Tata Motors Ltd Management Discussions

Economy Overview

India

Real GDP or GDP at Constant Prices is estimated to attain a level of 178 lakh crore in FY25, against the First Revised Estimate of GDP for the year FY24 of 167.50 lakh crore.

The total expenditure that the government is expected to spend in FY26 is 50.65 lakh crore. When compared to the last financial year, this has increased by 7.4%. Real GDP has been estimated to grow by 6.5% in FY25. Nominal GDP is expected to witness a growth rate of 9.9% in FY25. Both the growth rates are revised upward from their respective First Advance Estimates.

India accomplished a significant milestone, with the sale of one lakh electric vehicles (EVs) in FY25. According to NITI Aayog and the Rocky Mountain Institute (RMI), Indias EV finance industry is likely to reach US$50 billion ( 3.7 lakh crore) by 2030.

The Indian automotive market is expanding, driven by rising income levels, urbanization and increasing consumer purchasing power. Initiative like Production linked incentive scheme are aiding several auto makers to invest in EV segment. The industry is focusing on reducing emissions and integration of advanced technologies like connectivity and smart mobility solutions.

Global Economy

In FY25, the global economy experienced moderated growth, influenced by persistent inflationary pressures, tight monetary policies in developed markets and geopolitical uncertainties. These factors contributed to cautious consumer spending and disrupted global trade flows. Amid trade uncertainties, global growth is expected to slow to 2.3% in 2025 from 2.7% in 2024.

The US economy has been resilient, driven by strong growth in the services sector, a robust labour market, and high real wages. Europe, including the UK, has faced softer growth due to the war in Ukraine, high energy prices, and slowdowns in manufacturing and services. Chinas growth was weaker than expected, with a slowdown in the real estate sector and industrial activity. The Asia-Pacific region is projected to be the fastest-growing.

The automotive industry faced significant challenges amid these macroeconomic headwinds. High interest rates and tighter credit conditions in key markets such as the US and Europe, dampened consumer demand, particularly in mass market segment.

Automotive Operations

Automotive operations are the Companys most significant segment, which include:

All activities relating to the development, design, manufacture, assembly and sale of vehicles as well as related spare parts and accessories, and:

Distribution and service of vehicles;

The automotive operation is further divided into following reporting segments:

Tata and other brand vehicles Commercial Vehicles;

Tata and other brand vehicles Passenger Vehicles;

Jaguar Land Rover; and

Vehicle Financing.

Vehicle Financing - Merger of Tata Motors Finance Ltd. with Tata Capital Ltd.

The Board of Directors of Tata Motors Finance Ltd ("TMFL"), a wholly-owned step down subsidiary of the Company, at its meeting held on June 4, 2024, approved (subject to the requisite regulatory and other approvals) a Scheme of Arrangement for amalgamation of the TMFL with and into Tata Capital Ltd ("TCL") with appointed date of April 1, 2024. The Scheme has been approved by the National Company Law Tribunal ("NCLT"), Mumbai Bench on May 1, 2025. TMFL and TCL has received all other necessary regulatory approvals and the scheme is effective from May 8, 2025. Through TMFL we were providing financing services to purchasers of our vehicles through our independent dealers, who act as our agents for financing transactions, and through our branch network. With the merger, vehicle financing services is with Tata Capital Ltd.

Tata Motors Finance Holdings Ltd (CIC) and TMF Business Services Ltd (Leasing company), continues to be part of our operations and is being reflected as vehicle financing segment.

A. Volumes

Overview of Automotive Operations

The total vehicle sales (excluding China joint venture) for FY25 and FY24 are set forth in the table below:

	FY25		FY24
	Units	%	Units	%
Passenger cars	149,542	11.1%	234,093	17.0%
Utility vehicles	807,723	60.2%	740,751	53.7%
Heavy Commercial	113,406	8.5%	123,276	8.9%
Vehicles
Intermediate and Light Medium	71,620	5.3%	67,304	4.9%
Commercial
Vehicles
SCV and Pick Up	144,283	10.8%	166,629	12.1%
CV Passenger	55,395	4.1%	48,262	3.5%
Vehicle
Total	1,341,969	100.0%	1,380,315	100.0%

We sold 941,071 units of Tata Commercial and Passenger vehicles and 400,898 units (excluding wholesales from the China Joint Venture) of Jaguar Land Rover vehicles in FY25.

Tata and other brand vehicles

The following table sets forth our total wholesale sales worldwide of Tata Commercial Vehicles and Tata Passenger Vehicles:

	FY25		FY24
	Units	%	Units	%
Tata Passengers Vehicles	556,367	59.1%	573,541	58.6%
Tata Commercial Vehicles	384,704	40.9%	405,471	41.4%
Total	941,071	100.0%	979,012	100.0%

We sold 28,966 units outside India in FY25, as compared to 29,848 units, in FY24.

We maintained our leadership position in the Commercial Vehicle category in India, which was characterized by increased competition during the year. In the Passenger Vehicle category, we are now the third largest automotive Company in India, based on Vahan market share.

The following table sets forth our market share in various categories in the Indian market based on Vahan Registration volumes:

	FY25	FY24
	%	%
Passenger Vehicles	13.9	13.5
Heavy Goods and Motor	48.8	49.6
Vehicles (HGV+MGV)
Medium Goods Vehicles	37.5	44.2
Light Goods Vehicles	34.3	37.8
CV Passenger Vehicles	35.0	38.4
Total Commercial Vehicles	39.1	41.7

Source: Society of Indian Automobile Manufacturers Report and our internal analysis.

The following table sets forth our total domestic wholesales and retails of Tata Commercial Vehicles and Tata Passenger Vehicles: -

	Wholesale Volume (In Units)			Retail Volume (In Units)
	FY25	FY24	% Change	FY25	FY24	% Change
Tata Commercial Vehicles	358,431	378,165	(5.2%)	361,144	376,896	(4.2%)
Tata Passenger Vehicles	553,674	570,999	(3.0%)	553,171	537,957	2.8%
Total	912,105	949,164	(3.9%)	914,315	914,853	(0.1%)

Passenger Vehicles in India

The following table sets forth the breakup of the wholesale sales in various categories.

Category	FY25 (In Units)	FY24 (In Units)	Tata Passengers Vehicles Sales (In Units) % Change
Utility Vehicles	432,735	388,486	11.4%
Passenger Cars	120,939	182,513	(33.7%)
Total	553,674	570,999	(3.0%)

In FY25, we launched new nameplate with the Tata Curvv and Curvv.ev, which was the first Indian SUV coupe in the mass segment. The Tata Curvv combined stylish design with performance, powered by a new Hyperion GDI engine. The Curvv.ev also pushed boundaries offering real range of more than 400km, while also achieving price parity with ICE. We also expanded our twin-cylinder CNG portfolio with the addition of Nexon iCNG, which is Indias first turbocharged CNG vehicle. We strengthened the Nexon.ev with a 45kWh battery pack offering more range to customers. We also refreshed the Tiago with the Tiago 2025 intervention, with reimagined interiors and advanced tech. At the Bharat Mobility Global Expo 2025, we showcased our recent and forthcoming launches including the Tata Sierra, Harrier.ev and Avinya X concept.

In the Utility Vehicles category, an increase of 11.4% from 388,486 units in FY24 to 432,735 in FY25, represented a strong demand for Tata Nexon, Punch, Tata Harrier and SUV Coupe. This also reflects customer preference of utility vehicles over hatchbacks.

The decrease in the Passenger Car category (Tata-brand vehicles in India) in FY25, represented demand of Tiago, Altroz and Tigor, including CNG variant and EV variant.

Commercial Vehicles in India

	Tata Commercial Vehicles Sales
Category	FY25	(In Units) FY24	% Change
	(In Units)	(In Units)
Heavy Commercial	106,485	116,488	(8.6%)
Vehicles (HCV)
Intermediate and Light	62,258	58,923	5.7%
Medium Commercial
Vehicles (ILMCV)
SCVs and Pickups (SCVPU)	138,913	159,043	(12.7%)
CV Passenger Vehicle	50,775	43,711	16.2%
Total	358,431	378,165	(5.2%)

Tata Motors made significant strides across multiple vehicle segments with a focus on innovation, sustainability, and customer-centric solutions. In FY25, over 44 new products and 139 variants were introduced.

HCVs in India

Industry has registered a year-on-year decline. Our volumes dropped by 8.6% in this segment. We introduced the Signa 5521.S with the 5L TATA Turbotronn engine for better fuel efficiency in return empty duty cycles, alongside a range of alternate fuel vehicles like the Prima 5530.S LNG and SIGNA 2820.T CNG. We also launched the Prima 4830.T rigid truck, providing high productivity with best-in-class features.

ILMCVs in India

Our sales in the ILMCVs in India increased by 5.7%. The Intermediate, Light, and Medium Commercial Vehicle (ILMCV) segment registered robust growth, driven by strong momentum in the MCV sub-segment, customer-centric initiatives, and enhanced key account management. Strategic product introductions like the 1416 LPK and 1616 LPT TRPCR addressed demand for higher-rated payloads and specialized applications. We further expanded the portfolio with high-payload variants, including the 407 Gold+ and 710 LPT, catering to the evolving needs of our diverse customer base.

SCVs and Pickups in India

Volume is down by 12.7%, as we faced challenges arising from muted rural demand and tighter credit availability, which impacted retail momentum. We solidified our leadership portfolio with 11 new products, including the Ace Bi-Fuel and the Ace EV 1000, offering enhanced payloads and improved efficiency. The Intra V70 LNT, along with the Intra Gold Series, further strengthened our value proposition with higher load capacities and faster turnaround times.

CV Passenger Vehicles in India

Our sales in the CV passenger vehicles in India increased by 16.2%. The business saw the launch of the Magic Petrol, a bi-fuel (Petrol+CNG) variant, making it an industry-first in the minivan segment, catering to urban school and route applications with improved performance for FY25 flexibility and operating economics. We also introduced a new MCV platform for State Transport Undertakings (STUs), powered by a 5.6L Cummins engine for optimized fuel efficiency and reliability in Mofussil applications. Additionally, we launched a 9m electric school bus with a 10-year battery life, reinforcing our commitment to sustainable mobility. In the intercity bus category, 13.5m and 12m chassis equipped with EMR were introduced for enhanced braking and safety.

