Tata Motors Passenger Vehicles shares surged nearly 13% following Macquarie's upgrade to 'outperform' from 'neutral' and increased price target to ₹381 from ₹367. As per CNBC TV18, the brokerage cited favourable SUV launch cycle benefits and expects JLR margins to gradually improve in ensuing quarters. The stock was trading 0.4% up at ₹339.3 at 12:45 pm on Monday, reflecting strong market confidence in the company's growth trajectory. Of the 32 analysts covering the stock, 13 have 'buy' ratings, 10 have 'hold' ratings and 9 have 'sell' ratings, indicating positive analyst sentiment.
Tata Group has set an ambitious target to grow its automotive business into a $100 billion enterprise by FY31, as announced by Chairman N Chandrasekaran at the Tata Motors Passenger Vehicles Annual General Meeting. The conglomerate's growth plans come following the demerger of Tata Motors' passenger and commercial vehicle businesses, with the group investing across electrification, manufacturing capacity, technology and new products to achieve this milestone. According to Chandrasekaran, Tata Motors Passenger Vehicles and Jaguar Land Rover (JLR) together are targeting $60 billion in revenue over the next five years, with JLR contributing about $45-50 billion and Tata Motors domestic business contributing about $15 billion. The combined profit from the passenger vehicle business and JLR is expected to exceed $5 billion.
The company reported higher production and domestic sales across most of its PV portfolio in the June quarter, as per data submitted to the Society of Indian Automobile Manufacturers (SIAM). Production of Punch and Nexon units rose to 11.77 lakh in Q1 from 80,001 units in the year-ago period, while domestic sales increased to 11.58 lakh units from 76,230 units. The automaker is aiming for annual sales of more than 1.2 million vehicles by FY31, nearly double its FY26 domestic sales of approximately 6.42 lakh units, which was already the firm's highest-ever annual figure. The company is also targeting a 20% market share, up from 14.2% in the most recent quarter, and a double-digit EBITDA margin.
The group has outlined substantial capital expenditure commitments with ₹40,000 crore allocated for domestic operations and approximately £20 billion for Jaguar Land Rover (JLR). As per the latest reports, Tata Motors' domestic business plans to invest about ₹4 trillion ($41.9 billion) over the next five years, while its UK-based luxury car making unit will spend around 20 billion euros ($26.8 billion). These investments will fund new products, electrification, manufacturing capacity and technology initiatives across the four automotive businesses following the demerger.
According to the latest updates, Tata's closely held battery maker Agratas Ltd. will begin production in calendar 2027, supplying both JLR and Tata Motors as part of the group's strategy to localize battery manufacturing. This timeline represents a significant acceleration from previous projections, with Agratas currently building a 20 GWh plant in Gujarat's Sanand and a 40 GWh plant in Somerset, UK. The battery unit has already made substantial payments of over £40 million (₹480 crore) to AESC Apollo Holding across fiscal years 2025 and 2026 for its electric vehicle battery technology partnership.
Chandrasekaran emphasized the group's focus on building a trusted, aspirational, globally competitive mobility brand that connects meaningfully with customers of tomorrow. The demerger of passenger and commercial vehicle businesses into two separately listed entities represents a very decisive step towards building a differentiated and future-ready mobility enterprise with strong presence in India and global footprint through Tata Motors and Jaguar Land Rover. The strategy includes significant investments in digital technologies and AI for future operations, positioning the group for sustainable growth in the evolving automotive landscape while maintaining its leadership in both domestic and international markets.
