Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors — Investor Day (June 2024)
139 slides from Tata Motors Passenger Vehicles's investor day presentation, Jun 11, 2024
Slide 1: Tata Motors India Investor Day 2024
Tata Motors India Investor day 2024 Tuesday, 11 June, 2024
Slide 2: Schedule for the Day
Schedule for the Day First Half Highlights of FY 24 & demerger update CV Business Update Future Proofing With Differentiated Products & Technology Accelerating Digital - Context & Priorities CV Business Q&A session Sustainability Update Second Half PV & EV Business Update Expert Speak - Roadmap of I
Slide 3: Safe harbour statement
Safe harbour statement Statements in this presentation describing the objectives, projections, estimates and expectations of Tata Motors Limited (the “Group”) and its business segments may be “forward-looking statements” within the meaning of applicable securities laws and regulations. Actual result
Slide 4: FY24 highlights & demerger update
PB Balaji FY 24 highlights & demerger CFO, Tata Motors Group update
Slide 5: TML Consolidated Performance: Turnaround delivered
TML Consolidated Performance: “Turnaround delivered” Revenue (₹ K Cr) EBITDA (₹ K Cr) EBIT % PBT (bei) (₹ K Cr) 62.8 15.0% 438 60.0 11.7% 13.0% 10.9% 50.0 11.0% 28.9 8.1% 21.9 346 8.3% 9.0% 19.8 291 302 40.0 14.4 16.6 263 273 270 261 250 278 7.0% 11.5 233 3.7% 0.0% 0.7% 10.3 189 30.0 5.0% 14.4 -1.5
Slide 6: Both India businesses have scripted a strong turnaround
Both India businesses have scripted a strong turnaround.. IndAS, ₹ K C r CV* PV* 78.8 52.4 70.8 47.9 52.3 31.5 33.1 16.6 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 CV Revenue PV Revenue 12 10.8% 0.12 10 0.1 10 0.1 8 6.5% 0.08 7.4% 6.4% 8 0.08 5.3% 6 0.06 6 0.06 4 0.04 4 8.5 0.04 2.0% 4.2% 3.7% 5.3 2 3.
Slide 7: … and delivered highest ever profits
… and delivered highest ever profits IndAS, ₹ K C r CV* PV* CV PBT(bei) PV PBT(bei) 6.1 1.4 3.2 0.7 -0.5 -0.1 -0.9 -1.7 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 * Represents the details at consolidated segment level 7
Slide 8: Investments, free cash flows and becoming debt free
Despite step-up in …have delivered robust free …to become debt free investments… cash flows… IndAS, ₹ K C r 15.5 4.9 10.3 8.3 6.4 2.7 6.2 2.4 1.9 3.7 2.6 -1.0 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 (1) Includes free cash flows of TML, TMPVL, TPEML and JO FIAPL, TCL, includes cor
Slide 9: We have navigated the choppy waters well
We have navigated the choppy waters well WIN DECISIVELY IN CV WIN SUSTAINABLY IN PV WIN PROACTIVELY IN EV • HCV and ILMCV trucks continue to win • Podium finish in PV secured • #1 EV player with 73% market share on a strong base • Third consecutive year of highest ever • Completed milestone of 150k
Slide 10: We have also simplified the business through corporate actions
We have also simplified the business through corporate actions SIMPLIFICATION NET DEBT ZERO JOURNEY • ADR’s delisted. • India business net debt free in FY24. • DVR simplification – shareholder approval recd. • JLR on track to become net debt free in FY25. • Tata Motors Finance to be merged with Tata
Slide 11: Demerger of Tata Motors – a logical progression
Demerger of Tata Motors – a logical progression 1 Both CV and PV businesses have grown sizably in past few years. 2 Limited synergies between CV and PV business. Considerable synergies to be harnessed across PV, EV and JLR in areas of EV’s, autonomous vehicles and vehicle software. 3 Demerger shall
Slide 12: Rating agencies affirm independent strong credit profiles
Rating agencies affirm independent strong credit profiles of both businesses Rating Agencies FY23 rating FY24 rating Improvement S&P BB- / Stable BB+ / Positive CARE AA- / Stable AA+ / Stable Moody’s B1 /Stable Ba3 / Positive CRISIL AA- / Stable AA / Positive ICRA AA- / Positive AA / Stable
Slide 13: We will deep dive today on
We will deep dive today on 1 Major shifts experienced and “What got us here” 2 Our outlook as the next phase of India’s growth story starts 3 Strategic Pillars to leverage on trends and technologies and unlock growth – “What will get us there” 4 Leading the sustainability journey and achieving m
Slide 14: Next phase: Shifting gears to realise our potential
Next phase: Shifting gears to realise our potential 14
Slide 15: Join us for an immersive experience showcasing the future of mobility
Join us for an immersive experience showcasing the future of mobility EV showroom experience Exciting new products Digital Innovations New Technologies 15
Slide 16: Thank You
