Tata Motors, one of the leading carmakers, has announced its financial results for FY2024. The company reported record revenues of INR 437,928 crore (+26.6%) and net profit of INR 31,807 crore, as against INR 29,117 crore last year.

In Q4 FY2024, Tata Motors says it was able to achieve a strong performance with revenue of INR 119,987 crore (up 13.3%) with all three auto businesses delivering a strong performance. The net profit came at INR 17,529 crore, as against INR 12,033 crore for the same period last year. It was also able to reduce its net automotive debt reduced to around INR 16,000 crore. 

Going forward, the carmaker says it remains cautiously optimistic on domestic demand over the full year and expect H1 to be relatively weaker.​ The premium luxury segment demand is likely to remain resilient despite emerging concerns on overall demand. ​Despite this, it is confident of delivering a strong performance in FY2025.

PB Balaji, Group CFO, Tata Motors said: “It is pleasing to report the FY2024 results during which Tata Motors Group delivered its highest ever revenues, profits, and free cash flows. The India business is now debt free, and we are on track to become net automotive debt free on a consolidated basis in FY2025. The businesses are executing well on their distinct strategies and therefore, we are confident of sustaining this strong performance in the coming years.”

PV outlook

Coming to the outlook for the passenger vehicle segment, it sees the demand to remain strong, although the high base effect, coupled with extraneous factors elections and heat wave among others may keep the growth rate moderate. It will continue to focus on improving retail sales to sustain double digit EBITDA margins and positive free cash flows for the PV business. Furthermore, it will continue to proactively drive EV penetration through new product launches and ecosystem development and improve profitability. 

Shailesh Chandra, MD, Tata Motors Passenger Vehicle and Tata Passenger Electric Mobility said: “Passenger vehicle sales in India set a record in FY2024 with over 4.2 million units sold, driven by SUVs (50% of overall sales) and emission-friendly powertrains. Tata Motors recorded its third consecutive year of highest sales volumes with 6% growth in wholesales and 10% in retail sales over FY2023. Our multi-powertrain approach and sharp focus on green technologies increased the penetration of CNG and electric vehicles to 29% in the overall portfolio. We sold 73.8K EVs during the year (up 48% vs FY23) and crossed milestone of 150,000 cumulative EV production. Overall, the business recorded its highest-ever turnover with annual volumes of 573.5K units, growing by 6.0% over FY23, and recorded highest ever profits of INR 1.4K crore.”

CV outlook

Tata Motors states that the last quarter of FY2024, saw domestic wholesale CV volumes of around 104,600 units, which was lower 7 percent YoY on account of increased pre-buy in Q4 FY2023 on the back of BS6 Phase II transition. Exports at around 4,500 units grew by 13% YoY.  However, revenues improved by 1.6% yoy to around INR 21,600 crore on account of improved pricing and lower VME’s. EBITDA and EBIT margins of 12% and 9.6%, respectively were delivered. For the full year, while overall volumes declined by 4%, HCV volumes increased by 5%. 

But the demand for commercial vehicles in India is expected to be strong. Tata Motors states with promising GDP growth outlook, incentives from government to improve productivity in both manufacturing and agriculture sectors, and continuing focus on infra, demand for CV’s is expected to improve from H2 FY2025. It remains cautiously optimistic about domestic demand while keeping a close watch on geopolitical developments, interest rates, fuel prices and inflation. 

Girish Wagh, Executive Director Tata Motors said: “The Indian CV industry grew by a modest 2% in volumes during FY2024, impacted by a high base effect of FY2023, elections held across 5 states and the announcement of general elections. At Tata Motors, we strengthened our portfolio with the introduction of new passenger and cargo mobility solutions, stepped-up the thrust on digitalisation, enriched customer engagement and experience with stronger partnering and made holistic progress on our sustainability agenda. Our sharp focus on profitable growth resulted in the CV business recording its highest-ever revenues of INR 78,790 crore and profits of INR 6,102 crore in FY2024. Going forward, we will intensify our efforts to grow market share, profitably and consistently, in every business segment by delivering more value to customers with innovative products, smarter services and holistic mobility solutions.”

The European Union voted in favour of imposing extra tariffs on China-made EVs by up to 45 percent on 4 October 2024. Threatening a broader trade conflict with a country that has already vowed to protect its companies and is considered as the factory of the world, the move has been criticised by the auto industry and various EU member states.

With growing demand for EU and China resolving their differences through dialogue, the China Council for the Promotion of International Trade is known to express that it is opposed to be the move.

With the technical teams from China and the EU set to resume talks on 7 October 2024, the situation in EU as far as the auto OEMs like Volkswagen Group, Stellantis and BMW Group are concerned, there have been instances of profit warnings.  

Weak demand, rising costs, global competition, trade wars, geopolitical situations, subsidies and company-specific factors are among the reasons being underlined for the profit warnings by European automakers.

Receiving necessary support with 10 members backing the tariffs, 12 abstaining and five members – including Germany – voting against, the European Union, claim sources aware of the development, has been urged by the auto industry to negotiate with China for better terms and conditions rather than to reach the level were a trader war looks eminent.

Present in the China market for a decade or more, many European automakers seem to fear if the tariffs imposed on Chinese EVs will lead to negative consequences in that market for them.

Volkswagen is known to have said that the tariffs are ‘the wrong approach’. There is a need for the two sides to negotiate and find the middle way, mentioned an industry source in Germany in response to the tariffs by EU.

Image courtesy: EmDee (Wikipedia)

The Association of Indian Forging Industry (AIFI), the apex body representing the forging industry in the country has announced its new officer bearers for 2024-26. 