Tata Commercial Vehicles and Tata Passenger Vehicles Exports

With a global footprint spanning 40 countries including those in the South Asian Association for Regional Cooperation (SAARC), Africa, the Middle East, Southeast Asia, and Latin America we offer a diverse range of vehicles, including trucks, buses, pickups, and small commercial vehicles. Since our founding in 1961, international business has been a core part of our strategy, and we remain committed to building, strengthening, and expanding our relationships around the world.

Overall sales in International Business (IB) markets grew marginally by 3% in FY25 compared to FY24. The SAARC region recorded a 11% increase, while the Sub-Saharan region experienced a significant 32% year-on-year growth in shipments. Non-SAARC markets accounted for 53% of total shipments in FY25, compared to 55% in FY24. Heavy Duty Truck Range- Prima and Large Bus meeting Euro 5 standards were launched in Kingdom of Saudi Arabia and Qatar in FY25.

Jaguar Land Rovers Performance Analysis

Total wholesale and retail volume of Jaguar Land Rover vehicles (excluding CJLR) with a breakdown between Jaguar and Land Rover brand vehicles, in FY25 and FY24 are set forth in the table below:

	Wholesale Volume (in units excluding CJLR)			Retail Volume(in units excluding CJLR)
	FY25	FY24	% Change	FY25	FY24	% Change
Jaguar	26,862	49,561	(46)	48,445	66,866	(28)
UK	10,273	19,103	(46)	11,600	17,601	(34)
North America	10,393	12,437	(16)	10,808	10,494	3
Europe	2,809	10,521	(73)	5,067	10,198	(50)
China	763	2,884	(74)	17,664	24,605	(28)
Overseas	2,624	4,616	(43)	3,306	3,968	(17)
Land Rover	374,036	351,742	6	380,409	364,867	4
UK	72,159	63,272	14	69,746	62,119	12
North America	118,595	93,186	27	109,471	84,500	30
Europe	68,937	70,316	(2)	66,508	68,055	(2)
China	46,423	49,669	(7)	65,996	79,518	(17)
Overseas	67,922	75,299	(10)	68,688	70,675	(3)
Jaguar Land Rover	400,898	401,303	(0)	428,854	431,733	(1)
UK	82,432	82,375	0	81,346	79,720	2
North America	128,988	105,623	22	120,279	94,994	27
Europe	71,746	80,837	(11)	71,575	78,253	(9)
China	47,186	52,553	(10)	83,660	104,123	(20)
Overseas	70,546	79,915	(12)	71,994	74,643	(4)
CJLR	34,489	48,725	(29)	34,156	50,153	(32)

Jaguar Land Rovers performance on a wholesale basis:

Wholesales (excluding our conditions in China, particularly China Joint Venture) for the FY25 were 400,898 were flat, compared to FY24. Compared to the prior year, wholesale volumes was higher at North America 22%, and down in Overseas 12%, Europe 11% and China 10%. Aluminium supply chain disruptions in H1 FY25 impacted our production and consequently wholesale volumes in that period. Wholesales were also impacted in the full year by the gradual wind down of legacy Jaguar products, many of which reached the end of their production life by December 2024, ahead of the launch of all new Jaguar in 2026.

Jaguar Land Rovers performance on a retail basis:

Retail sales for FY25 were 428,854 marginally down by 1 % compared to FY24. There was a similar story on mix, with retail sales in North America increasing due to a normalisation of vehicle supply levels accompanied by a strong demand for our products in the region. There werechallengingmarket for our locally produced cars - which operate in a highly competitive environment - with retailer insolvencies and credit availability also impacting volumes. Compared to the prior year, retail volumes were higher in North America 27% and UK 2%, whereas impacted in China 20%, Europe 9% and Overseas 4%.

Retails by powertrain

During FY25, we continued to offer electrification options across our 13 nameplates, with plug-in hybrid electric (PHEV) available on seven models and mild hybrid electric (MHEV) available on eight models. In FY25, electrified vehicles totalled 78.4% of our retail sales (up from 75% in FY24) including 2% for the all-electric Jaguar I-PACE, 15% PHEV and 62% MHEV.

Range Rovers historic home, JLRs Solihull plant, is now ready to build pure-electric Range Rover models alongside internal combustion and plug-in hybrid siblings. This highlights the incredible versatility of our Modular Longitudinal Architecture (MLA) flex architecture on which Range Rover and Range Rover Sport are built, enabling us to offer powertrains that match the demands of markets around the world. During the year we are installing the latest energy efficient paint technology and filtration techniques to cut power and water use. JLR has also utilise fully automated spray robots which reduce paint waste versus hand painting methods.

B. Operating Results

All financial information discussed in this section is derived from our Audited Consolidated Financial Statements. FY24 profit and loss statement has been restated for TMFL merger with Tata Capital Ltd, which has been shown separately as profit/(loss) from discontinued business.

The following table sets forth selected items from our consolidated statements of income for the year indicated and shows these items as a percentage of total revenue:

	FY25	FY24	Difference
Particulars
	(%)	(%)	(Bps)
Revenue fromoperations	100.0%	100.0%	-
Expenditure:
Cost of material consumed (including change in stock)	61.8%	62.8%	(100)
Employee Cost	10.9%	9.7%	120
Product development/Engineering expenses	2.4%	2.5%	(10)
Other expenses (net)	19.4%	17.8%	160
Amount transferred to capital and other accounts	(7.1%)	(6.2%)	(90)
Total Expenditure	87.4%	86.6%	80
Profit before other income, Depreciation and amortization, Finance costs, Foreign exchange (gain)/loss, exceptional item and tax	12.6%	13.4%	(80)
Other Income	1.4%	1.3%	10
Amortiz Finance costs, Foreign exchange (gain)/ Profit beforeDepreciationand loss, exceptional item and tax	14.0%	14.7%	(70)
Depreciation and Amortization5.	3%	6.3%	(100)
Finance costs	1.2%	1.8%	(60)
Foreign exchange loss (net)	(0.2%)	0.0%	(20)
Share of profits/(loss) of equity accounted investees (net)	0.1%	0.2%	(10)
Profit before exceptional item and tax	7.8%	6.8%	100
Exceptional Item (gain)/loss (net)	0.1%	0.2%	(10)
oper Profit beforetaxfromcontinuing	7.7%	6.6%	110
Tax expense / (credit)	2.4%	(0.9%)	330
ations oper Profitaftertaxfromcontinuing	5.3%	7.5%	(220)
Profit	1.1%	(0.1%)	120
oper UnderlyingEBITDA-Continuing	13.1%	14.1%	(100)
UnderlyingEBIT-Continuingoperations	7.9%	8.0%	(10)

Underlying EBITDA is defined to include the product development expenses charged to P&L and realised FX and commodity hedges but excludes the revaluation of foreign currency debt, revaluation of foreign currency other assets and liabilities, MTM on FX and commodity hedges, other income (except government grant) as well as, exceptional items.

Underlying EBIT is defined as reported Underlying EBITDA plus profit from equity accounted investee less depreciation and amortization.

Overview

Profit before exceptional items and tax was 34,330 crores in FY25, as compared to 29,368 crores in FY24. Better mix, better management of costs, and softening of commodity prices, have resulted in profits for the year. The net profit (attributable to shareholders of our Company) was 27,830 crores in FY25, compared to a net profit of 31,399 crores. In FY24 deferred tax credit was recorded in Jaguar Land Rover creating deferred tax asset of 7,093 crores, in relation to deductible temporary differences, including unused tax losses, on the basis that it is probable that future taxable profits will be available against which those deductible temporary differences can be utilised. Similarly, Tata Motors on a standalone basis recorded deferred tax asset of 1,249 crores in FY24, on carry forward business losses, as it is probable, profits will be available against which these will be utilized in coming years. The net deferred tax credit was 8,961 crores for FY24. Some of these assets (business loss) has been utilized in FY25 reversal of deferred tax asset. difference of fair value of investments of Tata Capital Ltd.Profitbeforetaxfrom and the carrying value of net assets transferred as at April 1, 2024, of Tata Motors Finance Ltd. amounting to 4,975 crores. FY24 reflects net loss from Tata Motors Finance Ltd. operations.

Automotive operations

Automotive segment, accounted for 99.1%.

	FY25	FY24	Change (%)
Total Revenues ( in crores)	435,949	430,104	1.4%
Earnings before other income, interest & Tax	34,513	32,603	5.9%
Earnings before other income, interest & Tax (% of revenue)	7.9%	7.6%

Our automotiveoperationssegmentisfurtherdividedintofourreporting segments: Tata Commercial Vehicles, Tata Passenger Vehicles, Jaguar Land Rover and Vehicle financing.

Category	Total Revenues (Rs. crores)		Earnings before other income, inentives, finance cost, Foreign Exchange gain/(loss) (net) & Tax		Earnings before other income, inentives, finance cost, Foreign Exchange gain/(loss) (net) & Tax (% of revenue)
	FY25	FY24	FY25	FY24	FY25	FY24
CV	75,055	78,791	6,814	6,483	9.1%	8.2%
PV	48,445	52,353	472	1,016	1.0%	1.9%
JLR	314,220	302,825	27,764	25,382	8.8%	8.4%
Financing	51	141	(2)	80	(3.9%)	56.7%
Unallocable	591	593	(516)	(280)	(87.3%)	(47.2%)
Intra-Segment eliminations	(2,413)	(4,599)	(19)	(78)	0.8%	1.7%
Total	435,949	430,104	34,513	32,603	7.9%	7.6%

In FY25, Jaguar Land Rover contributed 72% of our total automotive revenue compared to 70% in FY24 (before intra-segment elimination) and the remaining 28% was contributed by Tata and other brand vehicles in FY25, compared to 30% in FY24. This is reflecting higher growth of Jaguar Land Rover as compared to Tata branded vehicles.

Other operations

Our other operations business segment mainly includes information technology services and insurance broking services. The following table sets forth selected data regarding our other operations for the periods indicated and the percentage change from period to period (before inter-segment eliminations).

