Tata Motors Ltd

It is my privilege to present the Integrated Annual Report of Tata Motors Limited for FY25, marking the 80^th year of your Company's journey.

This was the year we lost Mr. Ratan Tata, whose vision made Tata Motors what it is today. We remain inspired by his contributions.

The year 2025 began with optimism, underpinned by expectations of macroeconomic stability and recovery with global growth, falling inflation, and tailwinds from falling interest rates. However, this macro narrative shifted with rising concerns around global g and inflation as policy rowth uncertainty rose sharply with dramatic shifts in trade policy. Amid trade uncertainties, global growth is expected to slow to 2.3% in 2025 from 2.8% in 2024.

In this challenging landscape, the long term s shifts that I have tructural referred to earlier, transition to cleaner and greener energy, deepening digital transformation, and reconfiguration of global supply chains, continue to move forward.

Across all these shifts, one stands apart: the potential of Intelligence (AI)/Generative AI

(Gen AI). This is not merely another technological shift; it is a civilisational one. AI is swiftly becoming as fundamental to human progress as electricity once was, reshaping our world in ways we are only beginning to comprehend. It's being supercharged by parallel progress in semiconductors, cloud computing, quantum technologies, robotics, energy innovations and innovations in energy storage. What makes this moment uniquely significant is its simultaneity. Unlike previous technological revolutions that arrived sequentially across the globe, AI/

Gen AI is emerging simultaneously everywhere and impacting the pace of change of other technologies.

For Tata Motors, AI/Gen AI presents huge opportunities in all aspects of the business, including how vehicles are conceived, how they are built and how they operate on the road. AI in vehicles is improving safety, increasing fuel efficiency, a providing drivers with nd enhanced connectivity features. This is the n cew in which we craft our ontext strategies for the future.

In this context, I am pleased to share that your Company made steady progress in FY25, navigating a complex operating environment with agility and focus, enabling consistent progress across our portfolio while reinforcing the foundations of a resilient, c centric, and ustomer future ready organisation.

While performance varied across segments, each of our automotive businesses — Commercial Vehicles (CV), Passenger Vehicles (PV), and Jaguar Land Rover (JLR), remained aligned to their strategic priorities and demonstrated tangible p across key areas. rogress

Your Company successfully addressed several challenges during the year, including geopolitical turbulence, challenges with global supply chains, and a fluctuating demand for autos in certain markets.

On a consolidated basis, the business delivered several key milestones, including record high revenue of I4,39,695 crore, EBITDA of I57,649 crore, and record high PBT (before exceptional items) of I34,330 crore leading to the group becoming debt free this year.

The Board has recommended a final dividend of I6/ p o er share for rdinary FY25, su to your approval. bject

I would now like to outline the opportunities ahead and the key imperatives for each of our businesses.

Tata Motors Commercial Vehicles has successfully restructured the business into eight distinct verticals, enhancing strategic focus and alignment and enabling sharper performance delivery. Despite industry headwinds, the business gained market share and improved realisations in both Trucks and Buses. The performance of Small Commercial Vehicles and Pickups is still n a ot d tlevels, and we are esired working to address it with speed.

The opportunities. Non Vehicularsegmentcontinued its strong momentum, driven by growth in spares, services, and emerging verticals. Initiatives to enhance dealer profitability have yielded tangible results, reflected in improved satisfaction scores across the n etwork.

Our Electric Mobility portfolio scaled meaningfully, with Smart City Mobility deploying over 3,600 electric buses while maintaining high uptime. The planned integration with the CV

Passenger business is expected to unlock synergies and drive further expansion and innovation in public and private mobility solutions.

Digital platforms such as Fleet Edge and Fleet Verse continue to grow in scale and impact, delivering measurable value through connected services and customer centric offerings.

