a little bit of an expectation by customers that, um, prices are more likely to be rising than being, so getting in and out. Um, also typically around this time of year in the US, as the move from 25 model year to 26 model year cars, so retailers will be trying to get rid of. They will try to be selling their 25 model year cars before 26 lands on their shores. So, there's a little bit of seasonality that normally happens in the couple of months before you change your model year over in the US.
For next, 1. Easy powertrain for the higher wattage. I will look into the Shift Supply base to India, and when do you expect it to be 100% locally sourced?
See we are you know as far as battery pack is concerned and the key driver is concerned. It is completely localized. So uh, it is already been made in India.
Okay. Uh,
Richard, uh a comment on Forex. If you do not pick up. Uh you know this is basically with the USD appreciation. Uh I suspect you're listening to pound appreciation here. How a dollar a week does is already in the p&l and assuming that due to hazing bulk of the impact of years to come.
Um, so yeah, sure, we have a reasonably good um, hedge portfolio. Actually the thing that we're most exposed to is the dollar euro cross because we're Long Dollar, Short Euro. So the move of that over the last. So during the quarter, uh, I know it's currently at 116, I think it was probably at 104 105 at at the start of the year. That's the 1, that hurts us more. Um, and uh, we're we're keeping a close eye on that cross to make sure it's it's it does not get any worse for us.
Okay, I think uh, the nice uh questions. Most of it, we have covered already. We've covered accounting, we have covered pla. We've got JL vme uh I think the code everything is
So let's see if there's any other questions that we have not covered. Uh it's an interesting question from uh couple uh Girish coming to you. In terms of consumer sentiment, how exactly we measure it because 1 would expect that with the good monsoons. The sentiment should have picked up but that's not playing out as you as 1 would expect. What's what are we missing?
Yes. So, as I've been saying, I think the sentiment is actually.
A combination of 2 factors.
Which is satisfaction with the current status.
And, uh, how do they look into the near future? The next 3, 6 months.
and I think, uh, what we've seen across the segments
Apart from maybe CV.
I think the satisfaction with the current status is,
Is something which has dropped.
From Q4 to q1.
But the good thing is that.
The expectation from the future still remains optimistic. So, I think that's how I would break down.
The sentiment survey again in almost all the segments. And I think to a large part I would say it is also expected.
In the sense, I think the early onset of monsoon.
This year.
Okay. Uh,
This is, uh, Richard coming your way on financing. Um,
1 is a cash flow recovery in the rest of the year. What would be the key drivers for it?
Any year and inventory up swing expected because of managing the quarters and any refinancing plans that you have in place, the event talked about the UKF uh financing. Maybe you could cover that as well as part of that.
Yeah. What what I want to do that first so um, we signed a few days ago, a 1 billion pound UK tax loan facility,
Um, in the UK to boost our liquidity.
and that is,
That is is strong. Not yet drawn but it's it's going to be available very shortly. Um, our next maturity is a 700 million dollar bonds that is due in October.
So we boosted, our short-term liquidity. The question, is the first question cash flow recovery. So, obviously, um, we pay a couple of hundred million pounds in tariffs in q1 and, uh, that will be that significantly smaller in in future courses. We will have working capital come back uh in our favor again. Remember out of our 758 million pounds. Um,
Hit in the culture in terms of operating cash, £616 million of source of capital and the vast majority of D6.
Also, normally for us, we would have higher wholesale volume in the second half of the year than in the first half of the year.
So there's a few things that um, that I would play on in that um, the question around.
The are we planning on adjusting delivery timings for the first second is the 65,000 unit, studies applicable up until 31st of December this year.
Um, at the moment, we're not anticipating that. Uh the UK industry will will breach that, so we're not changing our plans. As of next year. The way that quota works is is actually a quarterly quarter of the 25,000 units. Any part of the first quarter that isn't used gets added to the third quarter's number. Any part of the second quarter of it isn't get used, so we can get you get added to the fourth quarter. So there is some flexibility during the year and we'll manage that as we get through 2026 9 in 10, to I mentioned beforehand, with our intent with company is to work with the UK and US governments to have something that is absolutely not the free Brawl. By the time, we start next year's 100,000 uh unit um,
Catch 3.
Great.
Thanks. I think with this, you have come to the last of the questions. So once again, thanks all of you for your probing questions. Uh, just to summarize uh, a very challenging quarter on multiple fronts particularly on the jaw but I think uh we are coming out of as we get finished this quarter and come out into this uh Q2 and then subsequently in the second half, lots of things that are under underway in terms of interventions uh uh being jaw CV or and TV which will help us sequentially start improving from here on and 1 1 does expect to have a pretty strong second half as these things come into play. So thank you once again and more than happy for uh clarifying. Any further questions that you may have do feel free to reach out to the investor relations team. Thank you. Speak to you soon.
Thanks guys.