Particulars	FY25	FY24	Change (%)
Total Revenues	6,019	5,875	2.5%
( in crores)
Earnings before other income, interest & Tax	939	968	(3.0%)
Earnings before other income, interest & Tax (% of revenue)	15.6%	16.5%

Geographical Breakdown

In FY25, volume and percentage of revenues outside India have overall remain flat from FY24 levels. The revenue of Jaguar Land Rover increased on account of better performance in North America markets for FY25. Jaguar Land Rover wholesale volumes increased in North America (increased 22%), decreased in other areas in Overseas (decreased 12%), Europe (decreased 11%), and China (decreased 10%) in FY25.

The following chart sets forth our revenue from key geographical markets:

The "EU" market is geographic Europe, excluding the United Kingdom and Russia. The "Others Rest of World" market is other regions not included above.

Tata Commercial Vehicles:

The revenue from Tata commercial vehicle was 75,055 crores in FY25, compared to 78,791 crores in FY24, a drop of 4.7% driven by lower volumes.

Our revenues from sales of vehicles and spare parts of commercial vehicles manufactured in India decreased by 5.5% to 67,215 crores in FY25 from 71,121 crores in FY24.

The breakup of sales of vehicles manufactured in India as follows: -

	FY25	FY24
Category	Net Revenue	Net Revenue	Change (%)
	Crs	Crs
HCV	32,109	35,631	(9.9%)
ILMCV	8,305	8,035	3.4%
CV Passenger	7,809	7,336	6.4%
SCV & Pickups	6,544	7,203	(9.1%)

Revenue attributable to Tata Daewoo Mobility, decreased by 10.8% to 5,394 crores in FY25 from 6,050 crores in FY24. Domestic sales were subdued due to prevailing economy challenges in Korean economy and political instability, whereas Export sales were impacted by intensified global geopolitical tensions, conflicts, trade disputes, and alliances shifting in FY25. Revenue from sale of spare parts decreased by 11.4% to 7,194 crores in FY25, as compared to 8,122 crores in FY24.

Tata Passenger Vehicles:

The revenue from Tata Passenger Vehicles was 48,445 crores in FY25, compared to 52,353 crores in FY24, a drop of 7.5%.

Our revenues from sales of vehicles and spare parts of Passenger Vehicles manufactured in India decreased by 4.3% to 48,144 crores in FY25 from 50,296 crores in FY24.

	FY25	FY24
Category	Net Revenue	Net Revenue	Change (%)
	Crs	Crs
Utility Vehicles	28,923	27,362	5.7%
Electric	7,518	8,784	(14.4%)
Passenger Car	5,044	7,549	(33.2%)

Revenue from sale of spare parts increased by 18.0% to 3,053 crores in FY25, as compared to 2,587 crores in FY24.

Vehicle financing:

Revenue from our Vehicle Financing operations dropped by 63.8% to 51 crores in FY25 from 141 crores in FY24. Tata Motors Finance Ltd. has been transferred to Tata Capital Ltd from appointed date of April 1, 2024.

Jaguar & Land Rover:

The revenue of our Jaguar Land Rover business increase by 3.8% to 314,220 crores in FY25 from 302,825 crores in FY24. This increase was after a favourable translation of 11,105 crores from GBP to Indian rupees in FY25. Excluding currency translation, the revenue of Jaguar Land Rover was flat at ?29 billion in FY25 vis-a-vis in FY24.

Others:

Revenue from other operations (before inter-segment eliminations) increase by 2.5% to 6,019 crores in FY25 compared to 5,875 crores in FY24. Revenue of Tata Technologies for FY25 was flat at 5,175 crores as compared to 5,126 in FY24.

Cost of material consumed:

Raw Materials, Components and Purchase of Products for Sale (including change in inventories of finished goods and work-in-progress) Material costs was 271,786 crores in FY25 compared to 272,755 crores in FY24. As a percentage of revenue material costs are 61.8% in FY25, compared to 62.8% in FY24.

Tata Commercial Vehicles:

Material costs for Tata Commercial Vehicles decreased by 8.5% to 51,241 crores in FY25 from 56,015 crores in FY24. The material costs as a percentage of total revenue decreased to 68.3% in FY25, compared to 71.1% in FY24, primarily due to product mix and softening of commodity prices.

Material costs decreased by 14.5% to 3,176 crores in FY25, compared to 3,715 crores in FY24 for Tata Daewoo Mobility. As a percentage of total revenue, material costs decreased to 58.9% in FY25, compared to 61.4% in FY24.

Tata Passenger Vehices:

Material costs for Tata Passenger Vehicles decreased by 9.2% to 38,612 crores in FY25 from 42,526 crores in FY24, mainly due to lower volumes. The material costs as a percentage of total revenue decreased to 79.7% in FY25, compared to 81.2% in FY24, on account of better product mix.

Jaguar & Land Rover:

At our Jaguar Land Rover operations, material costs in FY25 increased by 3.2% to 181,919 crores, from 176,325 crores in FY24. The increase was also due to an unfavourable currency translation from GBP to Indian rupees of 6,435 crores. Excluding currency translation, material costs attributable to our Jaguar Land Rover operations decreased to ?16,865 million in FY25 from ?16,958 million in FY24. Material costs at our Jaguar Land Rover operations as a percentage of revenue decreased to 57.9% in FY25 as compared to 58.3% in FY24 (in GBP terms). The mix, pricing improvement and reduction of supply and production constraints offset the impact of material cost pressures.

Employee Costs:

Our employee costs increased by 13.8% in FY25 to 47,767 crores from 41,990 crores in FY24, including the foreign currency translation impact from GBP to Indian rupees as discussed below.

Our permanent employee headcount increased by 2.5% as at March 31, 2025 to 86,259 employees from 84,166 employees as at March 31, 2024. The average temporary headcount has decreased to 35,228 employees in FY25 from 38,660 employees in FY24.

Segment	Permanent Headcounts
	FY 25	FY24
CV	23,203	22,981
PV	7,623	7,365
JLR	41,517	40,183
Others	12,218	12,092
Unallocable*	1,698	1,545
	86,259	84,166

*Unallocable includes corporate and shared services.

	Flexi Headcounts
Segment	FY 25	FY24
CV	16,532	17,424
PV	14,138	15,474
JLR	3,489	4,539
Others	762	877
Unallocable	307	346
	35,228	38,660

Tata Commercial Vehicles:

The employee costs for Tata Commercial Vehicles increased by 3.8% to 4,730 crores in FY25 from 4,555 crores in FY24, mainly due to yearly increments and various wage settlements during the year. However, the employee costs as a percentage of revenue increased to 6.3% in FY25 from 5.8% in FY24, due to increase in revenue.

Employee costs at Tata Motors Ltd, increased by 4.6% to 4,314 crores in FY25 from 4,123 crores in FY24, mainly due to annual increments and production Linked Incentive.

Employee costs at Tata Daewoo Mobility were increased to 894 crores in FY25, compared to 868 crores in FY24 primarily due annual increments given during FY25. The permanent headcounts increased by 1.0% as at March 31, 2025 to 23,203 employees from 22,981 employees as at March 31, 2024.

Tata Passenger Vehicles:

The employee costs for Tata Passenger Vehicles increased by 12.5% to 2,275 crores in FY25 from 2,023 crores in FY24, mainly due to yearly increments and various wage settlements during the year and additionally cost towards Sanand 2, which was operational from Q4 FY24. The employee costs as a percentage of revenue increased to 3.9% in FY25 from 3.6% in FY24. The permanent headcounts increased by 3.5% as at March 31, 2025 to 7,623 employees from 7,365 employees as at March 31, 2024.

Jaguar & Land Rover:

The employee costs at Jaguar Land Rover increased by 15.6% to 36,887 crores (?3,417 million) in FY25 from 31,895 crores (?3,064 million) in FY24. Increase is driven by rise in headcount and also annual increments. The headcount increased by 3.3% (FY25 41,517 vs FY24 40,183). The increase was also due to unfavourable foreign currency translation impact from GBP to revenue increased to 11.7% in FY25 from 10.5% in FY24 (in GBP terms).

Product development/Engineering expenses:

Product development/Engineering expenses represent research costs and costs pertaining to minor product enhancements, refreshes, and upgrades to existing vehicle models. These cost were at 2.4% and 2.5%, respectively of total revenues and were flat at 10,716 crores and 10,959 crores for FY25 and FY24,

Other Expenses:

Other expenses increased by 10.6% to 85,399 crores in FY25 from 77,198 crores in FY24. There was unfavourable foreign currency translation of GBP to Indian rupees of 2,522 crores.

The major components of expenses are as follows:

( in crores)

	FY25	FY24	Change	% of Revenue
				FY25	FY24
Processing charges	1,966	2,005	(1.9%)	0.4%	0.5%
Stores, spare parts and tools consumed	2,185	2,098	4.1%	0.5%	0.5%
Freight, transportation, port charges, etc.	9,083	8,889	2.2%	2.1%	2.0%
Power and fuel	2,443	2,189	11.6%	0.6%	0.5%
Warranty charges	16,478	13,586	21.3%	3.7%	3.1%
Publicity	10,697	9,220	16.0%	2.4%	2.1%
Information technology/computer expenses	6,471	5,627	15.0%	1.5%	1.3%
Provision and write off of sundry debtors, vehicle loans and advances (net)	63	163	(61.3%)	0.0%	0.0%
Engineering expense	8,191	7,716	6.2%	1.9%	1.8%
MTM (gain)/loss on commodity derivatives	(162)	1,531	(110.6%)	(0.0%)	0.4%
Works operation and other expenses	27,984	24,174	15.8%	6.4%	5.6%
Other Expenses	85,399	77,198	10.6%	19.4%	17.8%

1. Freight and transportation expenses increased by 2.2% to 9,083 crores in FY25. This is also due to unfavourable currency translation of 270 crores from GBP to INR. At Jaguar Land Rover freight and

FY24 to ?708 million in FY25. For India operations, expenses decreased from 1,357 crores in FY24 to 1,297 crores in FY25 contributed by Commercial Vehicles which were flat in FY25 at 1,094 crores and decrease in Passenger Vehicles expenses by 21.8% from 259 crores in FY24 to 203 crores in FY25 due to lower volumes. As a % to revenue, freight and transportation expenses was 2.1% in FY25, as compared to 2.0% in FY24.

