Tata Motors Passenger Vehicles Limited (500570) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. Welcome to [ Tata Motors ] Mumbai. My name is Prashant, and I'm here to brief you on safety procedures. Your safety and security are of prime concern to us. The ballroom where you are seated at the moment is at the ground level. In the unlikely event of an emergency, the main entrance is the main fire exit entrance that leads you out of the hotel. The second emergency exit is located near the cloak room that takes you to the assembly area. All our associates are trained emergency responders and will assist you in case of an unlikely event. Please follow the appropriate fire exits signages in case of an evacuation. On behalf of [ Tata Motors ] I would like to wish you all a very safe and secure event. Thank you.

So hello, good morning, and welcome to Tata Motors India Investor Day 2025. When we met last year, we had outlined several strategic imperatives that we believe would drive us success and growth. I'm pleased to share that we've made meaningful progress across these and through the day today, you'll hear from several of our business leaders. They'll walk you through how these priorities have taken shape and how we plan to build on this momentum as we go -- as we continue our journey forward. So today's agenda is designed to give you a comprehensive overview of our performance, strategic initiatives and our plans for the future. So we'll begin with the financial review of the year gone by, by Balaji. This will then be followed by the business session, starting with Mr. Girish Wagh, who will cover the strategy and outlook for the CV business. We will then deep dive into our key businesses within the Commercial Vehicles business segment, starting with trucks followed by buses, small commercial vehicles and then our digital initiatives. After that, we'll review the financial performance of the CV business and conclude the session with an interactive Q&A with all our CV business leaders. Post lunch then will shift the focus to the Passenger Vehicle business, where Mr. Shailesh Chandra will cover the PV strategy and outlook for the segment. We will then turn our attention to the thematic pillars of the business, covering after sales transformation, mainstreaming of electric vehicles, design and software-defined vehicles. This will be followed by the financial review and outlook for the PV business. Towards the end, Balaji will return to share an update on the upcoming merger, following which he will be joined by all the Passenger Vehicle business leaders for a Q&A session. So we are expecting to end the day at about 5:15 in the evening. So with that, let me invite Balaji, Group CFO, Tata Motors, to officially kick off this Investor Day.

Good morning, everybody. And thanks for making it on time. And of course, it's almost full house. I'm expecting a few more people to come in subsequently, but thanks all of you for making the time to hear our story. Let me quickly cover the performance of this business over time. And this is a chart that we shared even in the investor results call. It's worthwhile to just pull back a bit and just understand how this -- how far this company has traveled in the last few years. And be it on the revenue side, profitability side, investment side, cash flows and going net debt-free and stepping up the ROCE. I think it's been an all-around performance coming in from all sites. And more importantly, every one of the businesses have delivered. It is not a one-off show that is there. And some of these numbers are very stark. For example, the highest ever revenue being hit in one of the most challenging years that we've had in automotive, highest profitability, PBT before exceptional item, in such a year, the highest investments we have ever made. And despite that going net debt free for the first time, it's a very, very strong performance that is coming through. This is one of the things that we committed to you last year and the years before, and very, very happy and pleased that it has actually come through. More importantly, I think this also signals the underlying health of the business. And what you're going to hear today is how that underlying health is actually transforming the business and where do you want to take it from here. I think in these kind of events, it's most important to first do a scorecard check in terms of what did we say and what did we do. And things have -- most of the things have gone well, but some things are still to do well. And what on the left-hand side is what we called out as our priorities for Commercial Vehicle business last year. And on the right-hand side is our performance against that. We talked about increasing market share, where I think we held our shares on the heavies, and this is as per Vahan registration reporting as per the segments as Vahan is there. We'll talk about -- Rajesh is going to talk about his internal metrics, how he's moving those. The only red that you see in that is Small Commercial Vehicles, and I'm happy that Pinaki is here to come and talk about that. And all other metrics, the profitability, CapEx, cash flows, ROCE, all of them have done exceedingly well. And this is an area when I circle back towards the end of the presentation today, you'll notice how you want to take it from here and how you take it to the next level. On the Passenger Vehicles side, it's fair to say it's been a year of consolidation. And while we grew our market shares on the SUV segment well, hatches declined, and that did impact the overall share. And with the recent launches of the Tiago and Altroz and you're going to hear a lot from Shailesh and his team as to how they're going about doing it, turning this business around again. EBITDA margin has been a disappointment this year. We did 8.1%, we would have loved to hit a double-digit EBITDA. And that is something that is clearly laser-focused in terms of we wanting to continue to deliver those. CapEx and free cash flow, we are on track. On the EV side, I think there's been a significant amount of work that has been happening. And you will hear a lot of discussion on EV today, be it on the portfolio, be it on mainstreaming of EVs, charging network, all other myths that have been busted and how with the just concluded launch of the Harrier, how this thing is being lifted, multiple, not just above. And I'm very excited with this particular journey that has been there. We are delivering on all our metrics on this business internally, but that's not good enough. We are the market leaders, we have to shape the industry, just delivering on metrics is not good enough on this. And of course, all this has meant that the credit ratings continue to improve, and that is all goes well in terms of financial flexibility for the business. And of course, in all this, a slew of corporate actions have been initiated. We delisted the ADR, the DVR cancellation and then reissuing this ordinary share is one of the biggest work in terms of balance sheet cleanup that we had done. And in terms of value unlock be it in TTL, be it on Tata Motors Finance being sold off to [ Tata ] Capital, all of that is done and dusted. And the implication of all that has also meant that the business is now debt-free. That now gives us the ability now to demerge the business into 2 setups. Otherwise, it has been impossible to demerge this business earlier. And now we are ready to do that and more about that in the second half of the section that is there. But before we get on the demerger conversation, what does that mean to the respective businesses because end of the day, the demerger is a corporate activity beyond the point, it doesn't matter. What is important is what is the strategy of those businesses? How are those businesses poised for growth, poised to win in the marketplace? And what are they going -- what are they doing in terms of fixing their fundamentals wherever there are weak spots that are there. To hear more about that, we are going to -- as Sneha put it, we're going to have a conversation first around commercial vehicles and then into passenger vehicles. So without further ado, why don't I invite Girish on to the stage to talk about his journey on the Commercial Vehicle business. Girish, over to you. [Presentation]

