Chandra: Tata, JLR should be ‘more agile’
MUMBAI: Amidst stronger headwinds in the global economy, Tata Sons chairman N Chandrasekaran has called for Tata Motors Ltd and its British subsidiary Jaguar Land Rover (JLR) Automotive Plc to be “more agile than ever” and work towards being “future ready”.
“Some of the key operating markets for the group are faced with diverse market dynamics requiring specific interventions to ensure sustainable profitable growth,” he said in a letter to shareholders in Tata Motors’ FY18 annual report.
In the letter, Chandrasekaran cited factors such as market cyclicality and muted near-term demand in the US, in addition to uncertainties in the UK and Europe over Brexit and taxation on diesel cars, as forming the “diverse market dynamics” for JLR. To address these headwinds, the UK’S largest auto- maker will “focus on optimization, drive operating leverage and manage capital spends prudently”, Chandrasekaran said.
JLR is set to spend at least £4.5 billion (around ₹40,520 crore), or about 15% of its FY19 revenue, in capital expenditure (capex) over three years, starting this fiscal. If this is to happen, it would be the highest cumulative capex figure for the maker of the Range Rover and F-PACE SUVS.
The announcement came at a time when margins are at their worst, failing to fire up the Tata Motors stock, reported on July 2.
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