Transforming To Be Relevant In The World Of Future Mobility

Tata Motors has had a robust FY18-19 which saw it clock an impressive growth of 17.9 per cent, with revenues from operations (including joint operations) of Rs. 69,203 crores compared to Rs. 58,690 crores in FY17-18. Growth in demand of M&HCVs and LCVs, new product offerings in passenger cars and utility vehicles were the key drivers that resulted in increase in its EBITDA margins to 7.4% in FY18-19 as against 4.1% in the previous fiscal.

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Mr. N. Chandrasekaran, Non-Executive Director and Chairman, Tata Motors, states in the company’s FY18-19 Annual Report: “At Tata Motors, we had announced a “Turnaround” programme in July 2017. Since then, we have undertaken a series of comprehensive steps to address different aspects of the business. In the CV segment, which is the backbone of the domestic business, the company has maintained its leadership position in the industry with a 45.1% market share in FY2018-19. The business delivered a 17.2% volume growth compared to the previous year.”

Winning decisively in CVs

The success of Tata Motors’ ‘Turnaround 2.0’ initiatives is evident in the CV space, where the company continued to deliver strong margins while upholding the EBITDA margins in challenging market conditions. All the four segments of the company’s CV business – MHCV, ILCV, SCV and PUs, and CV passenger vehicles – saw improved performance driven by all-round execution. Market share was gained across three of the four segments: MHCV at 55%, ILCV at 45.4% and SCV and PUs at 40.1%.

Intensifying turnaround