Tata Motors aims to bring debt down to near-zero levels

India
Published:  28 August, 2020

Addressing the shareholders during the 75th annual general meeting, N Chandrasekaran, Chairman, Tata Motors, said the owner of Jaguar Land Rover (JLR) intends to significantly bring down the debt and come to near-zero debt levels in the next three years.

During the virtual meeting on August 25, Chandrasekaran said that steps have already been taken by Tata Motors to reduce its debt of INR480 billion (US$6.4 billion) and bring it down to zero within the next three years, and this includes making the company cash flow positive by fiscal 2022. He said the automotive group would also look to unlock investment in various non-core businesses and that it will focus on increasing sales and service for both JLR and the domestic passenger vehicle business in the next two to three years. According to Chandrasekaran, the passenger vehicle business, which is now being hived off as a separate legal entity, will turn cash positive by fiscal 2023. The company's efforts to save costs will include plans to save roughly £2.5 billion (US$3.32 billion) in costs at the company's British subsidiary, Jaguar Land Rover.

Sources: Bloomberg Quint/Times of India