N Chandrasekaran, non-executive chairman, Tata Motors, and chairman, Tata Sons, has previously acknowledged that JLR is taking steps to cut costs while taking a calibrated approach towards future investment in the product portfolio.He further said the company was “actively looking at partnerships and prioritizing its investments” while ensuring that it was not compromising its future. “These are critical interventions and JLR is committed to deliver cost and cash improvements,” he added.Source: Business Standard … [Read more...] about JLR CEO’s salary reduces by 42% in 2 years
The Indian luxury car market is bracing for its steepest recorded decline in 2020, with the industry estimating sales to fall as much as 40%, pulling it down to the levels of 2011. While Covid-19 has led many middle-class families to opt for personal mobility, triggering demand for entry-level cars, the impact of the pandemic on the economy and businesses has forced wealthy individuals and companies to cut down on discretionary spending, such as on luxury vehicles.Sales had fallen 35% during the January-March period, while much of the following quarter was lost due to Covid-19 and the lockdown. Industry insiders said sales so far were down 50-55% from last year. They hope some support would come from festive demand.According to several people in the know, only 10,000-11,500 luxury cars were sold in the first eight months of 2020. The only glimmer of hope is, with the unlocking, there is a month-on-month recovery in sales across luxury car brands. Yet, the industry at best may deliver … [Read more...] about Indian luxury car market set to register a record 40% decline in 2020
Mumbai: Tata Motors may slash more than Rs 50,000 crore from the previously estimated capital expenditure over three years at the Jaguar Land Rover unit and India operations, in a bid to achieve its ambitious target of wiping off debt from the balance sheet.Last year, the company had guided for a capex of 4 billion pounds (Rs 37,600 crore at current exchange rate) in each of the next three years at British luxury-vehicle unit JLR. On an average, Tata Motors spends about Rs 4,500 crore a year for the standalone India business. These have now been brought down to 2.5 billion pounds at JLR and Rs 1,500 crore for the ongoing fiscal year.The company’s recent indications to investors and analyst comments suggest that it would continue with similar capex at least for FY22 and FY23 as well. That would translate into a reduction of over Rs 42,000 crore at JLR and Rs 9,000 crore in India over three years.The guiding principle for capex has been moved from “willingness to … [Read more...] about Tata Motors to cut mid-term capex by Rs 50,000 crore on path to zero-debt target
Tata Motors approach to achieve a near net debt zero target by FY24, is primarily pivoted on revenue improvement, cost-cutting, and capex control plans laid out for four key businesses (including NBFC), said P B Balaji, CFO – Tata Motors at a recent meeting hosted with a group of investors. Balaji discussed the business-wise roadmap to attaining positive free cash flow . The target to be near net debt zero by FY24 is built on three key pillars--business level FCF generation, monetization of non-core assets, and top-up equity (if required). The capex plans laid out for FY21 (GBP2.5b for JLR and INR15b for the India business) would not see any material change in the foreseeable future, said the recent Motilal Oswal Institutional equities report.The guiding principle for capex moves from 'willingness to invest' to 'ability to invest', i.e., capex would be supported by operating performance and would not be invested independent of operating performance. As the monetization of … [Read more...] about Here is how Tata Motors paves the way out from debt?
Automakers hope to make up for some of the lost demand depending on how quickly they can resume operations. Output in the first two months of the year is down an annual 1.5%.Britain's manufacturers have also been hit with Brexit uncertainty and, like the industry elsewhere, have had to rapidly adapt to falling diesel sales, electrification, stricter emissions rules and invest in autonomous technology.Last week, Prime Minister Boris Johnson called on firms to help fight the virus with the likes of Ford involved in a consortium to produce medical ventilators."The entire industry stands ready to help the national effort, from production of essential medical equipment, to sustaining delivery of essential supplies, providing and maintaining emergency services vehicles and transporting key workers," said Hawes. … [Read more...] about Coronavirus to cut UK car output by over 15%, more if crisis lasts months