TATA MOTORS Connecting Aspirations Thank You qe TATA
Slide 17: CV Business Update
Girish Wagh CV Business Update Executive Director, Tata Motors Limited
Slide 18: Contents
Contents Business context Business update and strategic actions Vehicles businesses Non-vehicular downstream business Digital business Megatrends and our response Sustainability update 18
Slide 19: Domestic CV Industry to continue on its long-term growth trajectory
Domestic CV Industry to continue on its long-term growth trajectory CV Industry has fully absorbed the impact of all previous disruptions and changes so far Total freight traffic (BTKM1) % Growth CV TIV2 K Units TIV + 4-5% CAGR 1,042 1,002 over FY24 BTKM + 6-8% over FY24 FY86 FY88 FY90 FY92 FY95 FY9
Slide 20: Trucking demand expected to be positive
Trucking demand expected to be positive Key demand drivers Outlook (2028/29) GDP growth Sustained growth in domestic GDP with increased per capita consumption Power Cement Consumer goods Sectoral growth Steel Port (EXIM) eRetail Coal Construction Mining Govt infra spend Expected to double by 2030, w
Slide 21: Passenger mobility is expected to be buoyant
Passenger mobility is expected to be buoyant Key demand drivers Outlook (2028/29) GDP growth Sustained growth in domestic GDP with growing levels of income and consumption Momentum to continue (National infra pipeline, Bharatmala, Sagarmala and state level infra investments), Infra development impro
Slide 22: TML CV business context and our focus areas
TML CV business context and our focus areas Domestic Vehicle International Downstream Tech-led Logistics Business Business Business play - Economic growth driving - Developing markets - Drive customer peace of - Data enabled solutions to new vehicle demand to drive growth mind thru value added solve
Slide 23: Business organized around verticals
Business organized around 8 verticals to drive sharper focus on delivering superior value to the customers Cyclical Domestic Vehicle Businesses Non-cyclical CV HCV ILMCV SCVPU Passenger Industry TIV based International business CV Business Non-vehicle Downstream business Industry Parc Shared Mobilit
Slide 24: Business has delivered a record performance in FY24
Business has delivered a record performance in FY24 70.8 78.8 10.8% 52.3 7.4% Revenue (In ‘000 Cr) % EBITDA & EBIT 33.1 4.2% 3.7% 8.2% 5.2% 0.4% -0.9% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 CV Revenue (In '000 Crs) % EBITDA % EBIT 6.0 Cash flow (in ‘000 Cr) 36% 4.2 % RoCE* 3.1 21% 1.4 FY21 FY22 FY2
Slide 25: Registration (Vahan) market share
Registration (Vahan) market share Overall market shares steady, with trucks continuing to remain strong; Green shoots in SCV Tata Commercial Vehicles | Domestic market share* Vahan Ref Category 41.7% 39.1% 39.7% 39.0% HCV > = 25.5Ts 38.7% 39.1% ILMCV 3.5 to 25.5Ts SCVPU Up to 3.5Ts CV Passenger FY23
Slide 26: Trucks: Winning with wider and superior product portfolio
Trucks: Winning with wider and superior product portfolio whilst improving margins Growth drivers HCV • Maintaining product portfolio superiority, coupled with Value Added Services (VAS) ~11% improvement in • Lead in alternate fuel journey (NG + ZEV) average realisation Tata Prima over 6 quarters •
Slide 27: CV passenger: Improved mix, capacity actions and leaner cost structure
CV passenger: Improved mix, capacity actions and leaner cost structure paving way for profitable growth Growth drivers • Product superiority on performance, reliability & TCO established • Innovation intensity continued with launch of 60 new variants (incl Magic Bi-fuel, Winger 9S) improving address
Slide 28: SCVPU: Improved unit economics through structural interventions
SCVPU: Improved unit economics through structural interventions and enhanced value delivery Growth drivers Margin drivers • Leverage BS6 Ph 2 vehicles delivering superior value • Improved realization on enhanced product performance • Provide full complement of multi-fuel options incl EVs • Better ma
Slide 29: Ace EV: Demand building up progressively
Ace EV: Demand building up progressively within and beyond eCommerce Ace EV Retails (FY24) Customer base expands Introduced Ace EV 1000 2115 855 840 381 Q1 Q2 Q3 Q4 • 56 Anchor customers with repeat purchase # EVSCs # Fast Chargers • Key segments penetrated: e-Commerce 150 1000 Milk, Waste managemen
Slide 30: Focused actions leading to strong NPS, brand and customer metrics
Focused actions leading to strong NPS, brand and customer metrics Net promoter Top of mind Customer satisfaction score (NPS) awareness score 792 813 812 71 72 68 57 56 55 FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 • Highest NPS score ever; Improvement in NPS across all segments • Successful implem
