Our Terms & Conditions | Our Privacy Policy
Alongside, the fiscal also saw median salary hikes for its senior-most executives at just 3% compared to 15% in FY24, according to data from its annual report of FY2024-25. The twin developments happened in the backdrop of falling demand for its cars, trucks and buses in the fiscal.
The total employee count of the country’s third-largest automaker, excluding employees of its UK-based subsidiary Jaguar Land Rover, fell from 60,113 employees, including workers, in FY24 to 58,442 employees in FY25, the first such fall since 2019-20. In FY24, Tata Motors had increased its workforce by 6%.
Much of the fall was due to the decline of non-managerial personnel to 45,486 during the last fiscal from 47,495 in the year ago period. A Tata Motors spokesperson clarified that the fall in employee count was not reflective of the business environment.
“The change in non-managerial personnel is a year-end position and not representative of the underlying business fundamentals,” the spokesperson said, responding to Mint’s queries.
Meanwhile, one of the exceptions to the 3% median salary hike for senior employees was Girish Wagh, the company’s executive director, who received a 22% increase in his salary to ₹8.53 crore. To be sure, the median salary hike for all employees did see a rise–from 6.1% in FY24 to 6.5% in FY25.
“The salary increases for directors and KMPs reflect the KPI (key performance indicator) delivery and a high base effect,” a company spokesperson said.
The company recorded muted 1.3% growth in consolidated revenue to ₹4.39 trillion in FY25, as sales fell globally. Net profit for the year fell 11% to ₹28,100 crore, from ₹31,800 crore in FY24.
The passenger vehicle division of Tata Motors recorded a 7.5% decline in revenue to ₹48,445 crore in FY25 amid a 3% fall in total sales to 556,263 cars. Similarly, the commercial vehicle segment also recorded a 4.7% fall in revenue to ₹75,053 crore as sales fell 5% to 358,570 vehicles.
Broader industry trend
These developments at Tata Motors raise questions about the health of the wider auto industry. The overall market for passenger vehicles (PVs–including cars and SUVs) grew just 2% in the previous financial year to 4.3 million units. In the current fiscal, industry expectations peg growth at 1-2%.
“Hiring in the auto sector is seeing some slowdown, mostly because of lower sales of regular cars and two-wheelers, although commercial vehicles are steady and electric vehicles continue to grow,” said Neeti Sharma, chief executive at TeamLease Digital. “Jobs in traditional areas like manufacturing, sales, and general IT are fewer.”
As per data from Federation of Automobile Dealers Associations, commercial vehicle sales in FY25 was nearly flat at 1 million units while electric passenger vehicle sales grew 17% to 107,645 units in the same period.
Tata Motors was not alone in recording a decline in sales. India’s No.2 automaker Hyundai Motor India Ltd also recorded a 3% decline in sales, with domestic sales falling to 599,000 from 614,000 in FY24. To be sure, market leader Maruti Suzuki India Ltd saw domestic market growth at 3% in FY25 to 1.9 million units, compared to 9% growth in FY24.
“Unless something changes, the domestic market will remain muted,” said R.C. Bhargava, chairman of Maruti Suzuki India Ltd, post declaration of the firm’s Q4 results on 25 April. “In this current year, sales of small cars have declined by about 9%. If there is such a decline in the sales of cars that can be afforded by 88% of people earning, how can we expect growth?”
Natarajan Chandrasekaran, chairman of Tata Motors’ board, said in a message to shareholders: “The Indian passenger vehicle industry entered a phase of consolidation following years of high growth, with steady demand tempered by macroeconomic factors.”
Can Tata Motors’ numbers recover?
Analysts remain divided on whether Tata Motors’ growth in revenue and profits will bounce back.
“Refresh launches of Altroz and Tiago (launched in Q4) will help Tata Motors regain lost market share in hatches, while the launch of Sierra ICE and EV and Harrier EV may strengthen UV share,” Jay Kale of Elara Capital wrote in a 14 May note.
However, a key factor to watch for will be whether the demand for its overall products picks up in a slow car market. “In India, both CV and PV businesses are seeing moderation in demand. Given these headwinds, we have lowered our earnings estimates for Tata Motors by 12%/5% over FY26/FY27,” Aniket Mhatre of Motilal Oswal Financial Services wrote in a 14 May note.
In 2025, Tata Motors share price has fallen by 2.7% as against a 2.63% rise in Nifty Auto.
Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.
Aggregated From –
Comments are closed.