Tata Motors Group boosts investment for new products to ₹43,000cr
Tata Motors Group has announced a significant increase in its investment outlay for the fiscal year 2025 (FY25), raising it to ₹43,000 crore. This funding will primarily be directed toward the development of new products and technologies. The majority of this investment will be utilized by its British subsidiary, Jaguar Land Rover (JLR), as confirmed by a senior official of the company.
Comparison of investment outlay: FY24 v/s FY25
In the previous fiscal year (FY24), Tata Motors Group had projected an investment of approximately ₹30,000 crore for JLR, and ₹8,000 crore for Tata Motors. However, the actual investment exceeded these projections with JLR investing over ₹33,000 crore, and Tata Motors contributing more than ₹8,200 crore. This resulted in a total investment of approximately ₹41,200 crore for FY24 as reported by the Tata Motors Group CFO PB Balaji.
FY25 investment plans: JLR and Tata Motors
For FY25, Balaji revealed that JLR's investment will be "more like 3.5 billion pounds, broadly ₹35,000 crore," due to various product plans coming next year. He also mentioned a "phasing issue" that needs addressing for timely product launches. For Tata Motors itself, the investment will remain in the "₹8,000-odd crore range." This indicates a roughly 6% increase in investment for JLR and a flat rate for Tata Motors.
JLR's new product launch program
Richard Molyneux, CFO of Jaguar Land Rover, shed light on their new product launch program stating that "FY2026 is the year when our new product starts to hit." He revealed plans for a Range Rover battery electric vehicle (BEV) to be on the market by then. Molyneux further explained, "This is not a BEV which is going to get sold as a Range Rover. This is the Range Rover with a BEV powertrain."
