Tata Motors’ electric vehicle business posted a positive operating margin before depreciation and amortisation (Ebitda margin) last fiscal year, ranking among a handful of EV makers globally to achieve this, the Mumbai-based auto maker claimed in its latest annual report.
The improved performance was supported by increased localisation, aggressive cost cuts, and productivity linked incentive (PLI) benefits, with the latter totalling ₹527 crore. It Includes PLI incentives of ₹385 crore for the financial year 2025 and payment of ₹142 crore as incentives for the financial year 2024.
This was even as Tata Motors’ EV sales declined while its market share slipped amid heightened competition from companies such as MG Motor and Mahindra & Mahindra.
India’s EV market leader with six models including Tiago and Nexon saw revenue from the EV business drop to ₹8,187 crore in FY25 from ₹9,285 crore in the year before. Its retail market share fell to 55.4per cent from 73.1per cent during the period. Still, Ebitda margin rose 8.3 percentage points to 1.2per cent from a negative 7.1per cent .
“In the EV segment, we became one of the few global manufacturers to achieve positive EBITDA, on the back of a higher level of localisation, aggressive cost reduction, and securing PLI benefits,” the company said in the FY25 annual report.
Tata Motors’ other income last fiscal included government incentives that rose sharply to ₹3,458 crore from ₹2,971 crore in the year before. This included exports and other incentives of ₹1,021 crore and ₹617 crore for FY25 and FY24 respectively, and ₹2,438 crore and ₹2,354 crore for FY25 and FY24, respectively received by foreign subsidiaries on tax credit on qualifying expenditure for research and development.
Meanwhile, it was a year of record foreign exchange earnings for the company’s UK unit Jaguar Land Rover. The luxury carmaker recorded an exchange gain of ₹981 crore in FY25, compared to ₹190 crore in FY24 on account of foreign exchange and fair value adjustments, according to the annual report.