2. Our works represented 6.4% and 5.6% of total revenue in FY25 and FY24, respectively. Other expenses mainly relate to volume-related expenses at Jaguar Land Rover and Tata Commercial and Passenger Vehicles. On absolute terms, the expenses increased to 27,984 crores in FY25 from 24,174 crores in FY24, mainly on account of unfavourable foreign currency translation impact from GBP to Indian rupees of 1,024 crores.

3. Publicity expenses represented at 2.4% and 2.1% of our total revenues in FY25 as well as FY24, respectively. The publicity expenses at Jaguar Land Rover increased to ?894 million (3.1% of the revenue) in FY25, compared to ?777 million (2.7% 711 million of revenue) in FY24. Publicity expenses for our India operation was 1,124 crores in FY25 as compared to 1,180 crores in FY24.

4. Warranty and product liability expenses represented 3.7% and 3.1% of our total revenues in FY25 and FY24, respectively. The warranty expenses at Jaguar Land Rover increased to ?1,272 million (4.4% of the revenue) in FY25, compared to ?1,059 million (3.6% of revenue) in FY24, for Tata Motors Indian operations, Commercial Vehicles and other represented at 3.1% and 2.0% in FY25 and FY24, Passenger Vehicles increased from 0.8% in FY25 to 0.5% in FY24. Provisions are recognised for the costs of repairing manufacturing defects, recall campaigns, customer goodwill and the other obligations under the warranty. Assumptions are made on the type and extent of future warranty claims based on experience of the frequency and extent of vehicle faults and defects historically. The estimates also include assumptions on the amounts of potential repair costs per vehicle and the effects of possible time or mileage limits and are regularly adjusted to reflect new information.

5. Engineering expenses increased by 6.2% to 8,191 crores in FY25, compared to 7,716 crores in FY24. These expenses represent 1.9% and 1.8% of our total revenues in FY25 and FY24, respectively and are attributable mainly to increased expenditure at Jaguar Land Rover.

Expenditure capitalized:

This represents employee costs, stores and other manufacturing supplies and other work expenses incurred mainly toward product development projects. Considering the nature of our industry, we continually invest in the development of new products to address safety, emission, and other regulatory standards. The expenditure capitalized increased by 16.2% to 31,105 crores in FY25 from 26,758 crores in FY24. The increase is also due to favourable foreign currency translation impact from GBP to Indian rupees of 1,016 crores pertaining to Jaguar Land Rover.

Total amount incurred by the Company on product development was 35,171 crores in FY25 as compared to 29,579 crores FY24, of which 69.5% was capitalised in FY25 as compared to 63.0% FY24.

Other income:

There was a net gain of 6,244 crores in FY25, compared to 5,692 crores in FY24, representing increase of 9.7% Interest income was 2,473 crores in FY25, compared to 2,488 crores in FY24, Government incentive increased to 3,458 crores in FY25, compared to 2,971 crores in FY24. In FY25, we recognised PLI incentive of 527 crores on receipt of approval and money for FY24 and also accrued for FY25 basis TCA approval.

Depreciation and Amortization:

Our depreciation and amortization expenses decreased by 14.6% in FY25 as compared to FY24, the breakdown of which is as follows:

		( in crores)
Particulars	FY25	FY24	Change
Depreciation	11,203	13,048	(14.2%)
Amortization	10,630	12,922	(17.7%)
Assets (RTU)	1,423	1,269	12.1%
Total	23,256	27,239	(14.6%)

Depreciation & Amortization expenses decreased 23,256 crores in FY25, compared to 27,239 crores in

FY24, majorly decrease of 4,580 represents towards Jaguar Land Rover at 18,067 crores in FY25 as compared to 22,647 in FY24 due to cessation of production at Castle Bromwich effective from Q1 FY25, cessation of productions at Graz effective from Q3 FY25 and ICE end of life extensions.

Finance Cost (interest expenses):

Our interest expense (net of interest capitalized) decreased by 33.1% to 5,083 crores in FY25 from 7,594 crores in FY24. As a percentage of total revenues, interest expense represented 1.2% and 1.7% in FY25 and FY24, respectively. The interest expense (net) for Jaguar Land Rover was ?287 million ( 3,106 crores) in FY25, compared to ?469 million ( 4,892 crores) in FY24. The decrease is mainly on account of debt and bond repayment and higher interest capitalisation at Jaguar Land Rover. For Tata Commercial Vehicles and Tata Passenger Vehicles, interest expense decreased to 1,810 crores in FY25 from 2,632 crores in FY24, reflecting decrease in borrowings.

Foreign exchange (gain)/loss (net):

We had a net foreign exchange gain of 922 crores in FY25, compared to loss of 15 crores in FY24.

• Jaguar Land Rover recorded an exchange gain of 981 crores in FY25, compared to 190 crores in FY24 on account of foreign exchange and fair value adjustments.

For our India operations, we incurred a net exchange loss of 101 crores in FY25, compared to 258 crores in FY24, mainly attributable to foreign currency denominated borrowings.

Exceptional Item (gain)/loss (net):

		( in crores)
Particulars	FY25	FY24
Employee separation cost	275	87
Impairment of property, plant and equipment and provision for intangible assets under development and subsidiary company.	31	102
Provision for onerous contract	30	-
Provision for employee pension scheme	165	762
Others	49	(12)
Total of Leased	550	939

FY25

Tata Motors Limited (the "Company") in October 2019 had by way of an application, addressed to the Employee

Provident Fund Organization ("EPFO"), offered to surrender its exempted Pension fund. Subsequently, the Company incurred losses for three consecutive years (during FY 2019-20, 2020-21 & 2021-22), thereby calling for an automatic cancellation/ withdrawal of pension fund exemption.

On November 4, 2022, the Honble Supreme Court ruled that those who were members of a statutory pension fund as on September 1, 2014, can exercise a joint option with their employer to contribute to their Pension fund beyond the statutory limit and be eligible to draw a higher pension calculated based on last 5 years average salary. The Company accepted and approved the applications filed by its employees for joint option to contribute on higher salary on the EPFOs portal. As per the actuarial valuation, an additional provision of 165 crores have been made for pension on higher salary during the year ended March 31, 2025. EPFO, however, redirected a few of such Joint Applications to the Companys Pension Trust. Considering this, along with the fact that there was no positive movement towards the conclusion of the surrender process of the pension fund, the Company filed a Writ Petition with Honble Delhi High Court ("Court") for seeking directions to EPFO to immediately start administering TMLs Pension Fund. The trade unions have also filed another Writ Petition for expediting the transfer of pension fund corpus and accepting the Joint Applications of the employees. EPFO in December 2024, sent a recommendation to the Government of India for cancellation of the Companys pension exemption, subject to fulfilment of certain conditions. The parties had series of meetings channelize the migration of members data to EPFOs unified portal, prominently the joint meetings in April 2025, of which the duly signed minutes were filed in the Court on May 1, 2025. It has been agreed in the said minutes that EPFO will provide a facility on the Unified Portal for the Company to migrate the members data on EPFOs portal. The Company will start contribution in statutory pension fund w.e.f. wage month of July 2025. Pension Trust will transfer the liability towards normal pension valuation carried by EPFO. The Court took the above minutes on its records and fixed the matter on July 23, 2025 for implementation of same as per timelines agreed in the minutes.

Tax expenses / (credit):

Our income tax expense from continuing operations is 10,502 crores in FY25 as compared to credit of 4,024 crores in FY24, resulting in consolidated effective tax rates of positive 31.1% in FY25, compared to negative 14.2% for FY24. Current tax expense for FY25 is 5,023 crores as compared to 4,937 crores in FY24, whereas there is deferred tax expense of 5,479 crores in FY25 as compared to credit of 8,961 crores in FY24.

As compared to FY24, income tax expense is due to the following reasons:

During FY25, Tata Motors Ltd has utilised deferred tax asset on business loss of 1,211 crores and on unabsorbed depreciation 763 crores, resulting in deferred tax expenses of 1,827 crores. In FY24 Tata Motors, recognised deferred tax asset on business loss of 1,249 crores and utilised 1,029 crores against the profit on sale of investments in FY24 resulting in net deferred tax credit of 157 crores.

During FY25, Jaguar Land Rover recognized deferred tax expense of 2,855 crores as compared to 7,094 crores deferred tax credit in FY24, on previously unrecognized unused business losses.

There is tax charge on undistributed earnings of joint venture, joint operation, associates and subsidiaries amounting to 1,392 crores in FY25 as compared to 1,043 crores in FY24, due to increased profitability.

Share of profit/(loss) of equity-accounted investees:

In FY25, our share of equity-accounted investees reflected a profit of 287 crores, compared to profit of 700 crores in FY24. Our share of profit (including other adjustments) in the China Joint Venture was loss in FY25 was 28 crores, compared to profits of 253 crores in FY24. Further in FY24 Tata Autocomp Systems Ltd. had accounted for one time gain towards sale of land and business, leading to higher profits.

Non-controlling interests in consolidated subsidiaries, net of tax:

The share of non-controlling interests in consolidated subsidiaries was decreased to 319 crores in FY25 from 408 crores in FY24. The non-controlling interest has reduced, due to merger of TMFL with TCL, interest on perpetual debt. This has been partially offset by increase in non-controlling interest of Tata Technologies Ltd, due to sale of stake by TML during FY24.

Profit after tax:

Our consolidated net profit in FY25, excluding shares of non-controlling interests, is 27,830 crores, as compared to 31,399 crores in FY24. This was mainly the result of the following factors:

Earnings before other income (excluding Incentives), finance cost, foreign exchange gain/ (loss) (net), exceptional items and tax for Jaguar

Land Rover is profit of 26,830 crores in FY25, compared to 25,799 crores in FY24.

Earnings before other income (excluding Incentives), finance cost, foreign exchange gain/ (loss) (net), exceptional items and tax for Tata Commercial Vehicles amounted to 6,794 crores in FY25, compared to 6,479 crores in FY24.

Earnings before other income (excluding Incentives), finance cost, foreign exchange gain/ (loss) (net), exceptional items and tax for Tata Passenger Vehicles amounted to 458 crores in FY25, compared to 1,029 crores in FY24.