Good morning, everyone, and it's always a pleasure to interact with you once in a year and also then once in a quarter and always look forward to your insights as we take this business ahead. So today, as Balaji mentioned, I'll lay down the overall context for the CV business, followed by a presentation by each of the business heads. And then Ramanan, the CV CFO, will then summarize it at the end. So I'm going to spend more time not on what we have done, but more on what we want to do, especially since we are at this important milestone of demerger. Let me start with a quick overview of the global CV industry. And post-COVID, in terms of volumes, global CV industry is yet to catch up with the pre-COVID volumes. And in fact, there has been a 1% CAGR drop in volumes. But the OEM revenues from vehicles have grown at a CAGR 1% and overall revenues have grown at a CAGR of around 2%, which is also due to increase in the downstream revenues. If we talk of the Indian CV industry, post-COVID, the industry did rebound sharply and last 2 years has been consistently delivering close to 1 million volumes. So with this, we will see that while the volume has stayed the same, in revenue terms the industry has grown at a CAGR of 7%, that's a significant growth, which the industry has achieved. And a large part of that also has been due to the regulations. So the Euro 6 Phase 1 or BS6 Phase I and Phase II have led to significant revenue uptake. Going ahead, there are 4 key megatrends which are going to impact the industry global as well as India. The first one being, I think, connectivity will be ubiquitous across the commercial vehicles, driven by both regulations as well as expectations from the customers to improve their business. Electrification will be the way forward for decarbonization. But in CV industry, I think one will also see use of hydrogen, be it in ICE or maybe in fuel cell. ADAS, that is advanced driver assist features, will be useful to improve the safety and comfort of the drivers and therefore, will enable OEMs to migrate to higher power-to-weight ratio and reduce the turnaround times of a trip. And finally, software-led development, not limited to passenger cars, but will also play a role in commercial vehicles and will be more useful to address customer pain points, the SDV architecture in commercial vehicle will be able to integrate all the attributes and functions in a vehicle and deliver the customer better TCO and better uptime. So I think going ahead, therefore, the industry will have a continued growth in revenue and this will also be driven by a few more regulations in the pipeline, the main one being the BSVI. I don't have to tell you about how the economy is doing and how it is likely to do. But the way we see it for the commercial vehicle industry, the GDP growth is likely to be about 6% up to FY '30. The infra spend is almost likely to double in the next 5 years compared with what has been spent over the previous 5 years, which augurs well for the CV industry. The fuel prices have remained flat and in fact, have reduced in CNG to some extent in diesel also, but likely to remain flat going ahead unless there is a geopolitical disturbance. The regulatory road map to a large extent is predictable now, and there have been a good amount of discussions between the government and the industry to decide the introduction of various regulations. Scrappage policy is a big positive. And I think we have been reading various articles, but the average age of commercial vehicles on the road, especially heavy commercial vehicles is also going up. But it is also due to the improvement in the quality of the vehicles, improvement in the quality of road infrastructure. And as a result, the vehicles are able to travel longer not just in 1 year but also their lifetime. If you look at the goods transportation on your left, most of the end use sectors are likely to do well. Be it power, steel, coal, cement and so on and so forth, and therefore, these sectors, which lead to a significant demand in the industry are likely to do well. The fleet utilization is also doing well, and I'll speak about it through our internal metrics on the next slide. The dedicated freight corridor is the only red item in this and to spend a few minutes on this. I think the Northeast dedicated freight corridor is already operational, but has not led to any impact on the roadways. The reason being on the Northeast corridor, it is more of the bulk commodities, which are transported by railways, so they have moved from regular railways to DFC. On the Northwest corridor, it is going to be more of the container transportation, which is likely to move from rail to road to support export import. And this, to some extent, will impact the heavy tractor trailer market, but it will lead to an increase in intermediate, light, medium commercial vehicles as well as small commercial vehicles. Coming to passenger mobility. I think in addition to the GDP growth, there are a few other key factors which will help here. The tourism is increasing, manufacturing and services sector are likely to grow at 3% and 7% GDP rate going ahead, which will mean more and more employees traveling to the workplace. And therefore, these will be positive factors. In addition to this, on electrification and shared mobility, both the demand and supply side incentives for the government will continue for some time, whether it is the PM e-Bus Sewa on the demand side or the PLI on the supply side, which will ensure increased penetration of electrification and the gross cost contract model. So overall, it augurs well for the commercial vehicle industry. Going ahead, this is a combination of internal metrics that we have been now able to track with the fleet edge being installed on almost 800,000 vehicles. So what you see on the left is fleet utilization. So essentially, we track 2 metrics on a daily basis. First is, out of 800,000, how many vehicles are on road and are not waiting for load or unloading? And the second metric that we track is what is the average distance traveled by a truck on a daily basis? And what you see here is from January[ '23 to ] as late as last month, how it has moved. And one can see that across all segments, the utilization has gone up. And the utilization, in fact, in some of the segments like HCV cargo is at a very, very healthy level. This is the kind of utilization one had seen pre-COVID. So I think the utilizations are certainly back on track, and you can see that we are also able to track almost by every segment. In addition to that, in the middle pillar, we also track this customer sentiment index on a quarterly basis. So even here, one can see that the Tipper sentiment index is certainly doing well and growing, which is also an indication that post the elections -- general elections last year as the government has come into place, they have started the new infrastructure projects and therefore, the demand for tippers has gone up. In other segments, whether it is heavies, intermediate and small commercial vehicle pickup, after a drop in year '23, I think more or less, the sentiment index have remained flat. Looking at freight rates. I think the freight rates have gone up by around 4% to 5% over last 18 months. And if you see the cost structure, operating cost of the transporters, that has gone up by around 2.5% to 2.6%, essentially due to the driver cost and to some extent the vehicle cost. But in last 2 years, the increase in the vehicle cost has been much lower after the introduction of BSVI Phase 2. And as an outcome of this, therefore, the profitability of transporters has gone up, as you can see in the graph on the right hand side bottom. So overall, I think the transporters are also in a good space. And this also augurs well for the industry going ahead. This is about the overall freight available in the country and how it is distributed between roadways and railways. I'm not talking about airways and waterways. But you can see that the light view shaded area is about demand billion tonne kilometers for roadways, above that is the overall billion tonne kilometers demand, which includes the other railways, et cetera. The dotted line is actually the share of roadways in the overall freight being transported. And the thick white line is actually the annual volume of CV industry. So there has been a lot of talk of the railways taking away a lot of share of roadways. But actually, you can see that over the years, the share of roadways has gone up. And in the recent past, in fact, it has actually stabilized at this level, 62% level. And this has, therefore, led to the volume graph that we see. But there's also interesting thing in volumes, which, of course, I mentioned it last year also. And actually, in the past 5 years, the demand of freight in billion tonne kilometers has grown on an absolute basis in 32%, and while the number of vehicles sold have more or less remained the same, because of the shift to the higher tonnage in each of the segment, the supply BTK, billion tonne kilometers, has actually increased by 36%. And this also, therefore, reflects in the revenue, so the revenue CAGR has not only been due to the regulatory cost increases, but also due to the shift to the higher tonnage vehicles. I think going ahead, the road BTKM is likely to grow at a CAGR of around 5% to 7%, which will lead to a safe increase in the CV total industry volume by around 3% to 5% CAGR over the next 5 years. We may have a year in between where there is a drop but otherwise, this is how the industry is afraid to do. Going ahead -- okay, as I said, I'm not going to speak so much of what has been done. And I think the business heads and Ramanan are going to cover that. I'm going to spend time more on what we are going to do. So in the past 2, 2.5 years, I think we have moved from a market share at any cost to profitable growth. We have moved from push-based offtake share to demand pull-driven Vahan share. And we've also moved to razor sharp focus on working capital management and the results are yet to see. But as we were gearing ourselves up for this demerger and Tata Motors Commercial Vehicles, operating as a separate entity, as a team we got together and we envisioned the future. And this was an exercise, which was done with a cross-section of people from diverse backgrounds and diverse levels to ensure that we capture inputs and thoughts and aspirations of everyone in the organization. And we also took inputs from all the key stakeholders. At the end of this exercise, we then laid out our vision. And this vision has 3 pillars. But of course, we certainly want to be a trusted, globally recognized mobility solutions leader with sustainability at core. So this is the starting point. We are anyway a trusted brand, but we want to be trusted globally. We want to be a mobility solutions leader, which clearly tells our interest in increasing the share in the downstream business, and sustainability will absolutely remain at core and not from a compliance perspective, but how can we generate business opportunity through that.Here, we will be first looking at exceeding the stakeholder expectations and the customers' expectations. And customer expectations we want to have highest brand appeal with singular focus on customer success. The brand already enjoys a significant trust, and we want to now take it to the next level with focus on customer success. Second is we are also aiming for higher valuations through increasing the share of the noncyclical businesses as also the higher margin and return on capital employed businesses. So that's what we have said in our vision. We also, of course, want to deliver superior financial returns and what does it mean for us? First is resilient margins and free cash flows through the cycle, then continued focus on segment-wise profitability, and therefore, going for competitive and accretive growth. And finally, leaner cost structure and tighter capital allocation. So that is what we mean by superior financial returns. And finally, to do these -- to get to these outcomes, we will be fostering diverse talent, partnerships, innovation and ecosystems. And here, we will be building very actively new capabilities in the areas that I spoke on the first slide as also digital and AI. From the vision, we've arrived at our strategic objective. Where will we be in 5 years? What is it that we'll deliver in 5 years? And this has obviously the first part being delivering double-digit EBITDA across the cycles. So we know CV is a cyclical business, and this is a very specific objective you've taken. We have built some scenarios that if CV commercial volume drops by 30%, what does it mean and in that scenario, how do we remain double-digit margin? I think this is the work which has been done. And of course, while delivering industry-beating revenue growth. So Balaji spoke about the scorecard that what we've achieved till now, in which I think the only red was small commercial vehicle pickups. But after there was a bit of an imbalance, if I may say, when we changed our approach from market share at any cost to profitable growth, I think we've achieved a new balance, and we know how to drive this journey now and we are clearly committed to delivering industry-beating revenue growth. To do this, we've also arrived at what is going to be the repositioned brand theme, and please hold your breath because I'm going to speak about it on the next slide. All this will be driven through our 8 businesses and the support functions and these 8 businesses, which have been combined into 4 buckets. The first is domestic commercial vehicle product businesses, the second one being international business, then the entire group of downstream business and finally, digital and AI, where we see a big opportunity. And therefore, we have today Swami, who is going to present specifically and separately on the digital business. How will this be achieved in each of this business? So we've also identified our strategic game plan and what we will be doing in each of these businesses. So for example, innovation and tech-led products will help us drive differentiation and also ensure frugal adoption of technology. Customer-centric mobility solutions going beyond products and ensuring that we deliver the customer success through the life cycle and peace of mind. Financial fitness, I think I have already spoken enough about it, but it will be at the heart of each business and their strategy. And in fact, each business is now actually driving their own financial fitness and growth aspiration. In digital and AI, we strongly believe that we can offer differentiated customer value proposition. In addition to that, through enterprise digital, we can also bring unbelievable efficiencies within our internal systems. Sustainability, of course, will remain at the core, and we will focus on decarbonization, circularity as well as preserving biodiversity by clearly bringing benefit to the business and also partnering with our stakeholders, including dealers, suppliers, as also customers to help them on their sustainability journey. And finally, we will focus on capability building, not only within the organization, but also through partnerships, and we'll also look for inorganic growth opportunities. As a part of this exercise, we also arrived at what kind of cultural values do we need to invite, do we need to inculcate so that these outcomes can be achieved. And we have arrived, co-created the cultural transformation hinged around these 4 values, which is being bold, owning it, solving together, which is about collaboration, and being empathetic, which is about customer success or for that matter success of all other stakeholders. So that's our pyramid of purpose, if I may say so, at the end. And this is what we are aiming to gun for in the next 5 years. Now let me come to the brand positioning, which is Better Always, and what does it mean for us? So we have the fortune of and privilege of having the Tata brand, which is so well known and is actually always thought of as trusted leadership. But beyond that, I think we did a massive exercise, 24 months back started wherein we actually had more than 330 qualitative sessions, more than 5,000 quantitative interviews with customers and other stakeholders to understand how do they perceive our business, how do they perceive our brand and what do they expect from us. In many cases, we now have third-generation entrepreneurs who are working with us. In some cases, even fourth generation early entry into the business. And what those who started the business expect from us and the new generation ones is quite different. From these interactions, therefore, we arrived at what are the core values which we need to upheld -- uphold and keep it at the core of the brand position as we go ahead, which is trust, durability, economy, accessibility and capability. But there clearly are some values, which did well 50 years back, 20 years back, but will not take us forward 20 years, and therefore, we are going to shun those values, which are on the left-hand side, which is actually legacy system, very disciplined processes. They work at a particular point of time, but not now. And there are new expectations that the next-generation customers and stakeholders have from us, which is on the right-hand side, and based on this, the brand position is being tweaked and moved towards right, as you saw in animation, will consist of the core values and the new values which is better always. And as a part of this, our endeavor will be to deliver better solutions to the customers always aimed at their success. And what does it mean for us is also agility and growth-oriented mindset pushing the limits but with positivity and humility, and endeavor to deliver better every movement to customers and stakeholders and a philosophy of continuous improvement. And these are the focus areas. We will -- we are now driving cultural alignment across the organization through communication as also our front end, which is the face to the customer. So that's the new brand position for us and how we are aligning brand position to the new vision and the culture in the organization to this new brand position. So both these, the pyramid of purpose and the brand position will now form the core of our next 5 years journey. Going ahead. So these are the 4 buckets that I also spoke on the pyramid of purpose slide. We'll just to dwell on that, in domestic CV businesses, in trucks, we will aim for profitable growth. Very clearly, we are the market leader here and we will aim for profitable growth, which will also mean focusing on higher revenue kind of segments and doing much better there. In buses and vans, 3 things. Of course, the business growth, but also mastering the model for electrification which is the asset-light model with payment security, and third is then driving electrification in private sector. In small commercial vehicle and pickups is a clear area where we have to recover the share that we have lost. And while we have corrected the financials in this business, I think the task has been clearly laid out for us in terms of regaining market share here. In International Business, we will consolidate the share in existing markets like SAARC and Middle East, but also start growing in newer markets like North Africa, ASEAN, even Eastern Europe and LatAm. So these will be the focus areas for IB going ahead. In the downstream business, in parts and services, parts first, the focus will be on continuous improvement in penetration and growing the automotive fluid portfolio that we have created. In services, deliver full maintenance solutions, which will deliver peace of mind to the customer, but is also an assured revenue stream for us as we go ahead over the life of the vehicle. And in Smart City Mobility, of course, master the model for the gross cost contract because that is the way forward which is in our country. In Digital, in fleet edge, we have more than 800,000 vehicles now. We also have a stake in a freight aggregation company by name, Freight Tiger. And we believe that through this foray, we can make a big difference. This will be asset-light business, absolutely dependent on software and can actually bring in efficiencies for logistics cost in the country. So that -- those are the strategic business areas, and each of the business head is going to speak about it. I'm going to speak about the Downstream and International business after this quickly. This is also an important slide. I think when we were doing a very thorough analysis of what do the customers expect from us. The 4 things which come out finally that the customers want. Improvement in total cost of ownership, increased uptime, return load if OEM can give. And finally, trained drivers also if the OEMs can give. But these are the 4 things that they need. And based on this, we've actually created our customer centricity framework, which is being driven through the organization by having the right set of metrics across the organization, not only in front end. The first pillar here is about delivering -- driving product superiority. And we have good processes set in the organization for annual product planning, including Hack-a-Future methodology, which will ensure that we are able to translate customer pain points or the ecosystem friction points actually into innovation opportunities. And here, we are actually tracking the total cost of ownership in the field with respect to competition. In addition to that, we are also improving reliability and reducing the unscheduled visits between 2 service intervals. Service excellence and service agility is what we are driving to improve the customer experience. Here, we've also not only improved the turnaround time, but also implemented a lot of digital tools with which access for service for the customer has become easy. And in fact, in some segments, we've also started doorstep delivery of service. We've also introduced some metrics like customer effort, which have been used by quite a few organizations globally to drive their customer-centric transformation. So this is one metric that we are using now in service agility. And finally, to drive true customer success, last year, I mentioned to you that we have created a customer success center, where we are able to drive -- where we're able to track 800,000 vehicles centrally and then give prognostic support -- proactive support to the customers. We have democratized this concept, and now we have customer success centers at 105 dealers, and we are also on track of now implementing this at individual customer site, therefore, helping the customer improve their business. This has already been piloted and is actually delivering well. Here, we will use a lot of digital and AI tools like Mileage Sarathi, which is delivering almost 6% fuel efficiency improvement in real life. And with 50% of the cost being diesel, it means 3% profitability improvement for the transporter. And of course, we are also working on vehicle uptime enhancement and now guaranteeing vehicle uptime to the customers. So this is what we are delivering across the businesses for customer success. Coming to the downstream business, I think at the top, you can see that we have been able to grow at a rate faster than the product business in terms of revenue, spares penetration, service penetration as also the digital penetration in spare parts. I think we have here improved the competitiveness of our spare parts portfolio and especially on the parts which form part of the total cost of ownership have been made very, very competitive. We have focused a lot on supply excellence wherein the entire supply chain has been digitalized that is right from the customer and mechanic back to the company and then company through the warehouses back to the customer. This has been digitalized, and we are now tracking on time in full at an equal to 1 level. There's a scope to improve, but we believe that with this digitalization and supply chain excellence, we will actually be able to improve the penetration further. On service penetration, apart from network expansion, I spoke about the digital initiative on the earlier slide. This has also helped to improve the penetration of our service and has also helped the dealers to improve their profitability significantly. Finally, E-Dukaan, which is our digital storefront for spare parts still B2B, but now we are getting into B2C as well. With this, I think we have been able to improve the penetration in our retail channel and more than 50% of our sales in retail channel is now happening through this digital channel that is E-Dukaan. Going to international markets, just to lay the context first, the global commercial vehicle industry in trucks and buses, which is 6 tonne and above is around $326 billion, out of which the Triad and China constitute almost $260 billion, so we are keeping that aside from an export perspective. In the rest of the world, therefore, we are already in SAARC, Sub-Saharan Africa, and Middle East, which is around $7 billion market so although it is 2% of the global market, it is still quite significant. And now we are also exploring future opportunities in ASEAN, LatAm, Eastern Europe, as I said, which is almost $59 billion of the market. Our strategy in international business is quite clear where we will consolidate the shares in our current markets that is SAARC and Sub-Saharan Africa. We will grow in the markets of $59 billion through the right product portfolio. And here, we will also leverage the Tata Daewoo product portfolio, which is absolutely complementary to our product portfolio, have the right channel and also have the right partnerships for retail finance. So in the past 5 years, we have grown at a CAGR of 9% and we have a target to more than double the CAGR in the next 5 years for the international business. Going ahead on technology. So I spoke about the megatrends on the first slide itself, which is the ACES, sustainability, digital and AI. In addition to that, we are driving this attribute leadership strategy in alignment with our brand positioning, brand theme. We're getting ready for future regulations and every regulation, our focus has not been just mere compliance but actually to increase value to the customer, which we have done in the recently introduced AC transition also. And as I said, we have a robust annual product planning process with the Hack-a-Future methodology, which helps us to be very innovative. Now here, we have been investing in the future. And the first one is in the area of multi-energy architecture. So we have been investing almost 40% of our CapEx in the futuristic technology, whether it is alternate fuel, hydrogen, electrification. We are also leveraging strategic partnerships, whether it is with Cummins or few others. And we are also running the first hydrogen truck pilot of India in 4 corridors for the next 18 months. On safety, ADAS, I think we are the first OEM to get a Level 2 ADAS certification for commercial vehicles, and we are also working towards meeting very advanced European safety regulations for all the cabins across our portfolio. We continue to work on lightweight designs, but more so now with sustainability agenda. Our designs are also becoming circular to increase reuse, recycle and reduce. Connectivity, as I said, will be at the heart of the business, and we will continue to dial up on the connectivity platform that we've built. Enterprise digital, as I said, I think will be used to address customer pain points, the friction points in the ecosystem and also improve the efficiency in the system. We are in the process of implementing AI native ERP, which should happen during this financial year, and we are also embarking on implementation of a new AI-native CXM, that is customer relationship management software. So that's where we are in terms of investing in the business and more than 40% of our investment is actually going into this futuristic areas. Now coming to sustainability. And we continue to accelerate this transition. As you know, we've already announced that we will be working towards net zero greenhouse gas emissions by 2045. But after that announcement, we also signed up to Science-Based Target initiative. And what you see in the dotted line there is actually a SBTi V5 glide path which has been created. And during the past year, I think we have been able to not just catch up with that glide path but actually do better. And our trucks portfolio has been significantly contributing towards this. And in fact, Rajesh will speak about it, but the actions that we took last year for reducing carbon dioxide actually is equivalent to planting 1 billion trees in a year. That's the kind of impact that we have in driving net zero. And at the bottom, you can see, I think these are our new gen technologies, trucks that we introduced at Bharat Mobility Global Expo. On circularity, we are looking at, first, within our operations, how can we become net positive, 3 of our clients are already net positive on water. Three of our plants also have zero waste to landfill. And much before the end of this decade, all plants will be net positive on water as also zero waste to landfill. The plants have also been working on getting renewable energy 100% across all our locations, and that's also well on track before the end of this decade. In circularity, while I spoke about the circular design, which is being implemented by our technology team, we also looked at a business model opportunity and created this ReWiRe which is Recycle with Respect, a franchise-based scrappage business, wherein we now have almost 8 scrappage centers operational across the country. This gives us a capacity of anywhere between 160,000 to 200,000 vehicles being scrapped during the year. In these franchise centers, we've also developed digital platforms for demand generation in terms of getting old vehicles for scrappage, digital platforms for disposing of the scrap, which gets generated in a sustainable manner and which also is a significant revenue potential for this entire business model. So this is something which is now getting established. And in addition to this 8, there are 7 more ReWiRe centers, which are close to completion and should get introduced during this year. We are working on extending our digital platform, build AI capabilities on that to start capturing revenue from this entire business model. Finally, on preserving nature and biodiversity. We've taken up 3 milestone projects as a part of our preserving biodiversity initiative. The first one is going to be all our plants, 100-kilometer radius, we are analyzing the wet lands. How have these wet lands changed over the past decades and what is it that we can do to restore these. And once we restore these, it's also going to help the Central Asian Flyway because these are the wet lands around our plants which are actually used by these migratory birds, right? And this ecosystem has got disturbed, and this is something that we are looking at getting it back on track. The second one is about, we call it as Project Maximus, which is elephant ecosystem conservation. And in Jharkhand, Orissa, where we operate as also Kerala, Karnataka border, Tamil Nadu border. I think there's a lot of elephant population. And while there is a lot of focus on tiger conservation in the country, I think this species also calls for a similar amount of efforts. And that's what we have decided to lead the efforts. And we are seeing that gradually there are quite a few other players, not only Tata Group companies, but also our suppliers and other partners are wanting to join these efforts. So this is what we are doing on the preserving nature and biodiversity, and I think sustainability will remain at the core of the transformation that we are undergoing. Let me also say that in all these efforts, whether it is moving towards renewable energy, or reducing the greenhouse gas emissions from tail pipe or getting to net positive on water, reducing zero waste to landfill. Each of these have actually been positive business cases for us. ReWiRe, of course, is a good business model, and we are looking at how we can actually leverage this further and get some revenue. And you can imagine that all these business models are pretty high return on capital employed because our capital kind of commitment is going to be very, very low. Coming to my final slide, therefore, and this is in alignment with what Balaji also showed as the overall scorecard. So I think we will continue to have the focus on profitable growth and the Vahan share, specifically only Vahan share, and trucks and buses, we are absolutely on track. I think it is a steel pickup which is a challenge we know while we have delivered on the financial turnaround there, I think we have to get the Vahan share back, and Pinaki, who is the newly appointed business head for SCV and pickup is going to speak with us about that today. We will continue to deliver strong financial performance. And I think the financial focus has now gone down at least 3 levels below me, and there are a set of metrics that people follow, which finally will move -- talk towards revenue growth or margins or cash flow or return on capital employed. Not even INR 1 crore of investment is done unless we take it through the return on capital employed filter. We will continue to have accretive and profitable growth across all the product lines and we'll hear from the business leaders. Dealer profitability is a significant focus area that we had last year, and I'm very happy to tell you that there has been a swing in dealer profitability. We have reduced their inventory, we've increased their margins and we have increased their service absorption ratio, which is the revenue that they get from the downstream businesses, which has led to this improvement in profitability. But I think after looking at what we've achieved in the last 18 months, we have a very clear road map ahead to take this to the next level and make this franchise of Tata Motors commercial vehicles for the dealers, the most profitable one. We will continue to work on strong working capital management practices. And I think Ramanan will speak. The results that we've achieved on working capital are actually benchmark in the industry. We will continue to focus on that and as also focus -- razor sharp focus on capital allocation. And we started with the dividend payout since last year. And this will also, therefore, be a clear focus area for us in terms of healthy dividend payout. So that's what we are aiming to do. I'm now going to hand it over to Rajesh who is the Head of Trucks business, and he is going to speak about the profitable growth story in trucks, that will be followed by Anand, who heads the Buses and Vans and the Smart City business. He's going to talk about how he's growing this business and how he's going to crack the GCC model, that will be followed by Pinaki who will speak about how he has assessed the SCV pickup market, the business. And what steps we have taken until now. He's just 60 days into the system, but what steps he has taken, and how is the road ahead? That will be followed by a presentation by Swami -- Swaminathan, who has joined us 90 days back as the Head of the Digital business, comes with a very strong background and pedigree. And he's going to speak about the digital business. And then finally, Ramanan, our CFO, will round it off with what is it that we've achieved, what we've achieved, and he will also speak of some numbers in the future, which is, I'm sure some of you would be looking forward to. But thank you. With that, I would like to invite Rajesh on the stage, Rajesh.

