In a strategic push to advance its product and technology development, Tata Motors Group has announced an increased investment outlay of Rs 43,000 crore for the fiscal year 2025. This significant hike is primarily driven by its British arm, Jaguar Land Rover (JLR), which will receive the majority of the funds.
For FY24, Tata Motors Group had initially guided a total investment of approximately Rs 38,000 crore, with £3 billion (about Rs 30,000 crore) allocated to JLR and Rs 8,000 crore to Tata Motors. However, the actual investment exceeded expectations, reaching Rs 41,200 crore. This included £3.3 billion (over Rs 33,000 crore) for JLR and more than Rs 8,200 crore for Tata Motors, as disclosed by Tata Motors Group CFO PB Balaji during an earnings conference.
Looking ahead to FY25, the investment for JLR is projected to increase to £3.5 billion, approximately Rs 35,000 crore. “The investment will be more like 3.5 billion pounds because all the product plans we had are coming together next year,” Balaji stated. He also mentioned the need to address certain phasing issues to ensure timely product launches.
For Tata Motors, the investment will remain steady at around Rs 8,000 crore. “JLR is seeing about a 6% increase, while Tata Motors’ investment remains flat,” Balaji added, emphasizing that the investments are focused on products and technologies.
Jaguar Land Rover CFO Richard Molyneux elaborated on the new product launch program, highlighting that FY2026 will see the introduction of the Range Rover Battery Electric Vehicle (BEV) and other new products. “We will have Range Rover BEV in the market by then, and we will start replacing some of the less profitable vehicles with brand-new ones, which typically helps improve EBIT levels,” Molyneux explained.
Discussing the Range Rover BEV, Molyneux stressed that it is being developed uniquely to suit the Range Rover brand’s ethos. “This is not just a BEV sold as a Range Rover; it is the Range Rover with a BEV powertrain, offering the perfect combination of power, quietness, and serenity,” he said, noting that this model will be the top-end of the Range Rover lineup.
In addition to the BEV, JLR plans to continue developing its Range Rover and Range Rover Sport offerings and will launch the Defender OCTA later this year. This substantial investment underscores Tata Motors Group’s commitment to innovation and maintaining its competitive edge in the automotive industry, particularly in the electric vehicle segment.
