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The next few years will be decisive for Tata Motors and the company needs to transform itself to be relevant in the world of future mobility by forming partnerships, developing new solutions and optimising investment, according to its Chairman N Chandrasekaran.
In his address to shareholders in the company’s Annual Report for 2018-19, he also reiterated that transition to electric mobility needs to be well planned, with the government and the industry working together to ensure the development of an ecosystem. Incentives have to be provided and sustainability goals achieved, he added.
Cost cuts at JLR
Jaguar Land Rover (JLR), which has been facing challenges the past year, is taking steps to cut costs and is actively looking at partnerships while taking a calibrated approach towards future investment in the product portfolio, he said.
“The next few years are going to be decisive for our company. We have to focus on operational excellence to deliver positive cashflows while making the right investments to be prepared for the future,” Chandrasekaran said.
“We need to transform ourselves to be relevant in the world of future mobility. This will require us to form partnerships, develop mobility solutions and optimise our investment in the process.”
On electric vehicles, he said: “Your company’s strong belief is that this is a necessary initiative for India,” he said, adding: “However, this transition has to be well planned.”
On JLR, he said from an operational performance perspective, the last 12 months have been challenging for the company. “These have resulted in the business reporting a revenue decline this year and an operating loss,” he said, adding JLR faced headwinds from external factors, including slowdown of sales in China and Europe along with internal factors of high fixed cost structures, dealer network profitability and high investment leading to cash outflows.
“The company is actively looking at partnerships and prioritising its investments while ensuring that it is not compromising its future. JLR is committed to deliver cost and cash improvements,” he said.
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