Slide 31: International Business improving profitability
International Business improving profitability and building stronger ecosystem Volumes to improve gradually with market recovery; Seeding EVs in prioritized markets Shipments (000’s) Growth drivers 50,000 45,000 40,000 34.8 • Creating integrated play in prioritized emerging markets 35,000 30,000 25,
Slide 32: Scaling up Spares and Aftersales business
Scaling up Spares and Aftersales business Expanding Downstream business play; Highest ever spare and service penetration achieved in FY24 Key focus areas Service Penetration Spares Penetration • Offer a seamless customer experience 2.7X Growth 2.5X Growth with proactive engagement through digital ch
Slide 33: TML Smart City Mobility Solutions Ltd
TML Smart City Mobility Solutions Ltd: Established a capability for large scale eBus deployment with enabling depot infrastructure World Class Depot Infrastructure Cumulative Market Share Future Plans 34% Private Sector Others TML • Foray into private segment with focus on staff transport Every thir
Slide 34: Digital Business: Deploying smart logistics solutions at scale
Digital Business: Deploying smart logistics solutions at scale through platform integration FleetEdge E-Dukaan Fleet Verse >600 k 3.5 X ~24 K # vehicles Revenue Platform Assisted on platform growth in FY24 Retails (# in FY24) • Improve width & depth of • 45% Digital contribution in • Superior custom
Slide 35: Leading the Megatrends through core capability building
Leading the Megatrends through core capability building Mega Trends ACES Sustainability Digitalisation ADAS Connected Net Zero GHG Circularity Data Monetisation Electrification Software Renewable Energy End to end digitalised processes • ADAS truck deployment in • Targeting to achieve ‘Net Zero’ • A
Slide 36: Leading the sustainability journey in alignment with project Aalingana
Leading the sustainability journey in alignment with project “Aalingana” Driving net zero Circularity Preserving nature & biodiversity Product plans aligned with SBTi Circularity framework ‘TATVA’ Signed up for Science Based launched; action plans rolled out Target Network (SBTn) RE100 roadm
Slide 37: Thank You
TATA MOTORS qb TATA Connecting Aspirations Thank You
Slide 38: Future Proofing Through Differentiated Products & Technology
Future Proofing Through Chief Technology Officer, Differentiated Products & Tata Motors Limited Technology
Slide 39: Drivers for Technology & Products
Drivers for Technology & Products Sustainability & Circularity 1 Growth & Investments 6 Regulatory Framework 2 5 Policy & Incentives 3 Consumer Preferences 4 Emerging Revenue Pools Tata Motors Approach : Value Creation for all Stakeholders 39
Slide 40: Product Transformation Journey
Product Transformation Journey Transformation 3 Sustainability/Carbon Neutral Transformation 2 Alternate Fuels: (E20,Flex Fuel, LNG) BS6 Ph2/RDE Net Zero o BEVS Transformation 1 o FCEV BS6 Phase 2, Fuel Eff Regulation o H2 ICE BS4 to BS6 Alternate Fuels :(E10,E20,CNG,LNG) Circularity Tot
Slide 41: Unbeatable Powertrain portfolio delivering multiple applications
Unbeatable Powertrain portfolio delivering multiple applications Multiple Powertrains Best in Class FE, Performance, NVH, TCO, Durability & Reliability New Gen New Gen Stellantis Cummins CNG Family KRYOTEC SCVs, UVs, Pick-ups 6T – 19T : ILMCVs, Buses, Tippers Passenger & Small commercial Vehicles IL
Slide 42: Advanced Transmissions for new age mobility
Advanced Transmissions for new age mobility New 9 speed High Torque Gearbox - New Rear Axle RA112 – Signa HCV New Rear Axle – Signa HCV HCV Tipper New Optimized Gearbox -Ultra ILMCV New High torque gearbox - ILMCV Rear Axle - 12m EV Bus New 5speed Gearbox G65DD - Intra V30 New High torque Gearbox -
Slide 43: Emerging Fuels Scenario
Emerging Fuels Scenario Sulphur < 10 ppm, Gasolin RON 91 RON 95 e Diesel Sulphur < 10 ppm, Cetane 52 CNG 4,500 Stations 6,000+ Stations 10,000 Stations 5 stations operational 50 stations in pilot 1000 stations by 2027 LNG so far program by 2024 H2 Grey H2 Fuel Cell H2 ICE Green H2 (initiation) ED5 E
Slide 44: Manifested into products & technology demonstrators
Manifested into products & technology demonstrators Alternate Fuelled Zero Emission (BEVs & H2 Powered) ACE EV Ace Gold CNG Intra Bi-Fuel SCV 407g SFC CNG LCV Country’s First LNG Truck Ultra 9m & Starbus 12m (AC/Non- LPT 1009g – CNG ILCV Starbus LP913/52 CNG (AC) AC) EV Bus Prima 49 T (2014 Auto Exp