All right. Very good morning to all of you. Okay, let me take you now through our truck journey, which is 3.5 tonne and above. We have 2 segments here, ILMCV which is 3.5 tonne to 19 tonne and HCV, which is heavy duty, 28 tonne to 55 tonne and it also includes cargo, tippers and this thing -- tractor trailers. Okay, let's begin with -- can you go to the next slide? I missed. Working. Okay, fair enough. Let's take you through this journey. Girish did speak about our commercial vehicle #1 position in the country. I'm going to be specific for trucks. Globally, beyond 6 tonne and above, we are at #4 position, right? And we aspire to improve this going forward because we get confirmed data by manufacturers, by countries through a designated portal around global 6 tonne and above information, that's the source of this data. Now domestic truck industry is on a growth trajectory. We heard from Girish various sectors firing and therefore, how we've been driving and what do we see going forward? This is largely on broad macro trend indicators, whether it is steel, port, cement, and mining, which has remained subdued for the last 1.5 years has also started acting positive now, so including cement. And we have seen over the years particularly post BSIV introduction from 2017. As trucks move to more electronics in it, okay, customers are also looking for and complete solution from OEMs. It's not just cab or [ cab chassis ] selling now, it's more of integrated solutions. Our drivers are, in fact, more demanding in safety and comfort. In fact, we are meeting on a day when today, the introduction of AC is mandatory from Government of India for from 3.5 tonne upwards. So including what we see as migration happening from lower tonnage to higher tonnage, high power-to-weight ratio. So what is that? Let me very broadly indicate. So say, about 5 years back, tractor trailers and -- no, 7 years back up to BSIV era, we had tractor trailers going up to 180-horsepower and including tippers, max they would go up to 200 or 220 horsepower. Now it all starts with 300 horsepower, which means more power, more torque and with GST laws in place and seamless transition from one state to another is leading to hassle-free transportation. And therefore, the productivity is going up, customers are demanding far more durable vehicles and more productive and better drivability for our drivers translating into higher power-to-weight ratio. By the way, Tata Motors has taken a lead in this segment specifically. What used to be 180-horsepower for us is a base 300-horsepower now. And that helps us particularly in tipper and deep mining, which is a revenue model, and has to perform continuously just the driver change for 20 hours, 22 hours and we see a lot of traction building on, and therefore, our market share growing in those demanding segments particularly. When I say higher tonnage shift, we have seen what is going on in 48-tonne, which used to be sometime back a 37-tonne a mainstream product has all shifted to largely to 48-tonne. So we have taken a lead. On the global front, the key trends we have seen is decarbonization of freight. Clearly, vehicles are now more in demand, which are connected and intelligent trucks, okay? And that's why you heard from Girish more on building a connected platform where we have Fleet Edge, vehicle talks and provides a lot of insights. And divers are also looking for far superior experience. Now if I look at this size, strategically, what we have done is, we are leading the transformation of Indian trucking with advanced technology and energy-efficient solutions. So the launch of India's first ADAS-enabled heavy-duty truck reflects our innovation leadership. And including in alternate fuel, we continue to expand our presence. What used to be -- CNG only confined to up to 11 tonne, Tata Motors was the first to introduce in 19 tonne, now 28 tonne, cargo and now RMC. You would have heard recently that government of Delhi and NCR is talking about entry only CNG, LNG. Our company is poised and well placed as far as these products go. So these are on specific duty cycles. Large chunk of customers, key accounts, captive customers, they also have these net zero targets. They prefer this. And I want to say that in the alternate fuel, Tata Motors has leadership by far. Though a very small segment at the moment will unfold into a bigger opportunity going forward. Our digital platform, customer success center, Girish mentioned, Mileage Sarathi, customer success center even built at customers, talk about how Mileage Sarathi app built into it and, therefore, need-based trainings imparted, corrections done through the journey of customer is translating into a good benefit. And all this, including the FleetVerse, which used to be online sales platform almost 4 years back. Post-COVID, we saw that more and more transporters are interested in looking at our website, knowing about what our vehicles are. And to our surprise, they started buying now. We have extended FleetVerse to now used vehicle platform. So in the process, we are connecting -- we are creating a connected ecosystem. What is this? A connected ecosystem that drives uptime, performance and profitability for our transporters. That's going to be the key. Then we see our commitment to sustainability is embedded in Project Aalingana. Aalingana is Tata Group project, which talks about achieving net zero by 2045 as against Government of India target by 2070. We are aligned with global standards such as what Girish mentioned, SBTi, Science-Based Target initiatives, okay? And including building circular economy practices through a well-to-wheel approach. I'll talk about more when we go to the sustainability piece. So all this, including a leaner cost structure, leaner cost structure with focus on improved capital efficiency, which will drive the profitability. So let me talk to you about the market share piece and our key priorities for this year and going forward. In heavy commercial vehicles, our market share was about 53.9% and 20 bps more than last year. In ILMCVs, market share was about 40.2% growth over the previous year. If you just recall a few years back, we changed our approach and, in fact, shifted our focus of looking at market share through the lens of profitability. And this profitability is for customers first, followed by Tata Motors. So I'll cover this more in detail, what did it mean for the customers and Tata Motors. But what happened? Our financial performance reflects the pivot change. Strong margin growth was driven by better product performance, tailored unique offerings and if I may say, strategic cost control management through the operations. Now if you see this, that realization improvement of about 1.5% in HCVs and ILMCVs is about 2%. So this is a 1-year story. If I extrapolate this into what is in it for customer, so we find very heartening data and coupled with what -- which comes from customer success center and Mileage Sarathi, customers in this electronic truck era are opting for OEMs to handle their vehicles, which means something -- one unique feature we introduced about 1.5 years back was uptime assurance. In heavy demanding revenue model applications like tippers or e-commerce cutting across through the length and breadth of the country, customers are more demanding in as high as 98%, 99% uptime assurance, and how is Tata Motors helping this business case. So when we introduce this more and more customers, okay, in the beginning, resistance, how do we see this coming through? Yes, this unfolded into a tangible benefit for the customer. On-site support in the mining areas, in the construction sites because as I said, there's a revenue model attached with a CapEx of a few hundred crores, okay, in which a vehicle would be about INR 60 lakhs. But when customer sees that there is a container placed, people placed, my operations go uninterrupted. Out of 24 hours, vehicle runs in these mines about 22 hours. So a big time revenue generator for them. And of course, Girish did talk about fleet management solution, FMS, we launched about 2 years back. That has become a mainstream feature now, more and more customers opting for this. So for the customers, finally, it was more than 1.5% and, therefore, a better business case for them than us. And for us, downstream business taking a shape much bigger, and I must quote one number. So in this change, we see AMC fleet management solution and all these value-added services contributing a significant chunk as we move to the BS-VI. And I can see that even the retail customers, those who want to buy 1 or 2 vehicles are also opting for this solution from us. Now if I look at key priorities areas for us, bucketed into the 4 key areas. So what does it talk about? We are talking about delivering high-value life cycle value for the customer through focus on total cost of ownership as well as something as dependable uptime, so what is it that my uptime is going to be? And all this is enabled through artificial intelligence enabled connecting truck, which also has a predictive service tools. And these predictive service tools give us live tracking of our vehicles, fleet utilization reports. And on any given day, when I get up in the morning, I will have what kind of utilization is happening because we have 800,000 vehicles connected platform. And if I have to convert this into an unequal to one, which means unique customer in this application, in this geography, moving this kind of load and in this tonnage segment, what is it that tweak in approach or a new product we need to offer is also reflecting from this data. A very, very useful thing from this. All this, I want to say that Tata Motors remain committed to safety and comfort leadership. Girish did talk about India's first ADAS, which has set up a new standard in driver safety, okay? And on the bottom, if you see some of the key initiatives, which we are going to drive going forward. I mean, in fact, Micro Battles through the length and breadth of the country in which state, what matters. And therefore, we have taken the projects in those states on how we are going to drive unique customer offerings. Every customer is unique, application is unique. How do we translate that into meaningful offer to such customers, sectoral focus, steel, cement, what unique fully-built solutions we are supposed to provide. And in a cement, it it's cement, an example, if cement has to move in a bulk, do I have a bulker along with the vehicle? And how much more is my vehicle providing value to that customer? And new product launches, let me also announce that in this -- around this time, we were 300 horsepower as a base for heavy commercial vehicles. That is moving to 320 horsepower, more power, more torque, more productivity, better profitability for our customers. We did take some customers, body builders everywhere to our plants, and that is planned more so that they see for themselves what next is coming. Digital sales, I already covered; FleetVerse, et cetera, what we have done additionally. So if we see our brand strength, that has been on an uplift for the last 3 years now. Net Promoter Score, which is a barometer of customer advocacy has been consistent or rather grown last year. And in fact, recall and consideration are industry-leading, okay? So we have shifted from a traditional campaigns to insight-led customer engagement that is relevant and more action oriented. Let me quote an example here. What is that insight-led action piece? So we saw in 19 tonne, which is an e-commerce growing segment, we have our 5-liter engine, which delivers far more superior mileage, better productivity, which means more number of trips. So we created this testimonial, started with mileage campaigns, and there were more and more customers who could see that how much value it has added. Now this change has brought in a big time market share shift also for us. We continue to do this. Key account customer engagement. Like I said, it is a unique offering. Every customer is different. For different applications, we have this Bandhan Customer event wherein we interact with them, we talk to them, what are you going to -- what is beneficial for you in which application that's helping? And currently, trucking into the future is going on, which is about more driver safety and comfort we are talking about. Let me go to my last slide, driving future of trucks, okay, with sustainability. So it is all about starting with decarbonization of vehicles. How does that happen, decarbonization? We are building next generation of trucks to be more efficient, intelligent and focused on delivering fleet profitability. You look at on this slide, in fact, Girish's slide also did cover this. These are world-class alternate fuel options, and they are available with us. We have launched these products. We have CNG, we have LNG, we have battery electric. We have hydrogen not launched at the moment. Hydrogen is running through a Government of India project called MNRE to validate and then the infrastructure, et cetera, also has to be in place. But alternate fuel vehicles positions us at the forefront of green mobility, as you can see, and I have already covered that we have leadership by far here. Okay. Our actions. Now if we go specifically on these boxes, what has led to environmental impact? Our actions in last fiscal has -- because we get a live tracker, we know how much CO2 we have saved, and this translates into planting of almost 1 billion trees. So that's something, which was already covered. TCO-led changes in fuel efficiency, weight optimization, leaner processes. When we get this better, it translates into what we said as science-based targets. So how much mileage improvement has led to savings of -- for us in sustainability, it gives us a live tracker. And our focus now on building registered vehicle scrappage factory, 8 states, 8 plants, 4 are ready, which are going to get launched between now and next 1 month. So this helps us. When you get the vehicle at the end of life, you get the vehicle back instead of using it the way we have been so far. It is done in a more organized digital way where some parts are built and put back into the furnace, precious metal separated out. It's a different business model altogether, but it helps big time in our circular economy journey and, therefore, better sustainability. So I can say, in the end, all cylinders are firing, okay? We have a structured plan in place, okay? And we are confident that our market share in heavies and ILMCVs are only going to be growing from here. And globally, we would have far better position over the next couple of years. Thank you so much.