C. Balance Sheet

Below is a discussion of major items and variations in our consolidated balance sheet as at March 31, 2025, and March 31, 2024, included elsewhere in this annual report.

						( in crores)
	As at March 31,		Change	Translation of JLR	Change Due to TMFL	Net Change
	2025	2024	25 Vs 24	25 Vs 24	Demerger	25 Vs 24
ASSETS
(a) Property, plant and equipment and intangible assets	180,608	156,123	24,485	7,476	119	16,890
(b) Goodwill	895	860	35	-	-	35
(c) Financial assets (Inc. investment in equity accounted investees)	121,078	133,740	(12,662)	4,073	35,308	(52,043)
(d) Deferred tax assets (net)	7,176	13,099	(5,923)	452	12	(6,387)
(e) Tax assets (net) - (Current/Non-Current)	2,456	2,231	225	13	-	212
(f) Other assets	18,646	16,149	2,497	689	2,129	(321)
(g) Inventories	47,269	47,788	(519)	2,055	-	(2,574)
(h) Assets classified as held-for-sale	514	674	(160)	26	59	(245)
TOTAL ASSETS	378,642	370,664	7,978	14,784	37,627	(44,433)
EQUITY AND LIABILITIES
EQUITY	122,754	93,094	29,660	5,067	5,645	18,948
LIABILITIES				-
liabilities: (a) Financial	186,591	220,848	(34,257)	6,962	842	(42,061)
(b) Provisions	36,766	28,828	7,938	1,576	91	6,271
(c) Deferredtaxliabilities	1,669	1,143	526	57	-	469
(d) Other liabilities	28,716	25,224	3,492	1,025	31,049	(28,582)
t) (ne (e) Currenttaxliabilities	2,146	1,527	619	97	-	522
TOTAL LIABILITIES	255,888	277,570	(21,682)	9,717	31,982	(63,381)
TOTAL EQUITY AND LIABILITIES	378,642	370,664	7,978	14,784	37,627	(44,433)

The increase by 2.2% in assets as at March 31, 2025, considers favourable foreign currency translation from GBP into Indian rupees as described below.

Property, plants and equipment: PPE decreased marginally from 73,125 crores as at March 31, 2024, to 72,536 crores as at March 31, 2025. This is post favourable foreign currency translation of 2,557 crores from GBP to Indian rupees. After adjusting for the foreign currency translation impact, decrease of 589 crores is mainly due to additions offset depreciation during the year.

Goodwill: Goodwill as at March 31, 2025, was 895 crores, compared to 860 crores as at March 31, 2024. The increase was attributable to a favourable translation impact pertaining to software consultancy and the services of our subsidiary, Tata Technologies Limited.

Intangible Assets: Intangible assets increased by 28.1% from 64,002 crores as at March 31, 2024, to 81,972 crores as at March 31, 2025. This increase is mainly due to higher capitalization of product development costs. This increase is also due to favourable foreign currency translation of 1,835 crores from GBP to Indian rupees. As at March 31, 2025, there were product development projects in progress amounting to 24,761 crores compared to 9,055 crores as at March 31, 2024. Inventories: As at March 31, 2025, inventories were at 47,269 crores, compared to 47,788 crores as at March 31, 2024, a decrease of 1.1%. The decrease in finished goods inventory by 426 crores from 36,622 crores as at March 31, 2024, to

36,196 crores as at March 31, 2025. This decrease was post favourable currency translation of 1,688 crores from GBP to Indian rupees. In terms of number of days to sales, finished goods represented 49 inventory days in sales in FY25, compared to 44 inventory days in FY24.

Other assets: Our other assets (current and non-current) increased by 15.5% to 18,646 crores as at March 31, 2025, from 16,150 crores as at March 31, 2024. This increase is majorly on account of employee benefits (pension at JLR) by 343 crores, Research and development expenditure credit grant 705 crores, advance to suppliers by 541 crores, PLI accrual of 385 crores, and contract assets 443. There was an increase attributable to a favourable translation impact of 343 crores.

DTA & DTL: A deferred tax asset (net) of 5,583 crores was recorded in our income statement and a deferred tax liability (net) of 30 crores in other comprehensive income. The deferred tax asset of 7,176 crores was recorded as at March 31, 2025, compared to 13,099 crores as at March 31, 2024. We utilised 1,024 crores (net) on deferred tax asset on losses due to profits in FY25.

Provisions: Provisions (current and non-current) increased by 27.5% to 36,766 crores as at March 31, 2025 from 28,828 crores as at March 31, 2024. Provisions for warranties increased by 31.0% to 28,080 crores as at March 31, 2025, compared to 21,439 crores as at March 31, 2024 mainly at Jaguar Land Rover increased from GBP 1,865 million to GBP 2,262 million as at March 31, 2025, at Tata Motors Ltd. increased from 1,315 to 2,291 crores as at March 31, 2025.

Trade Payable (including Acceptances): There were 97,368 crores as at March 31, 2025, compared to 93,978 crores as at March 31, 2024, an increase of 3.6%, reflecting increase in operations at Jaguar Rover and unfavourable foreign currency translation of 2,279 crores from GBP to Indian rupees.

Other Liabilities: Increased by 13.8% to 28,716 crores as at March 31, 2025, compared to 25,224 crores as at March 31, 2024. There has been increase of 1,735 crores as at March 31, 2025 on account of contract liabilities, an increase of 11.5% as compared to FY24. Further increase on account of Government grant by 36.7% and an unfavourable foreign currency translation of 1,025 croresfromGBPtoIndianrupees. positive at 22,348 crores compared to Financial Liabilities: Financial liabilities (current and non-current) were 1,86,591 crores as at March 31, 2025, compared to 2,20,847 crores as at March 31, 2024 (net of favourable currency translation impact of 6,962 crores), comprises of liabilities towards borrowings, lease liability and Trade payables. Borrowings has reduced to 62,499 crores as at March 31, 2025 from 98,501 crores as at March 31, 2024 due to repayments.

D. Cash Flow

The following table sets forth selected items from consolidated cash flow statement:

			( in crores)
Particulars	FY25	FY24	Change
Cash from operating	63,102	67,915	(4,813)	activities
Profit/Loss for the year	28,149	31,807
Adjustments for cash from operations	30,788	33,299
Changes in working capital	8,156	7,325
Direct taxes paid	(3,991)	(4,516)
Cash used in investing	(47,594)	(22,828)	(24,765)
Payment for Assets	(37,068)	(31,183)
Net investments, short term deposit, margin money and loans given	(13,121)	5,766
Dividend and interest received	2,595	2,589
Net Cash used in financing activities	(18,786)	(37,006)	18,220
Proceeds/(buy back) from issue of share to minority shareholders	-	3,812
Dividend Paid (including paid to minority shareholders	(2,303)	(1,059)
Interest paid	(5,814)	(9,332)
Proceeds from issue of shares and share application pending allotment	35	82
Net Borrowings (net of issue expenses)	(10,704)	(30,509)
Net increase / (decrease) in cash and cash equivalent	(3,278)	8,081	(11,358)
Free Cash Flow (FCF) (Auto)	22,348	26,924

*FCF means cash flow from operating activities less payment for property, plant and equipment and intangible assets, add proceeds from sale of property, plant and equipment, excluding M&A linked asset purchase less interest paid, add interest received, add dividend from equity accounted investees of core auto entities and less Investment in Equity Accounted investees of core auto entities.

Auto Free Cash Flow of core auto entities and less cash flow of TMF Group i.e. financing business on consolidated basis was 26,924 crores in FY24. Cash and cash equivalents decreased by 5,666 crores as at March 31, 2025 to 34,349 crores from 40,015 crores as at March 31, 2024. The movement is on account of net decrease in cash and cash equivalent by 3,278 crores. Reduction in cash due to merger of TMFL with

TCL of 2,999 crores, offset by foreign exchange gain 909 crores resulted from the changes to our cash flows in FY25 when compared to FY24 as described below. Net cash provided by operating activities totalled 63,102 crores in FY25, a decrease of 4,813 crores, compared to 67,915 crores in FY24. The net profit for the FY25 is 28,149 crores, compared to a profit of 31,807 crores in FY24. The cash flows from operating activities before changes in operating assets and liabilities is of 58,937 crores in FY25, compared to 65,106 crores in FY24. The changes in operating assets and liabilities resulted in a net inflow of 8,156 crores in FY25, compared to 7,327 crores in FY24.

In FY25, Cash inflow in vehicle finance receivables was Nil crores compared to a net outflow of 725 crores in FY24, due to merger of Tata Motors Finance Ltd. with Tata capital Ltd. For Tata Commercial Vehicles and Tata Passenger Vehicles there was an inflow of 599 crores in FY25 on account of changes in operating assets and liabilities, compared to 845 crores in FY24. For Jaguar Land Rover brand vehicles, there was a net inflow of cash on account of changes in operating assets and liabilities accounting to 7,546 crores in FY25, compared to 6,619 crores in FY24.

Income tax paid has decreased to 3,991 crores in FY25, compared to 4,516 crores in FY24, which was primarily attributable to tax payments by Jaguar Land Rovers foreign subsidiaries in their respective tax jurisdictions. Net cash used in investing activities totalled of 47,594 crores in FY25, compared to 22,828 crores for FY24, an increase of 24,766 crores.

The following table sets forth a summary of our cash flow on property, plants and equipment and intangible assets for the periods indicated.

Particulars	FY25	FY24
Tata Commercial Vehicles	2,130	2,101
Tata Passenger Vehicles	4,264	4,237
Jaguar Land Rover	30,584	24,592
Others	90	253
Total	37,068	31,183

Jaguar Land Rover had positive free cash flow of ?1,478 million in FY25, after total investment spending of ?3.8 billion. In FY25, payments for capital expenditures at Jaguar Land Rover increased by 24.4% to 30,584 crores from 24,592 crores in FY24. Investment spending in

FY25 was ?3.8 billion (13.1% of revenue), higher than ?3.3 billion (11.3% of revenue) in the prior year. Of the ?3.8 billion investment spending, ?869 million was expensed through profit and loss statement and the remaining ?1.8 billion was capitalised.