With a favourable macroeconomic environment, rising infrastructure investments, and strong replacement demand, the commercial vehicle industry is poised for sustained growth. Supported by a track record of operational and financial excellence, Tata Motors is well positioned to capitaliseonemerging

The Indian passenger vehicle industry entered a phase of consolidation following years of high growth, with steady demand tempered by macroeconomic factors.

SUVs and CNG vehicles helped achieve key milestones in cumulative

PV and EV sales. Driven by a robust multi powertrain strategy and a deep rooted commitment to sustainable mobility, we grew the share of CNG and electric vehicles to 36% of our overall portfolio.

We commenced work on our new manufacturing facility in Tamil Nadu, laying the f for future oundation growth. At the same time, we scaled our nationwide infrastructure and retail footprint to accelerate the adoption of electric vehicles. We also elevated the e to end customer experience nd through improved digital, retail, and after sales service interventions.

As we grow, we are also embedding greater automation and AI into our operations, enhancing agility and efficiency while shaping a future ready manufacturing ecosystem.

JLR delivered a robust financial performance and strong operational progress in FY25.

From a financial results perspective, the Company delivered consolidated revenues of ?29 billion, like the previous year.

The Company achieved its aim of reaching an adjusted EBIT margin of 8.5% and recorded a positive net cash position at the close of the financial year.

JLR continues to realise its Reimagine strategy this year, completing works to transform its UK plants for electric vehicle p roduction. The ambition is to have electric versions of all JLR's brands by the end of the decade and be carbon net zero by 2039.

In alignment with the Tata Group's

‘Aalingana' i which focuses nitiative, on achieving net zero emissions, fostering circular economies, and preserving biodiversity, your Company is embedding and actively advancing these principles across its operations.

We have s ambitious targets: et achieving net zero greenhouse gas emissions by 2039 for JLR, 2040 for our passenger vehicles and by 2045 for commercial vehicles, supported by interim science based targets and a commitment to sourcing 100% renewable electricity by 2030.

The T ATVA f emphasises ramework circularity through optimised use of materials, energy, and product lifecycles. With Re.Wi.Re (Recycle with Respect), we are enabling responsible vehicle decommissioning and recycling, c ontributing to a sustainable automotive lifecycle. Through our collaborative platform called ‘AIKYAM', suppliers are being engaged to adopt sustainable practices across the value chain. Additionally, flagship biodiversity projects, su by active employee pported and community participation, are conserving and promoting natural ecosystems.

Through these concerted actions,

Tata Motors is leading the automotive industry's transition towards sustainable and responsible mobility solutions.

To empower each business to pursue its distinct vision, the demerger of Tata Motors into two listed entities

Commercial Vehicles and Passenger Vehicles (including EV and JLR) — is progressing as planned. Enabling corporate actions to streamline the capital structure of the Company and enhance i operational focus gathered ts pace during the year with the successful delisting of its DVRs and the merger of Tata Motors Finance Ltd. with Tata Capital Ltd. In early FY26, your Company's shareholders approved the demerger which is expected to be e ffective during the second half of 2025, with shareholders receiving equivalent shares in both

The proposed demerger, will bring greater strategic clarity and agility, enabling a more focused approach to execution and value creation, delivering superior experiences for customers, rewarding careers for employees, and long term r for shareholders. eturns

We step into FY26 with confidence in our strategy, strength in our execution, and belief in our people. We remain vigilant to worldwide volatility, including the impact of changes in global trade conditions and the varying degrees of adoption of electric vehicles across different markets and evolving technologies, to accelerate our production plans while delivering value to our customers. I remain. confident in the future of our brands and the resilience of our business. Our focus remains on delivering consistent growth, enriching customer experience, and innovating for a cleaner, safer, and more connected mobility future.

The commitment of our people and our partners during the year cannot be overstated. They continued to deliver the highest standards of care and innovation for our clients, as well as for our communities and the environment. I would like to thank our teams for their efforts and our partners for their support.

On behalf of the Board, I thank you for your continued trust and partnership.

Together, we are moving purposefully towards a better tomorrow.