Thank you. Thanks, Rajesh. Good morning, everyone. Happy to be part of this Investor Day June 2025. My name is Anand. I head the business of buses and vans, and I also head the Smart City Mobility Solutions, the company that runs the EV buses that we produce. Let me give you a global perspective before we come to an Indian operations. As you can see from this slide, the bus industry has grown about 6% CAGR over the last 3 years, catapulted by the growth from India and China market. They are the fulcrum of this growth. And we expect this growth to continue because there are certain macroeconomic indicators, a structural change that's happening as far as the trends are concerned. First and foremost, I'm sure all of you as an investor, you have heard a lot of things happening on the electrification front. Day in, day out, we are getting to hear about 3C charging, 4C charging, flash charging, panto charging and so on and so forth. So there is a huge disruption, which is happening in this. And all these are aimed at improving the productivity for the customer, increasing the range as well as being able to get a better TCO for the customer. The challenge for an OEM is to get on par TCO with respect to the diesel and the race is on and this Tata Motors is definitely in the race. Next, which is happening is premiumization of this travel. I'll give an example, which is very relevant to this market. Today, to moving from Andheri to Thane, you don't need to wait. 10 years back, it used to be an OLA and Uber. Today, you have a personalized bus service where you get on to the app, select your seat and being able to choose the time and the bus of your travel. That's the kind of connectivity technology as well as digitization that has resulted in a complete change in the disruption in the business model. Yes, it's no longer a bus, which is sold as a product. It's a mobility as a service. And we are into an era where we are catapulting this growth as a mobility as a service. The third thing which is very relevant for Indian operation is the number of buses per 1,000 population. With the kind of INR 150 crores as our population and compared to almost -- we have overtaken China very recently, our buses per 1,000 population is at 1.2. Imagine if this is going to grow to even 1.5, and that's what the projections are over the next 5 to 6 years. The kind of growth that this industry is going to -- we have witnessed is going to be phenomenal. So we are into an era where there is an underpenetration in India, India being the fulcrum of growth for the bus business. There is a lot of government initiatives, which are happening, which is projecting this growth, and we are into this game full time. With BS-VI coming in, Phase 1 and then Phase 2, there are a lot of electronics thrown in. There is a need for a better management of the vehicle. The customers are expecting OEMs to chip-in in the form of fleet management solutions. That's helping us in terms of ability to get the vehicle back to our workshops at frequent times. Number two, it helps on a sustained revenue. We talked -- Mr. Girish Wagh talked about a cyclical revenue business, that's -- fleet management solution is helping our channel-partners in achieving that goal. Let me talk you -- take you through the facets of the CV passenger industry in the Indian context. Pandemic -- when pandemic struck, this industry was the one, which was the most impacted. Of course, it had a direct impact on the people travel, and therefore, this was expected to get. However, the kind of rebound that we have seen over the last 3 years has been phenomenal. This industry has grown at 23% CAGR over the last 3 years, primarily on these 4, 5 aspects. One, STUs have gotten a very high aging fleet. And therefore, there is an urgent need for a replacement, both in terms of diesel and an electrification. Number two, cities are getting bigger. Mumbai is no longer that Mumbai that we know. And therefore, there is a need for people to come into the city for their livelihood or to workplaces. So urbanization is propelling the need for schools as well as staff buses. With urbanization growing up, there is an urgent need for connectivity between Tier 1, 2 and 3 cities; therefore, it is giving rise to a demand for intercity bus travel. So all these are actually a good positive trend for the bus industries. Added to this, what is fueling this further growth is electrification. There is a need, the drive towards going net zero emissions. The speakers before me have spoken a lot about it. And bus is the one, which is leading the way where in terms of electrification of the entire business is concerned. One specific trend that we have witnessed as a business is 2 families getting together going for weekend trips that has -- and a lot of personalized travel has picked up in a large scale in the last 4, 5 years, and that's catapulting the growth of vans in the tourism segment. Fortunately, Tata Motors is present in all these segments that is giving us a growth. Be it school, be it routes, be it intercity or in the last-mile connectivity in the form of Magic. Indian bus industry is poised for growth on because of 3 major trends. One, the number of passenger billion kilometer is going to go up more than 30% over the next 5, 6 years. Two, the Indian roads, highways are going to grow upwards of 10 digits, 10% plus, which is going to help both in the last-mile connectivity as well as the intercity connectivity. Third, but not the least, there is a very clear policy push from the Government of India in terms of more penetration of the buses to take it from 1.2 per 1,000 populations to about 1.5 by 2030. How has Tata Motors done in this very interesting scenario? The year FY '25 that we went through has turned around -- has been marked as a year of turnaround. In terms of volume, we have grown 16%. In terms of revenue, we've grown about 6% to 8%. And above all, we have grown a solid 1.1% market share with only one thing in mind as a customer in core. And this has resulted in delivering a very good financial performance in the last year, which is one of the best in the last 4, 5 years. How did we achieve it? Mr. Girish Wagh touched upon that point. Two years back, we decided to move away from market share at any cost to a value-based selling, and bus is one of the best -- most beneficiary of this. We focused on expanding the product portfolio, be it 9-meter electric bus, 12-meter electric bus and so on and so forth, we have a slew of products we launched. We enhanced the customer experience through customer success center. We enhanced through the digital mediums in terms of innovation, in terms of freight management, online sales support and something called customer success center, wherein we are able to track every bus that runs on the road and be able to preempt any failures and therefore, ability to put the bus back on road and hence a better revenue for the customer. With all these things, we also focused on 2 operational parameters on the ground: One, we cut down on the inventories. Number two, we reduced the outstandings that we accrue from the market and thereby freeing up a lot of cash. This has resulted in FY '25, has been a momentous year in terms of turnaround for this business. Now how do we take this business forward to the objectives that we have set for FY '30? I will take it up through 2 forms: One, in terms of technology and then in terms of what we are going to do in the market. In terms of technology, we are already having the range of vehicles that are on alternate fuels, be it electric, we have a range of vehicles and more products are coming, intercity vehicles, city buses, staff buses, more vehicles are planned for launch in the coming year, number one. Number two, we already have deployed. We are very proud. We are the only OEM to have deployed hydrogen fuel cell buses already, which are running successfully in the country. We have this technology, which is ready with us. We talked about ADAS. We talked about air conditioning. All this already we are working at the next levels of safety, at the next levels of comfort and, therefore, keep the leadership position intact. The very specific thing about the bus industry, it is very, very fragmented, very segment approach; therefore, we need to have a very strong approach in terms of scalability and agility to get new vehicles at a faster pace and the variance. And therefore, the mantra for us is going to be scaling up through a modular and unified architecture. Last 2 few points, which we are working on are to make quality as a global standard. That's the journey that we have taken for the last 12 to 24 months. And this is a journey that will continue for another 24 months. At the same time, Indian, an average Indian customer is very frugal and cost competitive. And therefore, your quality standards and the global standards of quality and the cost of Indian is something that we are trying to marry it. We are open to partnerships, be it leasing, be it battery charging operators, be it power chargers operators. And we are expanding this horizon or the consortium partners for operations. We are looking at expanding our partnerships so that we are able to expand the horizon of this business. Let me go do a deep dive on -- that's on technology front, on what on each of the segments that we are planning to do. For example, I'll take a couple of things from this slide. Magic is the best suited for last-mile connectivity. We have so far been concentrating on pockets. Now the challenge for us and the initiatives that we have taken is to take it through the hinterlands of Tier 2 and Tier 3 cities. And therefore, a very strong permit management system, very strong government advocacy and engagement with the government agencies to get this done is something that we are on. ILCV buses, we are already the leader. To sustain this leadership and take it to the next level, we are looking at 2: One, in terms of schools, we wanted this to be the safest bus ever available in India. At the same time, as I mentioned in the previous slide, to be very cost competitive. Therefore, customers are going to get a cost competitive plus the safest bus in the school buses. MCV buses, it has got 2 segments, STUs and private market. Private market is all about intercity, long-distance travel. One of my customer commented to me, Anand, it's no longer just a bus travel, a sleeper bus is a bedroom by itself. That's the kind of comfort. That's the kind of features that in terms of WiFi, in terms of wireless, all those things that they are expecting, that's where a fully-built intercity coach is what we are looking at. Whereas STUs are government-driven, it's all tender-based. You need to be cost competitive. At the same time, you've got to get a very good annual maintenance contract package to be the L1, at the same time, get the profitability for the tenders that you want. So these are 2 distinct approaches that we have taken as far as MCV is concerned. The last, which is very important is on EV. The mantra is to crack this GCC. How do we crack the GCC? There are 2 aspects of it. One, on the private market, we want to partner -- we are already in a very advanced discussion with a lot of financial partners to go in for a partnership on the staff segment with an effort to drive towards matching the TCO parity. In the government business, where a lot of tenders have come in, there, we are planning to go for a consortium model where a credible operator will be the lead operator, and we will be supporting him in terms of design, manufacture, supply and maintain, where the entire operations and the payment and other things are taken care with. That's about the mainstream business so far. I would like to take you through Smart City Mobility Solutions, this performance and what we are doing over the next 2 slides. And before that, I would like to play a small AV, which on giving you a perspective of what we do in that business. And I have the AV, please. [Presentation]