In FY25, payments for capital expenditures at Tata Commercial Vehicles and Tata Passenger Vehicles increased to 6,586 crores from 6,297 crores in FY24. These capital expenditures are related to new products under development.

Our net investment in short-term deposit margin moneys and loans resulted in an outflow of 13,121 crores in FY25, compared to an inflow 5,766 crores in FY24. This is mainly due to investment in mutual fund in FY25, compared to FY24.

Net cash outflow from financing activities totalled 18,786 crores in FY25, compared to 37,006 crores in FY24. Net repayment of borrowings (net of issue expenses) done during FY25 of 10,704 crores, compared to 30,509 crores during FY24. For Tata Commercial Vehicles and Tata Passenger Vehicles excluding vehicle financing, the short-term debt (net) decreased by 5,279 crores, whereas long-term debt (net) increased by 660 crores, due to repayments. There was a decrease in debt (short-term and long-term) of 402 crores in FY25 at Vehicle Financing, compared to 3,895 crores in FY24 on account of repayments and transfer of net assets to Tata Capital Limited.

For Jaguar Land Rover, short term debt increased to ?1,400 million in FY25 (?1,256 million in FY24). However, Long-term debt (excluding lease liabilities) decreased to ?2,285 million in FY25 (?2,936 million in FY24), including repayment of 500 million bond, ?73 million five-year amortising loan facility from UK Export and ?250 of the UKEF backed loan which amortized over the course of the year. As at March 31, 2025, the Group has a fully undrawn revolving credit facility of ?1,660 million (2024: ?1,520 million). In January 2025, signed a new term loan at a value of $500 million, which increased to $650 million in March 2025 due to a $150 million accordion feature. Lease obligations payments totalled ?86 million in FY25 compared to ?74 million in FY24.

Interest paid in FY25 was 5,814 crores, compared to 9,332 crores in FY24. For Jaguar Land Rover, interest paid was 4,000 crores in FY25, compared to 4,565 crores in FY24. For Tata Commercial Vehicles and Tata Passenger Vehicles, interest paid was 1,413 crores in FY25, compared to 2,098 crores in FY24.

E. KEY FINANCIAL RATIOS

The details of significant changes (25% or more) in the key financial ratios in FY25 compared to FY24 is as follows:

Particulars	Year ended Mar 31, 2025	Year ended Mar 31, 2024	Change %
Debt Equity Ratio (number of times)	0.54	1.16	(53.4%)
Debt Service Coverage Ratio (number of times)	2.21	1.76	25.6%
Interest Service Coverage Ratio (number of times)	6.54	5.24	24.8%
Current ratio (number of times)	0.96	0.97	(1.0%)
times) Longtermdebttoworkingcapital(numberof	5.33	3.56	49.7%
Debtors turnover (in times)	29.12	26.55	9.7%
Inventory turnover(intimes)	5.72	6.16	(7.1%)
Operating margin (%)	13.28	14.01	(5.2%)
Net profit margin (%)	6.40	7.33	(12.7%)
Return on capital employed (%)	18.7	6.5	187.7

F. Liquidity and Capital Resources We finance our capital expenditures and research and development investments through cash generated from operations, cash and cash equivalents, and debt and equity funding. We also raise funds through the sale of investments, including divestments in stakes of subsidiaries on a selective basis.

The key element of the financing strategy is maintaining a strong financial position that allows us to fund our capital expenditures and research and development investments efficiently even if earnings are subject to short-term fluctuations. Our policies for liquidity and capital resources are appropriate for automotive operations and are set with business specific sensitivity analysis and by benchmarking our competitors. These are reviewed periodically by the Board.

(i) Principal Sources of Funding Liquidity

Our funding requirements are met through a mix of equity, convertible or non-convertible debt securities and other long and short-term borrowings along with working capital limits from banks and financial institutions. We raise funds from debt markets through commercial paper programs, convertible and non-convertible debentures and other debt instruments. We regularly monitor funding options available in the debt and equity capital markets with a view to maintain financial flexibility.

The following table sets forth our short- and long-term debt position:

	As of March 31,2025	As of March 31,2024
Short-term debt (excluding current portion of long-term debt)	5,687	5,735
Current portion of long-term debt	16,595	30,617
Long-term debt net of current portion	40,217	62,149
Total Debt	62,499	98,501

The following graph sets forth a summary of the maturity profile for our outstanding long-term debt obligations (including current maturities of long-term borrowings, including interest) as of March 31, 2025.

Payment Due by Period	in crores
Within one year	20,770
After one year and upto two years	12,081
After two year and upto five years	30,156
After five year and upto ten years	3,191
Total	66,198

The following table sets forth our total liquid assets, namely cash and cash equivalents, short-term deposits and investments in mutual funds and money market funds (under other Investment Current):

		( in crores)
	As of March 31, 2025	As of March 31, 2024
Total cash and cash equivalent	34,349	40,015
Total short-term deposits	6,072	5,202
Total mutual fund investments	27,199	13,987
Total liquid assets	67,620	59,204

The auto cash (Including Lease liabilities) as at March 31, 2025 of 1,018 crores as compared to net auto debt 16,022 crores as at March 31, 2024.

We will continue to invest for domestic business to cater to increasing demand, launch new products and technologies and explore new business avenues. Jaguar Land Rover has cumulative investment plans of ?18 billion until FY28 in its industrial footprint, vehicle programmes, autonomous, AI and digital technologies and people skills, as a part of its Reimagine strategy. The investment plans of Jaguar Land Rover will be continued to be funded from internal accruals. Tata Motors Ltd (TML) and Tata Motors Passenger Vehicles Ltd (TMPVL) expects to meet the investments primarily out of their own operating cash flows. Capital investments in Passenger Electric Mobility Ltd (TPEML) are well funded in the near term from the funds received from TPG

Rise Climate in line with the strategy roadmap. Any additional funding requirements if needed, can be met through loans, incentives and other means from time to time. Despite significantly higher investments and multiple headwinds, we are expecting our business to be self-sustaining and we aim sustain net cash.

Long-term funding

In FY24 and FY25, the funding requirements were largely met through internal accruals and details of major funding and repayments during FY24 and FY25 are provided below.

During FY24:

1. TML made a tender offer to External Commercial Borrowing Bond Holders for purchase for cash the outstanding US$250 million 5.75% senior notes. US$111.94 million in aggregate principal amount of the ECB Bonds were validly tendered pursuant to the Offer and were prepaid.

2. TML completed the sale of 9.9% stake in its subsidiary Tata Technologies Ltd (TTL) resulting in cash inflow of 1,614 crores. Further, pursuant to the Initial Public Offer of TTL, TML sold 46,275,000 Equity Shares in TTL resulting in a cash inflow of 2,199 crores.

3. TML fully prepaid ECB loan of US$237.47 million, which was due for repayment in June 2025.

4. JLR repaid 650 million bond, \5 billion China syndicated loan, in addition to ?250 million of the loans guaranteed by UKEF which amortise throughout the year. Also, a tender offer was made for the 500 million 6.875% senior notes due November 2026, the $650 million 5.875% senior notes due January 2028 and the $500 million 5.500% senior notes due July 2029. A total of c. ?330 million equivalent of notes were tendered under the offer.

5. TML Holdings Pte Ltd signed a Facility Agreement of ?275 million, of which ?215 million is a syndicated loan facility, with a 12-month bullet maturity. The balance ?60 million is a Committed Revolving Credit Facility (RCF) for 24 months to support liquidity. As at March 31, 2025, the Facility remains unutilized.

6. Bank borrowings continued to be the major source for long-term funding and TMFHL along with its subsidiaries (TMF Group) raised 8,302 crores (including External Commercial Borrowings).

7. Our subsidiaries TML Smart City Mobility Solutions Ltd, TML CV Mobility Solutions Ltd and TML Smart City Mobility Solutions J&K Pvt Ltd, raised funds for funding e-buses towards GCC contracts. A cumulative amount of 837 crores was raised for a term of 8-10 years through banks.

During FY25:

1. TML repaid NCD of 600 crores on due dates. 5.75% Senior Notes USD 138 million (issued in October 2014) matured and were fully repaid. Further unsecured bank term Loan of 100 crores was repaid during the year.

2. TML raised 2,000 crores by issuing Non-Convertible Debentures on a private placement basis. The proceeds of the issue will be utilised for refinancing of long term debt and for general business purposes.

3. JLR repaid 500 million bond, $798 million syndicate loan, in addition to ?198 million of the loans guaranteed by UKEF which amortise throughout the year, with the first tranche fully repaid.

4. JLR refinanced the Revolving Credit Facility for ?1.66 billion, with ?0.62 billion maturing in October 2027 and ?1.04 billion maturing in October 2029. The entire facility remained unutilized as at March 31, 2025.

5. JLR prepaid two loans for \1.5 billion each with local banks in China maturing in December 2025. In January 2025, JLR signed a new term loan at a value of $500 million, which increased to $650 million in March 2025 due to a $150 million accordion.

6. Jaguar Land Rover Ltd had sold receivables of $562 million equivalent under the approximately $900 million committed of invoice discounting facility, which was renewed in September 2024. Under the terms of this facility receivables are accounted as sold (through trade receivables in working capital) and therefore not accounted as debt under IFRS.

7. Our subsidiaries TML Smart City Mobility Solutions Ltd and TML Smart City Mobility Solutions (J&K) Pvt Ltd raised funds for funding e-buses towards GCC contracts. A cumulative amount of 204 crores was raised in FY25 for a term of 8-10 years through banks. An amount of 82 crores (including 40 crores in TML CV Mobility Solutions Limited) was repaid in FY25. The banks have also sanctioned fund based working capital limits of 25 crores in FY25.

Short-term funding

As at March 31, 2025, the secured fund based working capital limits of TML, TMPVL and TPEML were 4,000 crores, 1,800 crores and 1,200 crores, respectively of which 2,920 crores, 1,260 crores and 1,200 crores remained unutilized. Unsecured fund based working capital limits of TML, TMPVL and TPEML were at 10,000 crores, 100 crores and 200 crores which remained fully unutilized. The non-fund based limits of TML, TMPVL and TPEML were 4,500 crores, 1,000 crores and 600 crores, respectively. Certain limits outlined above can be used interchangeably between fund based and non-fund based. Our subsidiaries have sufficient fund based and non-fund based arrangements to meet their requirements. The working capital limit provided by consortium of banks are secured by hypothecation of entire current assets including, stocks of inventory whether lying in the Borrowers premises or in transit or at any other place, receivables, book debts including the proceeds thereof on realisation and all other movables which are in the nature of current assets of the Borrower, both present and future. The working capital limits are renewed annually.

