Tata Motors Sees Festive Bookings Surge Despite Jaguar Land Rover Challenges

Tata Motors Ltd presented a bifurcated sales outlook on Monday, with its luxury subsidiary Jaguar Land Rover (JLR) dragging down an otherwise robust performance in the Indian market. During analyst meetings, the company highlighted a recent cyberattack on JLR as a major disruptor, underscoring vulnerabilities in global automotive supply chains. The incident, which struck on August 31, compromised critical database and inventory systems, halting production across JLR's facilities.

While manufacturing is resuming in phases, executives cautioned that demand remains subdued in key regions like Europe, China, and the United States, potentially tempering overall group revenues in the near term. This setback comes as Tata Motors navigates a competitive luxury segment, where JLR contributes over 70% of the parent company's consolidated revenue, according to fiscal 2024 filings.

In contrast, domestic operations painted a brighter picture, fuelled by festive season momentum. Tata Motors reported booking growth of 25-30% from September 5 through Navratri, outpacing the industry's average of 20%. This surge reflects strong consumer interest in passenger vehicles (PVs) and commercial vehicles (CVs), bolstered by seasonal promotions and economic recovery signals. For the second half of fiscal 2025, the company anticipates high single-digit growth in both segments, following a flat first half.

Specifically, PV sales are projected at 7-8% growth in the October-December quarter, though full-year expansion may stay below 5%. To sustain this trajectory, Tata Motors plans elevated discounts during the festive period, aiming to capture market share amid rising disposable incomes and urban mobility demands.

The commercial vehicle division also signals optimism, with the broader industry poised for double-digit growth in the second half. Tata Motors has revised its long-term outlook, upgrading the compound annual growth rate (CAGR) for the CV sector to 6-8% through fiscal 2030, up from a prior estimate of 5-7%. This adjustment aligns with infrastructure investments under India's National Logistics Policy and a rebound in goods transport. Management emphasised that potential GST rate cuts on vehicles could further stimulate PV demand, providing a tailwind for affordable models like the Nexon and Punch, which have driven recent volume gains.

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Strategically, Tata Motors is diversifying through its July acquisition of Italian truckmaker Iveco Group—excluding its defence arm—for 3.8 billion euros (about Rs 38,240 crore). The deal, funded initially via a bridge facility, is expected to boost earnings per share from the outset and deliver substantial accretion within two years by enhancing CV capabilities in Europe.

To refinance, the company intends to raise around one billion euros (Rs 10,000 crore) through equity over the next 12-18 months. As Tata Motors balances these global challenges with domestic vigour, investors will watch how JLR's recovery influences third-quarter results, set for release in January 2026.

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