Slide 45: Modular architecture
Modular architecture SCALABLE Modular & scalable architecture. Ready to deliver Trucks :shorter lead time FLEXIBLE Prima Platform Modular cabin width , Sleeper/Nonsleeper options : Multiple wheelbase options Common Aggregates & architecture across platform LIGHT WEIGHT Optimized ladder fra
Slide 46: eMobility: Technology Horizon
eMobility : Technology Horizon Aggregate/Attribute Today Mid-Term Long-Term System Architecture < 500 Volts (PV, SCV & LCV) Introduction of 800 Volts Introduction of 1000+ Volts (Volts) > 500 Volts (Trucks & Buses) Electric Drive (Type) Central Drive, E Axles E Axles In-wheel with torque vectoring B
Slide 47: Pathways to Net Zero - Hydrogen based Technologies
Pathways to Net Zero - Hydrogen based Technologies Hydrogen + CNG (Blended Fuel Engines) Delivery of first FCEV Bus to IOCL - Flag Off by Minister MoPNG @ New Delhi(Sep 2023) Hydrogen Fuel Cell Technology Hydrogen Combustion through ICE Delivery of FCEV Bus to Indian Army – Received by Chief o
Slide 48: Hydrogen: Applications landscape for Automotive Sector
Hydrogen : Applications landscape for Automotive Sector Route Predictability Low High E-Commerce, Port Tippers Long Haulage High Application High Battery or Heavy Trucks, Fuel Cell Buses Electric Round-the-clock (Case basis) Passenger Vans, Vehicle Light Trucks Medium Vehicle weight Fuel Cell Electr
Slide 49: Roadmap of ADAS for Active Safety
Roadmap of ADAS for Active Safety Today Tomorrow Electronic Stability Control (ESC) Fusion based Autonomous Emergency Braking(AEB) & LDWS Forward Collision Warning Lane Keeping Assist MHCV Hill Start Aid Lane Centering Active Steering System Adaptive Cruise Control(ACC) Collison Mitigation System(CM
Slide 50: Fostering Innovation
Fostering Innovation Tata Motors ranks 1st with highest number of 871 Granted patents amongst the (CV/PV) Indian OEM (as of 31st March 2024) * Awards & Recognitions : FY2324 Tata Motors : The most R & D intensive firm from India – 16th Global Innovation Index “Asia IP Elite 2024” Award at Intell
Slide 51: Differentiated products and technologies create value for customers
“We are well on our course of continuously providing differentiated products and technologies and create value for our customers.” Thank You
Slide 52: Accelerating Digital - Context & Priorities
Accelerating Digital - Context & Priorities Mangesh Sathe Bharat Bhushan Swapnil Shah Head, Tata Strategic Head Digital Business Founder and CEO, Management Group CV, TML Freight Tiger
Slide 53: Indian road logistics value chain is fragmented, inefficient, and slow
Indian road logistics value chain today is fragmented, inefficient, and slow xx # of stakeholders Shippers Logistics Service Providers (LSP) Supply Brokers Truck Owners Consignee Fragmented ~43M 40K+ 100K+ 800K+ >75% of the market comprises of small players with low geographic reach & low-tech capab
Slide 54: Inefficiencies across Truck and Trip ecosystems
Inefficiencies across ‘Truck’ and ‘Trip’ ecosystems impacts all key stakeholders Non - Exhaustive Shippers Logistics Service Providers & Brokers Truck Owners • Poor visibility of freight demand • Higher spot market rates due • Poor visibility of truck supply • Empty backhaul to poor truck supply vis
Slide 55: Inefficiencies can be addressed through tech-led solutions
Inefficiencies can be addressed through tech-led solutions to better serve CV stakeholders Downstream ecosystem Commercial vehicle market • Larger market with faster growth potential • Relatively less cyclical than the CV market • Fragmented with large • Cyclical and concentrated unorganized sector
Slide 56: Logistics inefficiency themes
Opportunity to digitally integrate the ‘Truck’ & ‘Trip’ ecosystems to address logistics inefficiencies Non - Exhaustive Truck Ecosystem Trip Ecosystem Inefficient Price Discovery Telematics solutions Driving Transport Management System visibility Logistics inefficiency themes Poor Truck (TMS) for Sh
Slide 57: Integration of digital platforms across Fleet Edge & Freight Tiger
Integration of digital platforms across Fleet Edge & Freight Tiger for truck & trip ecosystems Stakeholders Shipper Logistics Service Owner/ Driver / End Provider customer i i Info, Goods and Money flow Transport Management Freight Connected Vehicle Carrier Matching Solution Assignment Platform FREI
Slide 58: Fleet Edge
TATA MOTORS FLEET EDGE
Slide 59: Fleet Edge comprehensive connected vehicle platform
