Tata Motors Ups Capex To ₹43,000 Cr For FY25, JLR To Get Around ₹35,000 Cr

Tata Motors Group has revealed a hike in its investment outlay primarily aimed at new product and technology development.

What Happened: The Tata Group company has increased its investment outlay for FY25 to ₹43,000 crore. The British subsidiary, Jaguar Land Rover (JLR), is set to receive the bulk of this investment.

In FY24, the group had earmarked a total of about ₹38,000 crore, with JLR getting roughly ₹30,000 crore and Tata Motors receiving ₹8,000 crore. The actual investment ended up being around ₹41,200 crore, with JLR getting more than ₹33,000 crore and Tata Motors more than ₹8,200 crore.

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For FY25, the group’s CFO, PB Balaji, stated that JLR’s investment would be “more like 3.5 billion pounds, broadly ₹35,000 crore, because all the product plans we had are coming together (next year)”. Tata Motors will continue to receive around ₹8,000 crore, marking a 6% increase for JLR and a flat rate for Tata Motors.

The investment is aimed at product and technology development for both JLR and Tata Motors. JLR CFO Richard Molyneux highlighted the launch of the Range Rover BEV and other new products in FY2026, which will replace less profitable vehicles and boost EBIT levels.

Why It Matters: This investment hike comes on the heels of Tata Motors’ India business becoming debt-free. The company’s CFO, PB Balaji, had stated that they were on track to become net automotive debt-free on a consolidated basis in FY25. However, despite posting strong numbers for the quarter ended March 2024, Tata Motors’ shares have remained under pressure as several analysts see some hurdles ahead for the company. This investment could be a strategic move to boost confidence among investors and stakeholders.

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