Detailed Narrative
Supply Chain Resilience Tested
Q2 FY25 tested Tata Motors' operational resilience with JLR facing significant supply constraints due to flooding at aluminum supplier Novelis. This restricted production to 86,000 units versus a normal run rate exceeding 96,000. Additionally, a quality hold on 6,000 units further impacted quarterly performance. Despite these challenges, JLR delivered its 9th consecutive quarter of positive EBIT, demonstrating underlying business strength.
Commercial Vehicles Weather Industry Storm
The CV business showed remarkable resilience amid an 11% industry volume decline. Despite Tata Motors CV volumes falling 19% YoY, the business sustained double-digit EBITDA margins through disciplined pricing and cost management. The company maintained its market share at 38.1% and saw positive momentum in October with vehicle utilization returning to previous year levels.
PV Business Launches New Growth Drivers
The passenger vehicle segment maintained market share at 13.3% while launching key new products including Curvv (both ICE and EV variants), Nexon iCNG, and Nexon.ev 45kWh. The Curvv launch showed strong initial response with 20% of bookings for the EV variant. EV business profitability improved despite strategic price cuts to drive mainstream adoption.