As you have seen here, no other OEM in India and possibly across the globe has got this kind of experience. 3,600 EV buses, 34 crore kilometers running ourselves, the kind of data that we have gathered in terms of characteristics of a vehicle, in terms of performance is phenomenal, and we are leaps ahead of others in terms of -- in this kind of operations. Over the next 1 year to 2 years, our focus is going to be on expanding this business on 2 accounts: One is on a CapEx model where we will partner with the financing operator, offer this to a private organization where we will design, manufacture, supply, maintain and we will have financing backing us, and we will try for an TCO parity. Second, which is mostly the PM e-Bus Sewa tenders and other government tenders, we will form a consortium where we'll have a lead operator who will have the lead bidder in this. We will stay focused on our core of design, manufacture, supply and maintain this vehicle and give them uptime from all the experience that we have gathered over the last 4 years. So to summarize, we've got product portfolio enhancement. We've got a customer engagement enhancement. We have customer support mechanism enhancement. We are working on a quality journey, and we are working on a financial turnaround. With this, we are set out for the objectives that we have set it for. Thank you so much.

So we are now moving to small commercial vehicles. May I please invite Pinaki Haldar, who's the Head of the SCV business to kindly come on stage.

Yes. So multiple people have actually told me that this is the session that you guys are actually looking forward to the most. So no pressure that ways. Look, last year was a tough year, okay? And this was one of the businesses that Girish, in his slides, you would have seen a red dot against this business. First thing is that the industry degrew by 3%. Now if I were to talk about the last 3-year CAGR, the number would be in a similar ballpark, okay? The second thing is that you would notice that the salience of SCV actually went down further from 35% to 32%. We are the undisputed leaders in the SCV space, right? So any reduction in the saliency of this particular segment impacts our overall shares. Second, there is a lot of -- the competitive intensity in this entire space actually went up. There were around 8 to 9 significant product launches that happened across this space. And these 2 things combined to impact our overall shares, which went down by 300 basis points. As we look ahead, okay, the tailwinds that we see is that the domestic consumption is expected to grow by 6% to 7%, fueled by the GDP growth, right? So that's good for the industry. Second, we see momentum being there in the e-commerce organized and the captive space. Now that's a huge opportunity that we kind of look forward to. When I talk about the emerging themes, there are broadly 3, okay? One is the saliency of SCVs actually going down, which I just spoke about. But more than SCV saliency shifting from SCV to pickups, it is more about SCV saliency shifting from SCVs to 3-wheelers, specifically the e-3-wheelers. Second, we see that the saliency of alternate fuels, bi-fuel CNG going up, okay? Also, the saliency of the e-SCVs or the electric space also going up, okay? And this actually plays to our advantage going forward because we happen to be the leaders in the bi-fuel CNG space. We also happen to be the leaders in the e-SCV space, right? So that's a good thing for us going forward. Now given this context, what is it that we are focusing on? 4 broad areas. The first is that we are going to focus on sustaining and consolidating our leadership in the SCV space. Now each of these 4 areas, I'm going to talk more about in my subsequent slides, so I'm not dwelling too much into the details on this slide, right? Just the broad top lines. For SCV, what we are doing is that we are making certain interventions in the product space so that we are able to increase the -- improve the competitiveness of the SCV range. Second, we are about to launch the ACE Pro series, which is positioned between ACE and the 3-wheelers, and we are extremely excited about this particular launch, which is going to happen later this month. Second, in pickups, we intend to grow our market share in pickups. And for that, we are doing 2 things: One is that we have made certain product intervention in our Intra range, and we are also focusing on repositioning Intra to drive consideration. And I'm going to talk more about this. Third, drive EV adoption, right? Expansion, so what we are going to do is that we are going to expand the product range in the EV space, where we are the leaders at this point of time, but this is going to help us consolidate our leadership in the EV space. And also, we are engaging with all our stakeholders to increase the adoption of EVs across applications, right? And the fourth is that we are focusing on the entire 360-degree approach to the business by focusing on not just the product piece, but also on the service piece, on the network piece and also in terms of ensuring that the financial ecosystem is developed in a much more better and cohesive way. SCV space, okay? Now the biggest shift that happened in the SCV space was when we moved from BS-IV to BS-VI and, subsequently, to BS-VI Phase II. If you look at the left side of the slide, you will see that costs and, consequently, the prices went up across segments. But the worst impact or the most impacted was the SCV space, where the costs and the prices went up by 50%, okay? Now this is a space, which is dominated by the first-time users, okay? And for the first-time users, the acquisition cost actually matters a lot, right? And hence, some of the shift that you see from SCV to 3-wheelers. In addition to that, there is another development, significant development that happened last year was that the RBI actually made the NPA rules much more stringent for the NBFCs, right? Which again impacted the first-time users, right? Because now the NBFCs are much more stricter in terms of the loans that they are rolling out, okay? So -- and on top of all this, we see that in terms of the freight rates, the freight rates did not go up as much, okay? So the costs went up. It became more difficult for the FTUs to get financing and the freight rates did not go up, right? So it combined to create a kind of perfect storm. But there are certain things that we have done. There are certain things that we intend to do, okay? Now let me come to that part. First thing that we did was to increase the payload capacity of our ACE range, okay? That helps in terms of increased revenue from the -- for the customers. Second, we have launched the ACE bi-fuel, and this has helped us significantly in terms of gaining shares. Third, if I talk about the diesel powertrain in ACE, there are certain significant product interventions that we intend to make this year starting Q2 of this year. So one product launch will happen in Q2, product launch will happen in Q4 of this year. This should help us big time in the diesel space where we have lost share significantly. Now coming to the big launch, okay? So ACE Pro is getting launched later this month. And let me talk a little bit more about why this launch is so significant? See, we are launching ACE Pro in 3 variants: petrol, bi-fuel and EVs. And this is going to get positioned between ACE and the 3-wheeler space, which is going to kind of address a certain white space in the entire business that we kind of -- that kind of got created when we migrated from BS-IV to BS-VI, okay? So this should help us grow, and this should help this space in the industry grow as well, okay? Now there are certain key attributes of this particular product, which make it industry-leading. First is that it has industry-leading payload capacity. It is the industry-leading range from an EV standpoint. It is the best-in-class in terms of safety; and also in terms of cabin comfort, it is the best-in-class, right? So we are extremely excited about this particular launch. And now we are going to play an AV, just go through the AV and then I'll talk a little bit more. [Presentation]