Loan Covenants

Some of our financing agreements and debt arrangements set limits on and/or require prior lender consent for, among other things, undertaking new projects, issuing new securities, changes in management, mergers, sales of undertakings and investments in subsidiaries. Lender approval demerger and TMF. In addition, certain negative covenants may limit our ability to borrow additional funds or to incur additional liens, and/or provide for increased costs in case of breach. Certain financing arrangements also include financial covenants to maintain certain net- worth, earnings, liability, debt related ratios and maintenance of debt service reserve accounts.

We monitor compliance with our financial covenants on an ongoing basis. We also review our refinancing strategy and continue to plan for deployment of long-term funds to address any potential non-compliance and seek any waivers, if required. For FY25, the Company is in compliance with the covenants.

Certain debt issued by Jaguar Land Rover is subject to customary covenants and events of default, which include, among other things, minimum liquidity requirement in the case of the UKEF facilities and the GBP 1.66 billion revolving credit facility. UKEF facilities also contains restrictions or limitations on the amount of cash that may be transferred outside of the Jaguar Land Rover Group in the form of dividends, loans or investments to TML and its subsidiaries. These are referred to as "restricted payments" in the relevant Jaguar Land Rover financing documentation. The amount of cash which may be transferred as restricted payments from the Jaguar Land Rover Group to the Company and its subsidiaries is limited to 25% of its Profit After Tax ("PAT").

To effect the upcoming demerger, we require approval from various lenders and financial institutions. All approvals required so far have been timely received.

As at March 31, 2025, the estimated amount that is available for dividend payments, other distributions and restricted payments was approximately ?400 million.

INTERNAL CONTROL SYSTEMS AND THEIR

ADEQUACY

We have an adequate system of internal controls in place. We have documented policies and procedures covering all financial and operating functions. These controls have been designed to provide a reasonable assurance regarding maintaining of proper accounting controls for ensuring reliability of financial reporting, monitoring of operations, and protecting assets from unauthorized use or losses, compliances with regulations. We have continued our efforts to align all our processes and controls with global best practices.

Some significant features of the internal control of systems are:

The Audit Committee of the Board of Directors, comprising entirely of independent directors and functional since August 1988, regularly reviews the audit plans, significant audit findings, adequacy internal controls, compliance with accounting standards as well as reasons for changes in accounting policies and practices, if any;

Documentation of major business processes and testing thereof including financial closing, computer controls and entity level controls, as part of compliance program as required under the Companies Act, 2013;

Robust Enterprise Resource Planning, supplier relations management and customer relations management connect our different locations, dealers and vendors for efficient and seamless information exchange. We also maintain a comprehensive information security policy and undertakes continuous upgrades to our IT systems;

Detailed business plans for each segment, investment strategies, year-on-year reviews, annual financial and operating plans and monthly monitoring are part of the established practices for all operating and service functions;

A well-established, independent, multi-disciplinary Internal Audit team operates in line with governance best practices. It reviews and reports to management and the Audit Committee about compliance with internal controls and the efficiency and effectiveness of operations as well as the key process risks. The scope and authority of the Internal Audit division is derived from the Internal Audit Charter, duly approved by the Audit Committee; and Anti-fraud programs including whistle blower mechanisms are operative across the Company;

Adopted three Line of Defence model. The 1^st line of defence, ensures implementation of desired Internal Controls and Risk Management practices. The 2^nd line of defence assist in determination of Risk Capacity, Appetite, Process and Procedures and facilitate oversight, monitoring and reporting on Risk and Controls. The 3rd line of defence is the internal audit, which provides Independent and Objective assurance to the Audit Committee on overall effectiveness of Risk Management, Internal Control and Compliance activities and recommendations on improvements required;

An ongoing program, for the reinforcement of the Tata Code of Conduct is prevalent across the organization. reporting, ethical TheCodecoversintegrityoffinancial conduct,regulatorycompliance,conflicts of interests review and reporting of concerns.

The Board takes responsibility for the overall process of risk management throughout the organization. Through an Enterprise Risk Management program, our business units and corporate functions address risks through an institutionalized approach aligned to our objectives. This is facilitated by internal audit. The Business risk is managed through cross functional involvement and communication across businesses. The results of the risk assessment are presented to the senior management. The Risk Management Committee reviews business risk areas covering operational, financial, strategic and regulatory risks.

There have been no changes in our internal control over financial reporting that occurred during the period covered by this annual report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

During FY25, we assessed the effectiveness of the Internal Control over Financial Reporting and has determined that our Internal Control over Financial Reporting as at March 31, 2025, is effective.

HUMAN RESOURCES / INDUSTRIAL RELATIONS

At Tata Motors, people remain at the core of everything we do. Their passion, capabilities, and commitment are the foundation of our success and our biggest competitive advantage. With a steadfast focus on being the employer of choice in the Indian automotive industry, we are fostering an empowering culture that enables every employee to unlock their full potential.

As a learning organization, we are investing in hyper-personalised learning pathways, offering diverse experiences and continuous development opportunities across functions and career stages. From frontline teams to future leaders, we are nurturing a future-fit, future-ready workforce agile, skilled, and aligned to the evolving needs of the industry. We are also reimagining the employee experience by driving digital transformation across the employee lifecycle, simplifying processes, and enhancing access through intuitive, tech-enabled platforms.

Through purposeful inclusion, we are committed to building a diverse, equitable, and collaborative workplace where every voice matters and every individual thrives. As we move forward, the trails of agility, digital mind-set, customer centricity, and collaboration continue to define the way we work fuelling excellence and shaping the future of mobility together.

Building a Strong Workforce

We employed approximately 86,259 and 84,166 permanent employees as of March 31, 2025 and 2024, respectively.

The average number of flexible (temporary, trainee and contractual) employees for FY25 was approximately 35,228 compared to 38,660 (including joint operations) in FY24.

BUILDING AN EFFECTIVE ORGANISATIONAL CULTURE

At Tata Motors, culture is a powerful catalyst that fuels performance, optimizes potential, and helps us attract retain top talent. Our cultural transformation is anchored in the "More When One" framework, built on four core pillars: Be Bold, Solve Together, Own It, and Be Empathetic. These guiding principles shape our day-to-day interactions and long-term aspirations, enabling us to deliver exceptional employee and business outcomes.

To bring these pillars to life, we have identified eight distinct leadership behaviours Agility, Risk Taking, Owners Mindset, Empowerment, Collaboration, Accountability, Embrace Diversity, and Passion for Customers that serve as actionable anchors across the organization.

We have adopted a consistent and inclusive approach to our Employee Culture Survey, empowering our people to voice their perspectives and actively contribute to shaping our culture. The survey tracks three critical dimensions: engagement, culture pillar scores, and change management effectiveness. The results guide our efforts and reflect the growing momentum in our culture transformation journey. Through conscious, organization-wide efforts and active employee participation, we have seen a marked improvement in overall engagement scores reinforcing the belief that a strong culture not only drives results but also creates a meaningful workplace experience.

CAPABILITY DEVELOPMENT

Aligned with our cultural aspiration of being Bold, we are committed to preparing our workforce to be future-ready embracing agility and risk-taking as core behaviours. Empowering employees through continuous development is central to this commitment. We are focused on enhancing their functional, managerial, and leadership capabilities, ensuring they remain future-fit in a dynamic environment. The Tata Motors Academy plays a pivotal role in designing and delivering capability-building interventions across the organization. It caters to diverse workforce segments through tailored learning modules in Functional Excellence, Leadership Development, and Organization-wide Capability Building. The Academys efforts are anchored in four key functional pillars Customer Excellence, Product Leadership, Operational Excellence, and Management Education. Special emphasis is placed on priority areas such as ACESS, AI, Digital, Industry 4.0, and ESG, helping employees stay ahead of the curve. These initiatives not only build strategic capabilities but also foster a culture of self-driven learning and growth.

TALENT MANAGEMENT

At Tata Motors, we are committed to building a strong leadership pipeline and nurturing talent across all levels to create a true Talent Factory. Through our annual Organizational & Talent Review and robust succession planning, we identify and develop potential leaders for critical roles. Development programmes are designed based on talent assessments and are delivered in partnership with premier global business schools, TMTC, and other knowledge partners. Initiatives such as Leadership Trails 2.0 for senior leadership and Inner Circle, for high-potential mid- and junior-level managers are examples of our focused leadership development efforts. We offer a fast-track career growth programme for junior-level staff aspiring for higher-level roles, featuring a dedicated two-year development journey that includes multiple cross-functional stints, a General Management Programme with a premier management institute, and leadership development interventions with esteemed external partners. We also promote internal mobility through job rotations and our Career Explore portal, offering cross-functional and cross-location opportunities.

In line with our vision of becoming a learning organization, we actively support higher education for employees. Over 1,350 employees are currently pursuing diplomas, B.Tech, M.Tech, MBAs, and Ph.Ds in areas like AI/ML, EV Technology, and Customer Excellence enhancing both individual and organizational capabilities.

SKILL DEVELOPMENT

In our pursuit of excellence in craftsmanship and manufacturing, we continue to strengthen our focus on skill enhancement to deliver high-quality products. To keep pace with rapid technological disruptions and evolving market demands, we have implemented the ‘Future of Workplace strategy. This initiative equips our workforce with future-ready skills in areas such as High Voltage (Electric Vehicles), Mechatronics (Industry 4.0), Auto Electronics, and Vehicle Communication. Alongside reskilling our permanent employees, we are building a digitally enabled, agile, and young talent pipeline through our flagship full-time apprenticeship programme in new craftsman trades. We have also introduced an industry-first ‘Earn n Learn initiative under the brand name Kaushalya. This programme recruits ITI/XII students, trains them in basic skills, and places them on shopfloor On-the-Job Training (OJT). Over 2 3 years, participants pursue a ‘Diploma in Mechatronics, attending classes once a week and gaining hands-on experience five days a week. The curriculum and OJT are specifically designed to develop skills in EVs and Industry 4.0. Graduates of the

Kaushalya programme are subsequently employed by our channel partners and vendors, creating a robust talent ecosystem for the future. Over the past three years, the program has benefited more than 16,000 individuals and more than 1,672 trainees have been placed across the ecosystem.