Fleet Edge is envisioned as a comprehensive connected vehicle platform Key tenets of Fleet Edge for fleet owners Optimize cost through real time, actionable insights 1 on vehicle health, operations & fuel management XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX 2 Improve asset uptime and utilization XXXXX XXX
Slide 60: Key offerings on Fleet Edge platform
Key offerings on Fleet Edge platform Track & Trace Driver Behavior XXXXX XXXXX XXXXX XXXXX Vehicle Health XXXXX XXXXX Trip Planning XXXXX XXXXX Mileage Saarathi XXXXX XXXXX XXXXX Transactions 60
Slide 61: Key offerings on Fleet Edge platform
Key offerings on Fleet Edge platform Track & Trace Driver Behavior Vehicle Health XXXXX XXXXX Trip Planning XXXXX XXXXX XXXXX XXXXX Mileage Saarathi XXXXX XXXXX Transactions Fleet Edge solution goes beyond just track and trace and offers fuel management as one of the key features 61
Slide 62: Key offerings on Fleet Edge platform
Key offerings on Fleet Edge platform Track & trace Driver Behavior Vehicle Health Trip Planning Mileage Saarathi Transactions Enables driver, vehicle and cargo safety through proactive monitoring of driving behavior 62
Slide 63: Key offerings on Fleet Edge platform
Key offerings on Fleet Edge platform Track & trace Driver Behavior Vehicle Health XXXXX XXXXX Trip Planning Mileage Saarathi Transactions Improve vehicle uptime & utilization through fleet-level, vehicle-level analytics & actionable fleet performance reports 63
Slide 64: Key offerings on Fleet Edge platform
Key offerings on Fleet Edge platform Track & trace Driver Behavior Vehicle Health Trip Planning Mileage Saarathi Transactions Comprehensive trip management solution allowing flexibility & convenience to create & manage trips 64
Slide 65: Key offerings on Fleet Edge platform
Key offerings on Fleet Edge platform Track & trace Driver Behavior Vehicle Health Trip Planning Mileage Saarathi Transactions Fuel efficiency improvement – 60% vehicles with Mileage Saarthi seeing ~10% improvement in fuel efficiency 65
Slide 66: Key offerings on Fleet Edge platform
Key offerings on Fleet Edge platform Track & trace Driver Behavior Vehicle Health Trip Planning Mileage Saarathi Transactions Fleet Edge is architected be a scalable platform to allow integration of existing market solutions through APIs 66
Slide 67: Fleet Verse
TATA MOTORS FLEET VERSE
Slide 68: Launched Fleet Verse e-commerce platform for commercial vehicles
Launched ‘Fleet Verse’ – a first of its kind e commerce platform for commercial vehicles https://buytrucknbus.tatamotors.com Envisioned to deliver superior online buying experience that is FAST, SAFE, SMART and RELIABLE Key features: Product AI Chat Rich Product Online Configurato Bot Catalogue Fina
Slide 69: Freight Tiger
TATA MOTORS FREIGHT TIGER
Slide 70: FT provides unique solutions for Shippers, LSPs and Fleet Owners
FT provides unique solutions for Shippers, Logistics Service Providers and Fleet Owners Transport Carrier Management Matching Solution (TMS) Shipper Logistics Service Provider (LSP) Fleet Owners 70
Slide 71: Only player to have a full-suite TMS and Marketplace platform
Only player to have a full-suite TMS and Marketplace platform Bird's eye view of the origin Live Transactions & destination centers on FT Platform 71
Slide 72: Our unique solutions serve stakeholders across the logistics ecosystem
Our unique solutions allow us to serve stakeholders across the logistics ecosystem SaaS Offerings Exclusive Add-ons END-TO-END TMS PRODUCT SUITE FT Logistics Procurement Managed Services by Supply Chain Experts FT Dispatch Planning + Direct Integration will GPS providers & telcos TATA Motors Partner
Slide 73: Improved metrics and cost savings
.. leading to improved metrics and cost savings Cement FMCG Giant FMCG Giant Manufacturer 47% 11% ₹25Cr+ Improvement in SLA compliance by Reduction in overall transit time Savings with lead correction and building a model to reduce Order through dispatch planning and diversion management Execution T
Slide 74: Customer Portfolio consists of Marquee Shippers and LSPs
Customer Portfolio consists of Marquee Shippers and LSPs Conglomerates FMCG Companies Top LSPs Cement Alcobev Building Construction Material E-commerce Tyre Miscellaneous Strategic Partner 74
Slide 75: Thank You
TATA MOTORS Connecting Aspirations Thank You qe TATA
Slide 76: CV Business Q&A session
CV Business Q&A session Girish Wagh PB Balaji G V Ramanan Executive Director, Tata CFO, Tata Motors Group VP Finance, Tata Motors Motors Limited Limited
Slide 77: Growing Responsibly
GROWING RESPONSIBLY S J R Kutty Sneha Gavankar Chief Sustainability Officer GM, Treasury, Investor Relations Tata Motors Ltd. Tata Motors Ltd.