Now look, the gentleman that you heard speaking or talking in this AV are the senior leadership of the top financiers, okay? We actually got them together a month back to give them a sneak peek of the products, and they were extremely excited, right? That kind of gives us a lot of heart that this product is actually going to make a difference. Now let me talk about the pickup space, okay? We regularly do a lot of consumer research, right, qualitative, quantitative. And there are quite a few things that actually came out of it. The 3 things that we picked up to impact this year are these 3. First is we saw an opportunity in terms of creating or improving the consideration of Intra range. Awareness is pretty high, but consideration is actually extremely low, right? So this is one area that we picked up to make an impact. The second is that it clearly comes out that compared to our competition, our service network in the country and rural markets is something that we need to work on, okay? The third thing is that the resale value of Intra, certain variants of Intra are not good, are not up to the mark. These are the 3 things that we decided to impact on this year. First thing that we did is that we have improved the product lineup of Intra. We have strengthened it by relaunching Intra as Intra Gold series in the V50 and the V70 range by increasing the payload capacity, pricing it very aggressively and also with higher warranty, okay? The second thing is that we have launched this Intra Valon Ki Suno campaign across ATL, BTL and digital media, which should help us with improvement in the consideration set. And the initial response is pretty encouraging, right? So it is in a way working. Now we'll have to wait and see in terms of that translating into market shares. But even in terms of market share, the last couple of months for pickups have been good for us, right? The second, strengthening the service network by empaneling local mechanics. Now what we have done is that from practically nothing, we now have 2,400-odd StarGurus. Now StarGurus are nothing, but local mechanics who have been taken through a rigorous selection process and a rigorous training process as well so that they can act as an extended arm of our dealer service infra and the TASS, right? So -- and honestly, there is a long way to go. But if I see whether we have made progress, we have made progress, okay? Third is that we are now kind of empaneling our dealers who are associated with us with Tata OK, to make bids, make bids in auctions along with brokers so that any delinquent vehicle with the financials, they can actually bid and take it and that kind of helps the resale value. Now let's play the Intra AVs. [Presentation]

Look, we believe that this campaign should help break some myths that are there in the market in terms of the product, right? And as I mentioned, the initial response is pretty good. Moving on to electrification. Now this space is actually very close to our heart because we help create this space. We created this space, and we still are the leaders in this space. And this segment had gained significant momentum, right? But that momentum kind of slowed down when the FAME subsidy was withdrawn last year, okay? And that did not help because all the plans were based on that being there. Now what we are doing is that we are expanding the entire EV range. So ACE Pro EV, ACE Pro has an EV variant, as I mentioned. ACE Pro EV is going to be priced lower than ACE, and it is going to be priced around 25% to 30% lower than ACE. And we are also going to launch a higher payload pickup in EVs, which is going to come down the line this year. This will ensure that we have the most complete range of products in the EV space. No other company will have the kind of range that we will have to cover all possible applications, right? So this is something that we are extremely excited about. And what makes us so excited about this is that we already have 100-plus corporate accounts. We are already participating with 15-plus municipal corporations. We have 2,500-plus retail accounts. Now these retail accounts are not individual customers. These retail accounts are captive customers, right? So with this customer base being there, this expanded product range is definitely going to help us is what we believe. In addition to that, we have tried to work on the financial ecosystem, specifically for EVs by empaneling a lot of fintech companies with tailor-made financial offerings for our customers. And that we believe is also going to add to the positivity. We have expanded our service support network from around 150 to close to 200, and we'll continue to work on this going forward. 360-degree ecosystem development. One of the things that Girish mentioned in his presentation is that the dealer profitability is one area where we are focusing a lot, okay? And there's a lot of good work that has happened in the last 9 to 12 months. And as a result, today, this business line, profitability from this business line for our dealers happens to be one of the highest, right? So there is significant progress that we have made in this particular area. Secondly, there is a lot that is happening from a financial ecosystem perspective. Now almost 70% of our business actually goes through the DFMs. DFMs are Dealer Finance Managers so that the right customer profile is allocated to the right financial so that we are not dropping any cases. We are not dropping any leads, right? So that is starting to show some positive traction. Secondly, we are also focusing on the financial health by ensuring that the sourcing of the customers is of better financial profile, okay? Third is that we are improving our rural outreach. We have tied up with a lot of rural Gramin banks across the country, and we are continuously expanding this profile of financials, right? And we believe this is going to help us with time. And there is a lot of tech-led CV financing process management that is happening, right? Third is the service experience, right? I spoke about the StarGurus and the need for a lot of work to happen in this space. We intend to double the network of StarGurus this year. From 2,400, we want to get to close to 5,000, right? That should cover a lot of the tehsil level clusters and the markets that are unmanned today, okay? We have this month launched the roadside assistance as well. And roadside assistance, complementing the Kavach accident repair initiative that we have should go a big time -- should go a long way in terms of building confidence around Tata SCVs and PUs for our customers. And we are also figuring out ways of reducing the maintenance cost, right? So these are the things that we are going to work on this year. Now the question on top of your mind would be, is this going to take us where we intend to be, where we aspire to be? The answer is no, okay? There is a lot of work that needs to happen to get us there. And if I were to articulate what is our aspiration in this space is that we want to be the top brand from a consumer preference standpoint across segments in this business. And that is going to mean a significant amount of intervention would need to happen in products, in processes and in building the right kind of capability within the system, within the organization. And this will not happen in 1 year or 2. This will be a multiyear strategy that we will be putting in place. But if you ask me what you saw today in the presentation, I believe that this is a very strong first step, okay, in the right direction, and you will see progress. Thank you so much. Yes. Next is Swami.

Good morning, everyone. I'm Swami, very privileged to lead our digital business at Tata Motors Commercial Vehicles. This year, I mean, the global logistics industry is about $11.23 trillion. India is about $250 billion. Now let just that sink in. I mean this is bigger than many economies put together in the world. Now for us, it's the lifeblood of our interconnected world. And for a commercial mobility company such as ours, this presents the biggest challenge and also the most profound opportunity, right? So about 150 trillion tonne kilometers that's being done in the world. 9% to 10% is the share of the global GDP. And India, we expect around 6.5% of growth, right? So now all of this put together also presents a lot of challenges. This massive market is fraught with a lot of unprecedented challenges. We're navigating a lot of complexities in this market. We, as customers, want speed and transparency, be it be micro mobility to large trucks crisscrossing the country. Everybody wants speed, transparency. They want to know where exactly the truck is, when will it arrive? Is it on time? Is it going to be delayed because there are ramifications across the ecosystem. Now there's also obviously geopolitical instabilities that can just redraw the entire supply chains in a matter of weeks. Add to that, cybersecurity. It's very important that in an increased connected world, vehicle, vehicle data, how they're moving across is all secure. The old mode of just moving from point A to point B is no longer what people want, right? So the biggest challenges in the industry are really about insufficient data visibilities across this ecosystem. It could be the simple trucker who wants to know, I don't want any breakdown of my vehicle. I want highest of efficiencies, highest of productivity, and I want to reach on time in a safe and secure manner comfortably. For the logistics providers, they want absolute on-time delivery. For the fleet owners, they want efficiency and productivity from their entire fleet and commitment to their customers to be met. There's also entire absence of contextual intelligence in this whole play. It's just starting to come up. There's a lot of cargo and fuel pilferage. I mean it might be interesting. I was in Middle East a couple of months back. A surprise, customers they were telling me that, oh, we've got fuel pilferage, it's a big problem here. Can you guys solve it for us? I mean who would have thought in economies where fuel costs are relatively low, that fuel pilferage is there. It's supposedly rampant. So there's huge pilferage that happens in the system. Downtime is something neither do the truckers nor do their owners, nor do their customers, shippers really like, right? And because of how the industry is siloed, there is really limited interoperability between various ecosystems, right? So these are all huge problems that we need to solve for. And this is precisely why I'm here today. Now think about all of this, these are not just obstacles, right? These are various invitations for us to innovate. They're really catalyst for how we at, Tata Motors Commercial Vehicles, want to transform the commercial mobility industry. Now what have we done? Now let me just very simply explain what this Truck and Trip Ecosystem is, right? For us, the way, we are in the business of selling commercial vehicles, trucks. So our users, be it the humble driver to the fleet owner, they want everything about the truck to be as good as possible. They want to know about the mileage. They want to know about the location. They want to know if something is going to fail. They don't want any unplanned downtime, right? They want instant access to spares, service so that their commitment to the customers is maintained. Now we sell a truck once, right? But these trucks do hundreds of trips every year. SCVs, Pinaki spoke about they'll be doing thousands of trips. They do multiple trips a day. So we are into both the Truck Ecosystem and our strategic investment in Freight Tiger into the Trip Ecosystem as well because it's not just a single solve that's going to solve the problem that the industry is facing, right? Starting from visibility, optimizing the vehicle, making sure all the trips are absolutely clean, data is available to shippers. Are the costs consistent? Are the costs improving? Is there productivity? That's a big solve for the industry. And that's the way we look at it in terms of -- and that's where our flagship fleet management system, Fleet Edge works along with Freight Tiger in terms of how we solve this for our customers. India is also a country where we've got not just India, globally as well, where a lot of partial truckloads and return truckloads that are empty. That's also a problem that needs to be solved because think about it. Somebody is moving from Mumbai to Hyderabad and does not have a return load on time. That's one empty truck plying, crisscrossing across the country, absolute waste of fuel, definitely not sustainable. So that's where playing into the Trip Ecosystem as well as carrier matching in terms of matching the supply and demand really comes into. Now what did we do last year? So early stages of Fleet Edge, it's just been a couple of years, right? So fantastic progress. Happy to share with you that the vehicles on our platform has grown by about 1.2x. Most important is engagement time because it's also new for an industry, a lot of things mushrooming. So customers are spending more time in understanding data about their vehicles, understanding how their vehicles are plying, understanding how their drivers are behaving, understanding the efficiency, understanding saying, okay, now that I've got all this data, how am I going to make more money? How am I going to satisfy my customer? So that for us was very important. More importantly, we had a 10x jump in our revenue and a 15 percentage point in our overall renewal improvements. In terms of one of our flagship products within Fleet Edge, what we call as Mileage Sarathi, there's been fantastic adoption. Well, an average of about 6.1%, there are customers who have experienced 20%. 20% across a fleet of about 400 vehicles, it's just fantastic. So for them, we analyze a lot of patterns with respect to there's an AI engine that actually drives this, be it the driving pattern analysis of the drivers, be it be benchmarking. We now know which lane these trucks are going, right? Compare it with all other trucks in that cohort, what kind of mileage are those trucks giving? Is it comparable to my fleet? Those are insights. So it could be, oh, in this lane between Mumbai and Ahmedabad, 6.1 in this heavy truck is possible because that's what our cohort data says. This insight is available to a fleet owner. They're going to question, oh, okay, why my drivers doing 5.1? What does it take to get to a 6 or from a 3 to a 4, whatever the number is. So those are the kind of insights. And most importantly for them, this translates into more than INR 1.5 lakh savings per vehicle. And we're super excited about it, right? Now overall, we've got very good reception on the platform and our customer retention is also improving in a good trajectory. Moving on, our strategic investment in the trip ecosystem with Freight Tiger is growing fantastic. So at the pan-India level, we're doing about 75 billion tonne kilometers today. We've got an ARPU of -- growth of about 40%. And carrier matching that I mentioned before is also doing very well. We've got a 200% growth in that. 600-plus customers, many of them marquee, huge enterprises in the country, right? There's also a domain play, be it the cement sector, be it the FMCG sector, et cetera. So Freight Tiger has penetrated about 15 different industries. And there's a lot of investment going on in terms of how this can be one of the industry-leading transport management system, not just for India but globally. So Digital Business, the way we think about it, like Girish mentioned, it not just is there to break the cyclicality of our commercial vehicle business. Of course, it will do that. But for us, it's also about how we leverage all of this data across the country and beyond. Now think about it, we are the #1 commercially connected vehicle in the country with more than -- it's close to about 830,000 as of today. We are by far the largest. So the visibility that we have about how the entire commercial vehicles are moving across the country is just fantastic. So all of this, we also use to feed it back to our core businesses, be it the vehicle utilization. Today, we're able to have a communication with our customers to say, "Hey, you know what, this is the kind of mileage that goes on this. And if you buy this vehicle with this mileage, this is the kind of profitability." We have data coming in from Fleet Edge, which we actually leverage to actually sell and communicate to our customer what it really means to them. We have micro-market level insights. Rajesh spoke about this micro-market strategy in terms of how we want to attack each micro-market. We deliver those insights to the core business and so that we understand what the needs are. Now think about it, right? So if there is heavy fleet usage in a particular part of India, there are insights that we can potentially derive that demand is going to spike up in this. So the correlations that we have done, right? And overall, for the customer, how do we drive TCUs with products such as Mileage Sarathi? For us, this is not just about a transport management system or a fleet management system or technology or digital for the sake of technology. This is really harnessing the power of data, digital, and our immense knowledge in the commercial vehicle industry to really build a much more intelligent, scalable, agile, profitable and a sustainable business for the future. With that, I'd like to play a small AV for you. [Presentation]