INDUSTRIAL RELATIONS

We have labour unions for our technicians at all our plants across India except the Dharwad plant. The Company maintains cordial relations with its employees at its factories ices and has been supported by the unions in the off and implementation of several reforms to improve safety, quality, cost erosion and enhance productivity across all locations Technicians and unions have supported business continuity to achieve productivity levels during challenging times caused by COVID-19 and the semi-conductor supply chain crisis.

Employee wages are paid in accordance with the wage settlements signed that have varying terms (typically three to five years) at different locations. The expiration dates the wage agreements for various locations/subsidiaries are as below:

Location/subsidiaries	Wage Agreement valid until
Jaguar Land Rover UK Plants	31-Oct -25
Mumbai	31-Dec-25
Pune Passenger Vehicles	31-Aug-25
Pantnagar Commercial Vehicles	31-Mar-26
Lucknow Commercial Vehicles	31-Mar-28
Sanand Passenger Vehicles	31-July-28
Pune Commercial Vehicles	31-Aug-25
Jamshedpur Commercial Vehicles	31-Mar-26
Sanand 2 TPEM	31-Mar-28

A) LONG-TERM WAGE SETTLEMENTS (LTS)

Tata Motors fosters strong and collaborative industrial relations with its seven unions, representing over 15,000 technicians. Open dialogue, mutual respect, and joint forums help address challenges and align on shared goals. In FY25, five long-term, productivity-linked settlements were successfully signed at Lucknow, Sanand-1, Sanand-2 and TMBSL Lucknow & Dharwad reflecting our commitment to inclusive growth, future-readiness, and sustained partnership between management and workforce.

B) BONUS

Bonus settlements have been signed at all locations, based on a formula-driven calculation linked to improvements in profitability, productivity, safety, and quality. Beyond enhancing operational efficiency, this initiative significantly strengthens engagement and collaboration with our business partners, fostering mutual respect, shared responsibility, and transparency among employees.

C) ACCELERATING THE JOURNEY AT TPEM SANAND-2

Following its successful acquisition and assimilation of Sanand-2 into Tata Motors, the new facility has now transitioned into full-fledged production. This marks a significant milestone in our growth journey. To enable a seamless integration and empower the workforce, multiple initiatives have been rolled out across key focus areas Culture, Capability Building, Higher Education, Health & Well-being, and Collaboration & Communication. These efforts are aimed at fostering a cohesive work environment, aligned with Tata Motors values, and building a future-ready, engaged workforce.

DIVERSITY, EQUITY AND INCLUSION

At our organization, we firmly believe that diversity, equity, and inclusion (DEI) are essential drivers of innovation. By embracing varied perspectives and lived experiences from across different backgrounds, we create a workplace culture that encourages creativity, collaboration, and breakthrough thinking. To formalize our commitment, in FY24 we introduced a dedicated DEI brand identity DEIsha which serves as the anchor for all DEI-related initiatives across the organization. In FY25, we launched the Lighthouse Framework, designed to assess and advance progress across ten critical focus areas of DEI.

Some of the key initiatives this year include:

Inclusive Policies: All organizational policies were reviewed and made gender-neutral. Along with updates on our Sabbatical policy, two more policies Utkarsha and Vidyadhan were introduced to support our internal employees in need of genuine assistance for capability development.

Net Promoter Score / Culture and Engagement: We launched DEI Round Robbin a structured engagement initiative where women employees across locations participated in conversations around our cultural values.

Capability Development: DEIsha rolled out the second cohort of empowHER, a flagship empowerment program for women professionals at L4 and L5 levels. A total of 78 women have embarked on this journey.

Enabling Persons with Disabilities (PWD): We worked on PWD inclusion and onboarded ~ 141 PWD employees across locations such as Pune, Jamshedpur, and Dharwad and Lucknow. As of March 31, 2025, a total of 166 PWDs are contributing to our workforce.

Sensitization: Over 1,200 identified people have participated in ONEderful Conversations a half-day, facilitator-led workshops designed to build inclusive leadership capabilities.

Launched in November 2023, empowHER is a pioneering initiative by Tata Motors to support and empower women talent. The programme addresses the unique challenges women face at work and beyond, offering tools and insights through interactive sessions. In FY25, it engaged few women across L3, L4, and L5 levels, focusing on leadership, communication, negotiation, work-life balance, and mental well-being. Participants benefitted from personalised coaching, mentorship, and a supportive peer network. The programme encouraged self-reflection, helped build confidence, and strengthened leadership capabilities. Action plans were created to align with individual goals. Feedback shared internally and externally reflected highly positive experiences. empowHER has contributed significantly to fostering an inclusive culture and advancing gender diversity at Tata Motors.

Jaguar Land Rover

Safety

Our core aim is to maintain a workplace where Zero Harm is consistently achieved. We continue to focus on our three safety pillars of Safe Place, Safe Systems and Safe People, which provide the framework for our approach to continual improvement on our glidepath to Zero Harm. Our Zero Harm Metric tracks our progress on this journey, and over the past 12 months we have seen a sustained gradual improvement in the metric - a reflection of the reduced number of accidents in our workplaces over the last year. The Zero Harm Metric is tracked at Board level as one of the Enterprise KPIs. We continue to focus on our internal auditing programmes and data aggregation and analysis capabilities to understand where there are opportunities for further improvement. Our programme of safety process automation contributes to us meeting the requirements set out in our Safety Management System, allowing us to monitor and analyse data in real-time, quickly identifying and addressing potential issues and further contributing to our culture of safety and continuous improvement.

Our Safety Management System is continually refined to provide an effective framework for safety organisation, and our commitment to maintaining the highest standards of occupational health, safety and wellbeing for our colleagues, partners and clients is reflected in our continued certification to ISO45001.

Health and Wellbeing

We are advancing our health and wellbeing activities to progress our aspiration to be recognised as a global leader. We have developed programmes to achieve anchor organisation status, improving the health and wellbeing of our colleagues, and agency and supply chain partners, working with local health services and the communities we are part of across the globe.

We offer all colleagues access to a range of services to help them look after their wellbeing. These services include musculoskeletal, mental health, nutrition, fitness, sleep, addiction, mindfulness and other therapies as well as financial information and support. In the UK, we also offer mental health training for managers and colleagues and have trained more than 200 Mental Health First Aiders since launching the programme in early 2024.

We have a global approach to wellbeing and have created eight regional Wellbeing Centres in three different countries that allow us to deliver bespoke programmes across all our markets. We supported our employees with over 32,000 individualised sessions. One UK based health coaching programme, LeadWell, supported 1,500 colleagues and achieved satisfaction rates of up to +92 NPS.

DIVERSITY, EQUITY AND INCLUSION

Nothing is more important than our people and their experiences. We have made incredible strides in nurturing a workplace that is welcoming and rewarding for everyone, where training, coaching and new policies support people with opportunities to grow and thrive.

Diversity, Equity and Inclusion is becoming an ever-challenging topic globally; however, we believe that we must reflect the diversity of the world in which our colleagues and clients live. We are committed to our cultural transformation to create a positive, inclusive environment where everyone feels respected, valued and cared for.

To do this we are taking action to make tangible impact, measured against three internal ambitions: AMBITION 1 -Globally, 30% of all senior leaders to be female, by 2030. FY25 performance is 21% This is an increase of 3% from last year.

AMBITION 2 -

In the UK, 15% of all senior leaders to be from a Black, Asian or Mixed Ethnicity background, by 2030. FY25 performance is 7% This is the same percentage as last year.

AMBITION 3 -

Globally, for our Inclusion Index to reach over 85 by 2026. FY25 performance is 83

This is an increase of 3 points from last year.

(This asks colleagues to rate the statement in our annual employee engagement survey "I would recommend JLR as an inclusive employer".) The target date to achieve ambitions 1 and 2 has extended from 2026 to 2030. We recognise that we have more work to do and are allowing time to make further adjustments and for organic growth.

Our Global Reach

Our global Diversity, Equity and Inclusion (DEI) policy details our continued commitment to creating a safe, diverse, equitable and inclusive workplace. Since 2022, our Global DEI team has been working on our Global Digital Learning Experience in response to the DEI basics learning originally launched in the UK. The objective of this project was to develop a DEI learning that resonates with people across our global locations. In 2024, the Global Digital Learning Experience launched across 24 countries and regions, educating on cultural nuances while navigating local laws and cultural complexity, which are all different stages of the DEI journey.

In September 2024, we hosted our second Diversity, Equity and Inclusion Summit, welcoming 960 participants in person, and over 6,000 online, spanning 25 countries and 22 watch parties. This event celebrates the progress we make year on year and continues to cement our ambition to ensure that all colleagues are supported. The theme for this event was ‘Inclusion For All.

In 2024, we also held our first International Womens and Automotive Collective with three of our semi-conductor suppliers, to begin creating an inclusive environment throughout our entire ecosystem.

Our two Diversity, Equity and Inclusion Board co-sponsors, Barbara Bergmeier and Francois Dossa, have been a pillar to our progress in making an environment where we all feel proud to work, ensuring diversity, equity and inclusion is represented at the highest levels of our business. In 2024, Francois Dossa made the personal decision to leave JLR and step down as our co-sponsor. At this time we welcomed David Berry, Global General Counsel to be executive sponsor. In early 2025, Barbara Bergmeier made the personal decision to step down in her role as Executive Director, Industrial Operations, and co-sponsor of DEI, after making a huge impact over the past two years. In her place, Swarna Ramanathan has now stepped up and taken the role of Board co-sponsor alongside David Berry. They will continue to support our 15 colleague network groups, ensuring that colleagues have space to share their lived experiences, and learn from one anothers experiences.

OPPORTUNITIES AND CHALLENGES

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OUTLOOK:

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