Slide 78: Question 1
QUESTION 1 This has been a year of phenomenal Growth for Tata Motors, but as we all know, growth usually is at the cost of the Planet, you know, more CO2, more emissions from products, in operations, more freshwater use, waste going to landfill, biodiversity loss etc. etc. how is Tata Motors plannin
Slide 79: CO2 reduced in our operations
53,000+ 16% Tons CO2 REDUCED IN OUR OPERATIONS EQUIVALENT TO 2.4 Million TREES in a year
Slide 80: Renewable electricity used in our operations
21,10,00,000 Renewable Electricity units USED IN OUR OPERATIONS 54% EQUIVALENT TO 46,000 Houses with Solar Roof tops of 3 kW
Slide 81: Solar PV Installations at our Manufacturing Sites
16 MWp 6 MWp 2 MWp 8 MWp 23 MWp 1 MWp Solar PV Installations at our Manufacturing Sites
Slide 82: Power consumption
POWER CONSUMPTION 100% RE% 60% 40% FY24 FY25 FY2X POWER COST
Slide 83: CO2 reduced in the use phase of our vehicles
More than a Million Tons CO2 REDUCED IN THE USE PHASE OF OUR VEHICLES EQUIVALENT TO Millions of TREES in a year
Slide 84: Freshwater reduced in our factories
28,00,00,000+ 5% Liters of Freshwater # REDUCED IN OUR FACTORIES # excludes harvested rainwater EQUIVALENT TO Putting a glass of freshwater in almost every Indian household
Slide 85: Waste reduced in our factories
17000+ 10% Tons Waste REDUCED IN OUR FACTORIES EQUIVALENT TO 11,000 Cars worth of weight
Slide 86: Question 2
QUESTION 2 Diverting waste away from landfill is good but how are you ensuring that your dependence on virgin resources are also reduced and how do we move away from anecdotal examples of recycling to a real and thriving Circular Economy?
Slide 87: Circular Economy Framework
1.0 तत्त्व 1.0 CIRCULAR ECONOMY FRAMEWORK
Slide 88: Tata Motors operations, customer care, downstream
TATA MOTORS OPERATIONS CUSTOMER CARE « DOWNSTREAM
Slide 89: Remanufactured aggregates
REMANUFACTURED 23933 Engines 9216 Clutch 3728 Fuel injection aggregates 718 ATS aggregates 618 Cabins
Slide 90: Re.Wi.Re facilities
5 Re.Wi.Re facilities Locations: Jaipur, Bhubaneshwar, Surat, Chandigarh and Delhi-NCR 72000 vehicles annual dismantling capacity
Slide 91: Question 3
QUESTION 3 As far as TML’s operational boundary is concerned its very clear that you are walking the talk, but as we all know we are not our operations. How is this transformation agenda influencing TML’s value chain?
Slide 92: Aikyam Supply Chain Collaboration Platform
AIKYAM Supply Chain Collaboration Platform
Slide 93: A model ESG Roadmap for our Channel Partners
A model ESG Roadmap for our Channel Partners
Slide 94: Question 4
QUESTION 4 We’ve touched upon Carbon, Circularity & even Value Chain, but I’ve heard you say that all of this is a means to an end, namely preserving Nature & Biodiversity, how far have we progressed on that journey?
Slide 95: 1300+ species of flora and fauna recorded
1300+ SPECIES OF FLORA & FAUNA recorded at TML Operations in India
Slide 96: A Scientific approach to Measure and Improve Biodiversity
A Scientific approach to Measure and Improve Biodiversity
Slide 97: Science Based Targets Network membership
TATA MOTORS OC) SCIENCE BASED TARGETS NETWORK Foret aes GLOBAL COMMONS ALLIANCE About Us ~ How it works ~ Take action now ~ Resources ~ News and Events ~ Members-Only Corporate Engagement SBTN Corporate Engagement Program Members
Slide 98: Wetlands of the Central Asian Flyway
Wetlands of the Central Asian Flyway
Slide 99: Tata Motors
TATA MOTORS
Slide 100: Question 5
QUESTION 5 How exciting has been this journey so far and what milestones do you see next for Tata Motors?
Slide 101: Tata Motors
TATA MOTORS
Slide 102: Question 6
QUESTION 6 If there was just one key takeaway for our investor community from this journey what would it be ?
