Tata Motors sets FY 25 capital expenditure budget at Rs 43,000 crore

21 May 2024 , 11:36 AM

According to a senior executive, the Tata Motors group has increased its FY25 capital expenditure budget to ₹43,000 Crore for new products and technology, with its British unit Jaguar Land Rover taking the largest part.

In FY24, the Tata Motors group estimated a 3 billion pound investment for Jaguar Land Rover (about ₹30,000 Crore) and ₹8,000 Crore for Tata Motors, for a total of approximately ₹38,000 Crore.

“JLR’s investment totaled 3.3 billion pounds (more than ₹33,000 Crore), while Tata Motors spent more than ₹8,200 Crore. So, we ended up investing around ₹41,200 Crore in FY24,” Tata Motors Group CFO PB Balaji stated.

He further stated that for JLR the planned expenditure is about 3.5 billion pounds, approximately ₹35,000 Crore, because all the product plans the company had, are falling in place.

He also said that the company is dealing with a phasing issue, and it needs to launch these products on time.

Balaji stated that for Tata Motors, they will repeat the ₹8000-odd Crore range. So, there is an increase of about 6% in JLR and none in Tata Motors. So, that’s how the investment would also be shaped.

Jaguar Land Rover CFO Richard Molyneux elaborated on the new product launch programme, saying, “Our new product will begin to be available in FY2026. We will have the Range Rover BEV on the market by then, as well as other models. At that point, we begin to replace some of the vehicles on which we earn less money with brand-new vehicles, which typically improves EBIT levels.”

On the Range Rover BEV, he stated, “We’re doing it differently. This is not a battery-electric vehicle (BEV) that will be sold as a Range Rover. This is the Range Rover equipped with a BEV powertrain.”

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