The EV -arm of Tata Motors becomes Ebitda positive despite the dip in sales and market share – Times of India

TATA Motors’ Electric Vehicle (EV) Business achieved a positive operational margin before depreciation and amortization (EBITDA) in the tax year 2024-25, where it was placed worldwide among a small group of EV manufacturers to reach this milestone, the company said in the last annual report.The change in Marges even came when the EV sales fell and the market share fell due to the intensifying competition from rivals such as MG Motor and Mahindra & Mahindra.The leading EV player of India per volume, Tata Motors reported that the turnover from his EV division fell to RS 8.187 Crore in FY25, against RS 9.285 Crore in FY24. The retail market share also fell considerably – from 73.1% to 55.4% in the same period. The EBITDA margin, however, showed a clear improvement, climb up to 1.2% compared to a negative 7.1% -an increase of 8.3 percentage points, according to an ET report.“In the EV segment we became one of the few global manufacturers who achieved positive EBITDA, after a higher level of localization, aggressive cost reduction and the security of PLI benefits,” Tata Motors stated in the annual report.The improved profitability was supported by several factors, including an increased localization of components, cost -saving measures and support supported by the productivity -linked Incentive (PLI) schedule. The pli benefits amounted to RS 527 Crore, consisting of RS 385 Crore earmarked for FY25 and RS 142 Crore received for FY24.The total other income of TATA Motors, including different government stimuli, rose to RS 3,458 Crore in FY25, compared to RS 2,971 Crore the year before. This included export and other stimuli worth RS 1.021 Crore and RS 617 Crore for FY25 and FY24 respectively. In addition, the foreign subsidiaries of the company of tax credits benefited from research and developmental spending, in which RS received 2,438 Crore in FY25 and RS 2,354 Crore in FY24.Jaguar Land Rover (JLR), the luxury subsidiary of Tata Motors, established in the UK, booked a strong year in terms of the currant profits. JLR registered an exchange rate profit of RS 981 Crore in FY25, sharp from RS 190 Crore in FY24, attributed to currency movements and real value adjustments.Despite the short-term pressure on EV sales, the ability of TATA Motors emphasizes EBITDA positive the benefits of structural cost effects and strategic government support, which makes it stronger for future growth in the rapidly evolving EV landscape.