Like I said, super exciting for us to be in the Digital Business, and thank you.

So I was wondering how am I going to be different than the others. So I think the first point of difference is, I'm going to greet you as good afternoon, right? So the other piece, I think what's kind of going in my mind. Girish, during his conversation, had already introduced me. So I was wondering how am I going to be different now. So the only thing that came to my mind was Vikram and Betaal. You heard the 5 Vikrams. This is the Betaal that was sitting on the back and asking right questions and flew away whenever the questions were answered, right? So I think coming to a more serious note, the slide that you see, this summarizes clearly where the CV Business was and what is the step that it has taken to structurally transform over the past few years. All the leaders did stress on the fact, historically, the business was offtake-focused and having lower realization. We've pivoted the focus towards market share recorded based on retail, which is Vahan and measured our performance accordingly, thus clearly driving a shift in our approach and focus from a supply push to a more demand pull kind of a strategy. Business by nature has been cyclical, and this has kind of impacted our margin delivery in the past. Now with the increased focus on the downstream and digital businesses, we are able to hedge this cyclicity and deliver consistent financial performance. Our continued focus and rigor on improvement in material margin, mix, realization, working capital efficiency has kind of helped us achieve a double-digit EBITDA margin. And this, coupled with disciplined CapEx spending, has helped us improve our ROCE and also deliver our deleveraging strategy through strong cash flows. Moving on, this is a slide that completely summarizes our financial fitness journey that we've had from FY '21 until FY '25. I'll probably draw your attention to the top box. In FY '25, we delivered a revenue of INR 75,000 crores with an EBITDA of 11.8% and an EBIT of around 9.1%. Over the last 5 years, our EBITDA and EBIT has kind of grown by 400 bps to 500 bps. But what is worthy of a call-out is the velocity with which EBITDA has kind of improved over the last 3 years between FY '23 to '25, where the revenue has been more or less in range. In FY '25, we kind of delivered the highest PBT of INR 6,600 crores and also the highest cash flow of INR 7,400 crores. Our CapEx allocation has been very disciplined and focused. The last box on the right side, which is ROCE, is pretty strong at 38%. Way forward, we will continue to deliver on ROCE without hampering on growth. As we kind of look forward to the next couple of years, we will continue our journey to grow our traditional stream of revenue and continue to grow in market leadership in trucks and buses. You heard Rajesh, you heard Anand talk about it, and that's going to be a key area. In SUV, it is important for us to kind of regain our market share, win it back. Pinaki talked about it in detail, so I'll not dwell more into it at this point of time. With the PSM coming in, there is positive development that we are kind of seeing on that front. E-buses will be a key pillar of growth. With our renewed focus, which Anand spoke about, we will leverage the government and the private sector demand through an asset-light model. Our focus on noncyclical downstream and digital businesses continue to get stronger. We will continue to deliver value-creating revenue stream and a stronger margin. These revenue opportunities that we see in these 4 segments are the ones that will push our EBITDA margin journey from the current double digit to the teens. Coming to our path on teens EBITDA, the overall revenue will lead to higher proportion of growth. The noncyclical downstream and digital businesses being margin accretive, as you saw what Swami was talking about in terms of his opportunities and also have a low capital base. This will support us well in our EBITDA and ROCE journey. We are cost focused and we will continue to focus as we move forward from here on. Well, this is my last slide that kind of summarizes the outlook. Our focus will be to win back our share in SCV and PU segment with product intensity and customer value proposition while we continue to maintain and steadily outperform the industry in trucks and buses. Overall, we aspire to achieve a 40% market share and deliver market-beating revenue growth. The business will scale to teens EBITDA, and CapEx investment will continue to be disciplined without compromising on growth. So our level of investment will remain unchanged and will be in the range of 2% to 4% of revenue. The business will continue to deliver strong cash flows at 7% to 9% of revenue post tax and continue to sustain high ROCE and reduce the impact of volatility. That's all I had from my end. I know I was the last man standing between you and the Q&A and lunch, so hence, I ensured that I kind of finish on time and don't get a prompt from anyone. Thank you.

May I request Girish, Balaji, and the entire CV leadership team to come on stage?

So good afternoon, and let me do a quick introduction of the members of the leadership team who didn't present today. So of course, you know Rajendra Petkar, the Chief Technology Officer, my extreme right. Then Sitaram, he is the Chief Human Resource Officer. Beside Swami, it is Vishal, who is the Chief Manufacturing Officer; and then Jaykumar, who is the Chief Purchase Officer. So we are all set for the questions that you have.

This is Kumar Rakesh. My first question was on the SCV-PU segment. So the unit economics of that product had come down over the last few years, and then you had started improving that. So where does it stand today relative to other segments of products which you have? And as you are trying to accelerate the performance of that segment, will that have any impact on your profitability going forward?

Look, first of all, the growth that we plan to have in SCV-PU business is going to be sustainable and profitable, right? And we don't report each business individually. But then what I can tell you is that there is a certain plan that is there in place for this year. And yes, if the growth of SCV-PU business is faster than the other product lines, what implication it is going to have on the bottom line, I'll leave that to Girish and Ramanan to kind of answer. But what I can tell you is that the focus of SCV-PU business is going to be growth, grow market share sustainably and profitably, right? From a profitability standpoint, we have actually come a long way, right? And rest, I would leave to Girish and Ramanan to answer on the relative piece.

So see, I'll put it like this. If you remember, our small commercial vehicle portfolio used to enjoy this state of Uttarakhand benefits, right? And the sunset for that happened in 2017. I think whatever improvements we have done in the unit economics, we are now as healthy as we used to be with the incentives. So that's the response to the first question. A particular business growing having adverse or positive impact on the overall CV business, to some extent this may be possible, but as I mentioned, every business and every business head have their own growth aspiration, as also margin aspiration, right? So it won't have an impact to such an extent. So if you're hinting that whether we will run behind this market share at the cost of the overall profitability, no. I think we are in a very good space as far as profitability of this business is concerned. And Pinaki has clearly outlined how he's going to grow now. I think that's the focus.

Great. My second question was on the Fleet Edge, which you have been highlighting last year as well, and now you have 800,000 vehicles on the platform. And you are able to track a lot of behavior of the users on that. Is this helping you give some insight in terms of better product planning as well? If you can share some of the examples that would have helped you to create some niche or some differentiation in the product, which Fleet Edge insights are giving you.

So a couple of things that are happening, one is in terms of mileage. So while there is a play in terms of how customers understand their vehicles' mileage, that is also giving us a lot of insights internally in terms of behavior of vehicles across the country, across different lanes in terms of what exactly is happening. Second is, in terms of how the vehicle is being used, what are the duty cycles, what are the potential failures, imminent failures that could happen, there is an insight that comes in terms of what should we be looking at. It could be based on what the driver is doing. It could be based on overloading. It could be a variety of reasons. But it gives us insights in terms of what exactly is happening across the park. Now all of this are actually fed into our product planning teams in terms of what exactly is happening. Similarly, on the entire EV ecosystem, be it be the Smart Mobility business, where there are a lot of vehicle insights that goes back to the business, or we've got very specific data logos on our EVs that actually tell us a lot about different temperatures, terrains, how the vehicle is behaving, how the battery is behaving, what is attributable to the driver, what is attributable to the ecosystem. Now all of this gets fed into the product planning. I'm not going to be able to comment on specific in terms of what exactly is translated into net new improvements because of the continuous process that happens within the organization. But these give you a glance of the kind of actionable insights that we derive for ourselves as the core business as well as for our customers to ensure there's more productivity.