The committee has elected Yash Munot as the new President of AIFI, while S.  Ravishankar was elected as the Vice-President.

Munot, who succeeds Vikas Bajaj, had previously served as Vice-President of AIFI from 2020 to 2024, is now also the youngest to be appointed as the President in the organisation's history. 

He currently serves as the CEO at Varsha Forgings and the Managing Director at KCTR Varsha Automotive. Munot begun his journey in the forging industry in 2005 joining his family business - Varsha Forgings. He was also instrumental in organising major industry events like IFC 2011, Forgetech  India 2016, Asia Forge 2019 and ForgeTech India 2023. He has served as the Western Region Chairman from 2018 to 2020. 

“The forging sector in India is at a pivotal juncture, with tremendous opportunities for innovation and growth. Our focus will be on fostering collaboration within the industry, driving technological advancements and promoting sustainable practices. I am committed to working closely with all stakeholders to ensure that our industry not only thrives domestically but also strengthens and enhances its global footprint. Together, we will build on the strong foundation laid by my predecessors and strive for excellence in every aspect of our work," said Munot.

S Ravishankar added, “I will strive for advancing our industry’s progress and tackling the challenges presented by a rapidly changing global landscape. Our priorities will include boosting competitiveness, driving innovation and equipping our members for future opportunities. I look forward to embracing the exciting prospects ahead and contributing to AIFI’s continued success during this transformative era”

He (Ravishankar) currently serves as the MD at Super Auto Forge and has over 25 years of experience in the auto component manufacturing industry. He is a Manufacturing Engineer with Bachelors degree from Annamalai University and Masters degree from The Ohio State University.

It was in 1997, after working in Detroit for two years, Ravishankar returned to India and joined his family business at Super Auto Forge. He has been instrumental in developing the international business of SAF and led the initiative to establish marketing offices in Detroit in 2001, followed by Belgium in 2011. He has been the Chairman of Indo American Chamber of Commerce for the period 2008 – 2009 – Tamil Nadu Branch and currently serves on the Southern Regional Committee of ACMA since 2021.

Automechanika Frankfurt has cemented its position as the leading international trade fair for the automotive industry with the successful conclusion of Automechanika Frankfurt 2024. 

The slogan of this year’s Automechanika was ‘Driving Transformation’, with topics such as electrification, vehicle connectivity, driver assistance systems and digitalisation taking the centre stage. The fair was held from 10 to 14 September 2024 and saw 4,200 companies from 80 countries displaying their products and solutions for retail, workshops and industry. Spread over an area of 320,000 square metres and 26 hall levels, the event witnessed a total of 108,000 visitors from 172 countries.

Visitors had the chance to see cars with alternative drive systems up close, such as electric, hydrogen, and hybrid models, and even take a ride in the Future Mobility Park and the related expert forum Innovation4Mobility. For even more highlights, there were brand-new event types available, such as an exhilarating rally. Ninety-four percent of attendees, 70 percent of whom were foreign visitors, expressed satisfaction with the event, not just with the trade fair's offerings but also with their aims being met.

An emphasis on sustainable technologies, products and solutions was highlighted at Automechanika this year. Several talks on remanufacturing and circular economy tactics were held on the stage in the new Sustainability Court in Hall 5.0. This year also saw the opening of ‘Ambition’, a dedicated Gen Z section in Hall 3.1 with live acts, panel discussions and succinct, fascinating presentations to pique the interest of young people in the automotive professions. This action was taken as a result of the well-known lack of qualified workers in the automobile sector.

Detlef Braun, Member of the Executive Board of Messe Frankfurt, commented, “Even in the midst of the digital transformation, the industry once again demonstrated its wealth of innovation, providing countless highlights over the course of the five-day event. Together with our exhibitors, we were able to find the right players to present the most important topics – including alternative drive systems, sustainability and the use of AI and robotics in the automotive aftermarket – on the stages and in the exhibition halls. We are also delighted by growing demand from both German and international visitors.”

Michael Johannes, Vice President Mobility & Logistics, Messe Frankfurt, said “Never before has Automechanika in Frankfurt had a supporting programme and range of events like this. Our roster of presentations and practical workshops covered a wide range of topics, including bodywork and paintwork, electric vehicles, commercial vehicles, caravan repair, 3D printing, detailing and much else besides. These were very well received by the professionals, and students and pupils took advantage of the opportunities on offer to find out for themselves what some of the automotive trades and professions are like. One of this year’s new additions was a programme and area devoted especially to Generation Z. We wanted to draw their attention to the professional opportunities that are available in the fascinating world of the automotive industry – and we were very successful.”

Castrol India, a leading lubricant manufacturer, has announced that it has achieved a significant sustainability milestone by increasing recycled content in its high-density polyethylene (HDPE) plastic bottles to 50 percent. 

With this, the company aims to achieve 2,600 metric tonnes of annual recycled plastic usage in its packaging portfolio by 2024.

The step builds upon its previous actions to help make its packaging more sustainable, including the commercialisation of 100 percent recycled bottles for POWER1 range in 2022 and the incorporation of 30 percent recycled content across its entire bottle packaging in 2023.

This latest change aligns seamlessly with Castrol’s global PATH360 strategy, which aims to reduce its plastic footprint by half by 2030.

Sandeep Sangwan, MD, Castrol India said, “We are proud to announce this milestone in our journey towards more sustainable packaging. This achievement is a testament to the hard work and dedication of our team, who have overcome challenges to develop packaging solutions that meet our high standards for quality and aesthetics.”

In addition to packaging, Castrol India aims to have more sustainable manufacturing practices. The company’s production facilities utilise energy-efficient technologies and renewable energy sources to seek to reduce its operational greenhouse gas emissions.