Slide 103: Thank You
TATA MOTORS Connecting Aspirations Thank You qe TATA
Slide 104: PV & EV Business Update
Shailesh Chandra PV & EV Business Update Managing Director, TMPVL and TPEML
Slide 105: In FY24, TMPV and TPEM achieved lifetime highs across key metrics
In FY24, TMPV and TPEM achieved lifetime highs across key metrics Both businesses continued growth trajectory, resulting in Rank #2 in H2 FY24 3rd Consecutive Year of Lifetime High Revenues Lifetime High Profitability Lifetime High Volumes with Increasing Realization for Both Businesses Volume ('000
Slide 106: Our growth has been driven by the success of our products
Our growth has been driven by the success of our products We have been able to win Top 2 ranks in nearly all addressable segments Sub Compact SUV Compact SUV High SUV PUNCH NEXON HARRIER & SAFARI Rank #1 Rank #1 Rank #2 (40% MS) (28% MS) (26% MS) Mid Hatch Premium Hatch Entry Sedan TIAGO ALTROZ TIGO
Slide 107: Our multi-powertrain strategy has yielded additional volumes
Our multi-powertrain strategy has yielded additional volumes Despite no new nameplates, we achieved volume growth by leveraging new powertrains CNG & EV Volumes increased by 120% and 48% YoY 91k 74k FY23 50k 41k FY24 CNG EV Basis wholesale volumes Innovative Twin-Cylinder iCNG Range Penetration of C
Slide 108: Our new facelifts have been well received in the market
Our new facelifts have been well received in the market We have strengthened our key brand pillars of design, safety and technology Digital Design Language Segment-Leading Safety Advanced Technologies • Persona-based design attracting wide range of • 5★ GNCAP rating for all 3 facelifts with best-in-
Slide 109: We have consolidated our leadership position in EVs
We have consolidated our leadership position in EVs Despite intensifying competition, we have maintained 70%+ market share 120 Wholesale ('000s) 100 % Key Highlights of Our EV Leadership 87% 84% 90% 100 72% 73% 80% 80 73.8 70% 48% 3bn+ 60% Growth YoY in Kilometres 60 47%1 50% EV Volumes for travelle
Slide 110: India's widest and most successful EV portfolio
We have India’s widest and most successful EV portfolio Our portfolio consists of tech-first, aspirational yet accessible products across bodystyles Dedicated Fleet Mass Market EVs Aspirational SUVs Low TCO | Durable | Comfortable Practical | Built for India | Affordable Fun to Drive | Digital Devic
Slide 111: Strong actions to drive holistic market growth for EVs
We took strong actions to drive holistic market growth for EVs We expanded the consideration among customers by mitigating key barriers for adoption Pure-EV Architecture Dedicated EV Channel Charging Ecosystem Partnerships • Acti.ev Pure-EV architecture will underpin next • EV-exclusive stores to pr
Slide 112: Front-end reimagination initiatives helped deliver enhanced CX
Our front-end reimagination initiatives helped us deliver enhanced CX We strengthened the Tata Motors brand and enhanced our network Strengthened Network Reimagined Website Brand Premiumization Net Promoter Score 48 35 25 14 FY18 FY20 FY22 FY24 Sales and service network expanded with over Digital cu
Slide 113: We expanded our capacity by operationalizing Sanand 2 facility
We expanded our capacity by operationalizing Sanand 2 facility Our annual capacity is now 1mn+ in line with our growth aspirations Sanand 2 facility production commenced in record time within 12 months of acquisition • Sanand 2 facility provides us with annual capacity of 300k units, expandable to 4
Slide 114: We enhanced our profitability through key structural levers
We enhanced our profitability through key structural levers In Q4 FY24, TMPV delivered double digit EBITDA & TPEM recorded pre-PDE EBITDA breakeven Key Levers for Profitability Strong Structural Cost Reduction Delivery Operating Leverage Volume and Mix Richer Model and Trim Mix Commercial Reduction
Slide 115: The Indian auto industry is undergoing a transformation
Going forward, the Indian auto industry is undergoing a transformation Tata Motors will occupy the sweet spots of all of these industry transitions Indian Auto Industry to reach 6mn units by FY30 Proliferation of Emission-Friendly Vehicles, esp. EVs Growing Customer Preference for SUVs Shift in Cust
Slide 116: Key strategic pillars for TMPV & TPEM
We have identified key strategic pillars for TMPV & TPEM These strategic pillars will capitalize on industry trends and will drive growth for Tata Motors 1 Increase addressable market by introducing new nameplates 2 Strengthen multi-powertrain strategy to leverage industry powertrain shifts 3 Pro
Slide 117: Market share in our addressable market is 26%
1 We will achieve market share growth by leveraging new nameplates We will increase our addressable market with new nameplates in promising segments Currently, our product portfolio occupies We will increase our addressable market six sub-segments which represent 53% of TIV to 80% of TIV with new na
Slide 118: We will capitalize on the powertrain shifts in the industry
2 We will capitalize on the powertrain shifts in the industry We will strengthen our multi-powertrain strategy to maximize on growing powertrains Salience of emission-friendly powertrains We will continue to focus on strengthening our i.e. CNG & EVs to increase substantially CNG and EV MS with key i
Slide 119: We will target for 18%-20% market share
2 We will target for 18%-20% market share with our endowments We will grow faster than the industry leveraging new nameplates and powertrain shifts Powertrain shift towards Introduction of EVs & CNG 18-20% MS Powertrain New Nameplates shift towards EVs & CNG Introduction of 16% MS Curvv & Sierra 14%
