Tata Motors: H1 To Be More Challenging Vs H2; 2-4% Of Revenue Will Be Used For Capex | CNBC TV18

The Motors also held at 79 Annual General Meeting yesterday. In conversation with CNBC TV 18, Shailesh Chandra, the Managing Director of Passenger Vehicles and Electric Mobility, spoke about the comprehensive game plan and his expectations from the passenger vehicles industry. Listen it. I think the competition is going to be really good for the UV industry because there will be a lot of buzz in the market about electric vehicles. There will be combined marketing spend. We have expanded our reach to multiple places not only in terms of our sales outlet but also service. This year we are going to launch Core VV as well as Harrier EV and subsequently you'll have Sierra EV and many other products which are going to come. So I think we have a very comprehensive plan. Financial year 22 and 23 were very strong growth, double digit growth for the industry. We saw moderation in the financial year 524 where it came down to roughly 8 1/2 percent. Typically the secular growth rate for PV industry is in between 6 to 7%. We believe that this year because of the last three years of very strong growth, there will be a moderation this year. This can be therefore anywhere between 3:00 to 5% growth rate. That's how I see PV industry. It will be more skewed towards the H2. H1 will be slightly more challenging as compared to H2. Post monsoon, things should be better and post the festive season. So that's how I see the industry. And Girish Wagh, the Executive director of Tata Motors, also spoke about the CapEx plans in industry growth and the expectations from the Union Budget. In Tata Motors commercial vehicle business, we have given a guidance of around 2 to 4% of the revenue will be our capital expenditure. Over the years, the amount that we have been spending on advanced technologies addressing the mega trends of autonomous connected electrification software, digital has been consistently increasing. And I think in fact this year more than 40% of our capital expenditure will actually go on these technologies and developing our products and services in alignment with these Ted trends. Vehicles is concerned, the governments push on the infrastructure has been very, very beneficial. So we expect the government to continue that and that's the stated intent also. Secondly, I think the government has also been very supportive on electrification with both demand and supply side incentives whether it is fame PLIGST. So we expect those also to continue. And CFO PB Balaji spoke about how the company was planning to reach and maintain a 15% EBIT margin. In the Jaguar Land Rover business. The most pivotal loan is a strategy that we are following because that business is pivoting away from what it used to be to a premium luxury position. A premium luxury OEM by design needs to be a 15% plus kind of an EBIT margin. So therefore that is the starting point of the conversation to do so. The key one that we need to get right will be the portfolio, then of course our engagement of the customer so that we are able to give that discerning clientele extremely curated experiences similar to what we did to the Range Rover House, for instance. And at the same time, we also need to ensure product quality picks up so that we are able to meet those aspirational needs. So that is the combination of factors out there. OK, that's the word coming in from the top leadership from Tata Motors we'll.