Slide 120: We will proactively drive mainstreaming of EVs in India
3 We will proactively drive mainstreaming of EVs in India We will drive growth through holistic initiatives across product, channel and ecosystem Product Portfolio Wider EV product portfolio with higher range models & price parity Greater Reduced Accessibility Range Anxiety Making EVs Mainstream EV
Slide 121: We will expand our EV portfolio with diverse offerings
3 We will expand our EV portfolio with diverse offerings Leveraging Acti.ev & EMA, we will address key barriers in terms of range & technology New aspirational nameplates to grow EV market We will adopt a technology-led product evolution driven by insights from 3bn+ km of driving data Higher Range D
Slide 122: Acquisition price parity for EVs
3 We will strive towards acquisition price parity for EVs Prices of ICE and EV counterparts will converge due to industry developments Factors Affecting Effect on Price Effect on Price Prices of Vehicles of ICE Vehicles of Electric Vehicles More Stringent Emission Norms Declining Global Battery Pric
Slide 123: EV-exclusive channel
3 We will focus on developing our EV-exclusive channel We will expand to key markets to provide differentiated experience for EV customers We will be expanding our EV-exclusive channel in a phased manner • ~50 cities identified for activation of EV-exclusive in a phased manner over the next 24 month
Slide 124: Charging infrastructure growth
3 We will facilitate and drive charging infrastructure growth Open collaboration will be key to drive public chargers and community chargers We have established a mutually beneficial We will drive both public chargers & community collaboration with charging ecosystem partners chargers growth to addr
Slide 125: Synergies between EVs and Rooftop Solar
3 We will leverage synergies between EVs and Rooftop Solar (RTS) Synergy will drive increased EV adoption and accelerate our path to Net Zero We will cross-promote RTS and EVs for customers FY24 FY30 % of Grid 24%1 40% with RE % of Tata.ev users 10-15% 50% with RTS % of RE used for ~33% ~70% Tata EV
Slide 126: Synergies with Tata Group companies
3 We will continue to drive synergies with Tata Group companies Tata ecosystem synergies will enable advanced technologies, localization & cost benefits EMA platform sharing for the development of Avinya, Battery security and cost benefits, which will be a key accelerating our entry into the premium
Slide 127: Stay ahead of the curve in advanced technologies
4 We will stay ahead of the curve in terms of advanced technologies We have a robust roadmap to ensure pole position in terms of innovative features Safety Technology Powertrain Technology • Democratizing active safety • Efficiency improvement through elements e.g. ADAS, ESC 1.2L and 1.5L TGDi engin
Slide 128: We will enhance our margins through structural actions
5 We will enhance our margins through structural actions We will enhance the profitability of both PV and EV business • Operating leverage resulting from higher volumes & revenues across PV and EV with Scale Benefits higher levels of fixed cost utilization • Introduction of new nameplates will resul
Slide 129: Survive Revive Thrive
Going forward, we aspire to thrive purposefully in PV & EV Aspirations for our next phase of growth identified Survive Revive Thrive FY20 to FY22 FY22 to FY24 FY25 onwards • Reimagined portfolio with “New • Portfolio expansion with focus on • Continue to expand product portfolio to Forever“ multi-po
Slide 130: Thank You
TATA MOTORS Connecting Aspirations Thank You qe TATA
Slide 131: Expert Speak - Roadmap of India's E-mobility revolution
Sudhendu Sinha Expert Speak - Roadmap of Advisor, Niti Aayog India’s E-mobility revolution
Slide 132: Thank you for participating
TATA MOTORS qb TATA Connecting Aspirations Honoured with plantation of Ten Jackfruit saplings in Longleng District of Nagaland under Go Green Project Mr. Sudhendu Sinha | Thank you for participating in © Tata Motors India Investor Day June 2024
Slide 133: Panel Discussion - Mainstreaming EV adoption in India
Panel Discussion - Mainstreaming EV adoption in India Shailesh Chandra Tom Flack Arvind Goel Karthikeyan Palanisamy MD, TMPVL and TPEML CEO, Agratas Chairman, TACO Co-Founder and CEO, Zeon Charging
Slide 134: PV & EV Business Q&A session
PV & EV Business Q&A session Shailesh Chandra PB Balaji Dhiman Gupta MD, TMPVL and TPEML CFO, Tata Motors Group Vice President Finance, TMPVL and TPEML
Slide 135: Outlook and closing remarks
PB Balaji Outlook and closing remarks CFO, Tata Motors Group
Slide 136: Next phase: Shifting gears to realise our potential
Next phase: Shifting gears to realise our potential 136
Slide 137: In Summary
In Summary 1 Businesses are now self sustaining with disciplined capital allocation 2 Differentiated strategies of the businesses to continue; execution rigour to be stepped up Intense Product, Technology and Digital interventions at play; confident of sustaining strong 3 performance in coming years
Slide 138: Market beating growth with strong free cash flows
Business aims to deliver Market beating growth with strong free cash flows Area CV PV EV Volume growth well ahead of market Gradually increasing shares; Continued leadership Market Shares / Growth 16% market share by FY27 Market beating revenue growth Penetration of EV – 30%+ by FY30 18-20% in anoth
Slide 139: Thank You
TATA MOTORS Connecting Aspirations Thank You qe TATA