I just want to add to what Swami is -- from the perspective of the business. See, Fleet Edge is something that we are using as a tool to improve the productivity for our end customer. And that's what is going to create a pull. So how are we going to do that? You must have seen all 3 of us talking about this Customer Success Center, ability to track the vehicles, preempt any issues in the vehicle and therefore address it. Therefore, it is going to help in not just track and trace. It's not just telematics per se. It's going to help in driver behavior, vehicle characteristics and therefore add value to the customer in terms of better productivity, more uptime. And that's what is going to give us the pull for this business.

So let me break it into 2 parts. One is I mentioned, first data we get is about utilization of fleets, okay? Every day morning, if I come to office, the first mail is around consolidated trucks, how are they used in different geographies, different applications, which are the ones which are firing, doing well, and therefore, you get an insight on where to put your focus on. And where is it that it's not doing as well? Therefore, what could be the approach you want to be tweaking in those. That's a broad level. Then it is n=1 specific to a customer, because every customer is unique. Therefore, what are the areas of improvement around driving behavior, change in vehicles, pattern load they are carrying, and if the return is not available, how do you use your resources in ensuring that there is some meat added in terms of adding business to them. So that is the basic part. There's a lot more data then extrapolated into a long-term product planning. So long-term product planning is, for example -- I'll just quote you an example. Largely, we've been having tippers, road construction tippers, okay, which move about a few hundred kilometers. So we have mining, which just moves about a few kilometers, high gradient, et cetera, et cetera, very difficult conditions, localized application, but then you have construction related. Largely, India was consuming 28 tonnes, moved to 35 tonnes post axle load increase, et cetera. Tata Motors got these insights that in 200-kilometer or 250-kilometer lead, let's say, a state like Uttar Pradesh or Maharashtra, where you move sand from riverbed applications or the stones, which help in building the road, et cetera., we worked on a product called 48-tonne. So from 35, adding 13 tonne additional to the gross vehicle weight, almost 10-tonne payload, because now India is almost rated load across. So we saw a lot of economics changing out of that. Now as you see worldwide, we have far higher share from tractor trailers. Rigid cargo is reducing. So this insight talks about how much utilization in tractors is shifting and therefore, what should be our next steps. So we have, as we speak, many product portfolios being added either in load axle shifting or various kinds of suspension, which allows more passing what we call as gross vehicle weight and therefore, add to the profitability. So long-term planning, a lot of it is based on the insights you get. So very meaningful. And what he added, Anand, on Customer Success Center, see, I have some of the customers. In fact, I visited one. They have put up success center in their office. So we have so far used in our plants, in our regional offices, area offices, but they have used in their premises. So they see that by applying Mileage Sarathi, which is, again, data coming from Fleet Edge, some are getting 6%, 7% improvement in mileage. Remember, cost of fuel is more than 50% in a vehicle, so 7% makes a whole lot of difference, as high as 4% to 5% better profit. So some of them are making either 1% or 2% or even less. So what are the next steps to be taken? So I have a customer, I don't want to name, but the customer tells me, I make from one vehicle at least INR 12,000 to INR 15,000 extra, okay? That's as high as 30% of the EMI. So that is the kind of value addition which is taking place through this. A little longer, but I think it makes some understanding.

Yes, we are seeing a lot of hands being raised, so we'll just request to restrict the question to one per participant. Yes, Chandru, go ahead.

This is Chandramouli from Goldman Sachs. So just maybe a 2-part question. First is on the CV Business. We've done very well on profitability over the past couple of years, very well on ROCE, but maybe slightly at the cost of volume growth. So post the demerger, I just want to understand, it's a very difficult community to balance, but would we be thinking about a difference in the way we manage volume, profitability and ROCE going forward? And sort of second part of the question is around the fleet connected solutions. So you did mention there's been 15 percentage points improvement in the renewal run rates on Freight Tiger. So I just want to understand what the absolute level of renewals is at this stage. Is it 40%, 50%, 30%? And also I think, the first year after sale of vehicle, this is free of cost to the customer. So if we were to exclude that, I just want to understand what the renewal rates would be at this stage on Freight Tiger.

Sure. I'll just take the second one first. So 2 parts to it. One is in terms of specific numbers at our heavy commercial vehicles, we've got more than about 65% renewal rates, okay? And this is all paid customers who are paying and renewing it, right? So that's the way we are looking at it. In the broader ecosystem, like we mentioned, again, just a small point of correction, these are renewals on Fleet Edge, not Freight Tiger, right? Fleet Edge is our connected commercial vehicle system. In the overall scheme of things, between last year and this year, we've seen an overall growth of about 15 percentage points improvement. But to a specific number, we're looking at about 65% in the heavy commercial vehicles, which is the biggest chunk of our fleets.

So Chandru, I'll take the first one, right? Margin versus market share, and happy that you asked this question because actually, I was being grilled during the break on this specific point. And I think what we have learned from this 30 months or so journey, I think it is going to be off margin and market share. So it is not either/or, number one. Number two, I think, see, margin is going to come from 2 things. One is how are we going to manage our cost structure. And while we have improved our cost structure as well over the last 2, 2.5 years, so you'll see that in our material margin going up, controlling the other expenses, employee cost as a percentage of revenue, so I think on all the metrics, we have improved, but we can clearly improve further. So there is a journey on further leaner cost structure, which will add to the margin. The second aspect of margin is going to come from realization. And that, I think, is we are going to leverage all that we have at our disposal in terms of innovative products, technology-led products, which are going to deliver increased value to the customer. And that, we will then decide how it is going to translate into both realization and market share. So I think the days of market share at the cost of profitability or discounting more is out of the way. And I'm actually responding on behalf of all the business heads who are, therefore, managing both these aspects, the leaner cost structure, which is being supported to them by Vishal, Jaykumar, Rajendra, and then n=1 realization while looking at the overall market share, which will come from the product superiority, the kind of service support we are going to give, and over and above all this, the huge benefit that we have due to the Fleet Edge. So I think this is going to be the journey going ahead and not at the cost of each other.

We'll just take one question from there.

I'm Kapil from Nomura. Sir, when I look at your presentation regarding all the metrics that you showed for the CV industry, most of them were looking positive. But the industry is still not seeing much growth in the last few months. So what is holding back the industry growth in your view? And do you see some of those factors changing this year? Because you've talked about a positive growth this year, whereas last year you were a bit more circumspect. So just want to hear your thoughts on that. And secondly on Ace Pro, what is the value proposition of this product, if you could talk about that? Is it the 3-wheeler owners who you are looking to convert upwards, upgrade them? That's it.

So Kapil, I'll take the first one and then request Pinaki to answer on Ace Pro. See, what is happening this year in terms of volumes, and let's go segment by segment, there is no issue in buses and vans and actually, they are growing. If we take trucks, for example, while at an overall level it is flat or, in fact, if you see, Vahan, because it's very important to see the registration data rather than wholesale. So registration, there is a decline, single-digit decline. And if you dissect this data, actually, the challenge is in North and in East, right? North, the challenge has been due to 2 main factors, if I may say so. One is due to this geopolitical uncertainty, the event that we had, right, last month. So that has put people on the back foot and they are just waiting. But I can tell you that the sentiment has picked up again during this month on this aspect. The second thing is in U.P., I think fresh set of projects, infrastructure projects are kind of yet to be rolled out. And therefore, that is another factor which is holding the demand to some extent. Now if you go to East, there is a specific factor which has impacted the demand in West Bengal, which is, again, our relationship with Bangladesh and whatever decisions the government has taken. So you'll not believe, almost 30-odd percent of vehicle movement in West Bengal is also dependent on what is going into Bangladesh, right? So this is another factor which has hurt. Otherwise, if you see West and South, by state if you see, they have either remained flat or growing. Now once these factors get behind us, you will see that the industry has grown -- industry will grow. And in fact, Q2, I'm quite positive, because last year, if you recollect, Q2 was very subdued post the elections because there was no decision making on new projects. So I expect Q2 to do well. I think in small vehicles, if I may say, even there, the Vahan registration has declined by small single digit. And this is essentially due to the financing environment. That is the main reason. And this is something which is across the country, not limited to a particular state, right? And that also, we believe that -- I mean, Pinaki actually explained in his talk about the RBI norms, et cetera, et cetera, which is making the financing environment a bit tougher. But I believe that generally, post 15th August, when the festive season comes up, I think this market picks up again. So that's something which is likely to happen. And therefore, I'm still positive on the single-digit volume growth for this year as of now. Pinaki, if you can...

See, based on the positioning plan that we have for Ace Pro, what it is going to do is that it is going to help us play in almost 40% to 50% of the e-3-wheeler space, okay? E-3-wheelers are almost 25% of the 3-wheeler business, TIV, right? So that gives us a decent size, a decent chunk of the e-3-wheeler space where we can potentially play. Secondly, even in the Ace zone, since it is between Ace and the 3-wheelers, there is a certain amount of business that we are losing to competition even in that Ace zone. It will help us fight competition better as well in that space. Now if I were to talk about the TCO and the revenue-generating opportunity, the TCOs are around 5% to 8% lower than the 3-wheelers, and the revenue-generating opportunity is going to be around 15% to 20% higher, right? So that kind of helps us in terms of gaining share there and expanding the TIV of the entire SCV space as well, right?

Kapil, just 1 more point on your first question. Balaji reminded me, I think the 50 bps drop in the interest rate by RBI is something which is going to also help significantly, immediately in trucks, et cetera, because the EMI goes down. It helps in small vehicles also, but I think more so in trucks, you will see the benefit being passed on and therefore, a percolating effect.

And adding on to what I said on that, the economics aside, the safety features of an Ace Pro compared to a 3-wheeler is significantly better for obvious reasons. And secondly, the cabin space and the comfort that the driver is going to enjoy, that is also significantly better, right? So these are add-ons to the economics.

I'll just hand over to Binay.

Binay from Morgan Stanley. My question is more on how to think about revenue growth. We talked about 2 things, 3% to 5% TIV industry growth. Could you give us a breakdown between trucks and buses in that? Secondly, we talked about noncyclical business ramping up, international spares, digital and downstream. So what percentage contribution do they have today? What is the percentage contribution you see going ahead?

So the 3% to 5% CAGR in TIV will also have some amount of tonnage shift. Some amount of tonnage shift is yet to happen. I mean, for example, take trucks, heavy commercial vehicles, the tractor penetration has now reached almost 1/3, right? And we believe -- I mean, if you go to Western Europe or, for that matter, North America, they have almost reached 40% to 50% depending on the country. So there is some upside there. And only one thing we have to keep in mind that actually when movement happens from rigid trucks to tractors, actually, it is a headwind for the revenue, because in the rigid truck, we sell the full truck and it's at a higher pricing as compared to that of tractor. But he has faced that in last 2 years where the tractor penetration used to be 10% has gone to 33%, but he's been able to grow the revenue. Now segment-wise, if you see, I mean, I won't give exact numbers, but it appears that buses and vans will have higher CAGR in terms of volumes, followed by the small commercial vehicles and trucks together, I will put will be at same amount of level. But will it be too low as compared to 3% to 5% of the entire portfolio? No, because buses and vans significance in terms of numbers is lower. So it will still be close to 3% to 5%. So that's what we see in terms of the segment-wise growth potential. Now coming to your question on the contribution of the noncyclical businesses. So it is -- I mean, if you see last year, it is somewhere around 17%. And here, I'm not including some of our international businesses like Tata Daewoo, right? But otherwise, this is at 17%. And the rate at which these businesses will grow will certainly be faster now than that of the product business, because the product businesses have remained kind of flat, right? And even if you grow at this 3% to 5% CAGR, the downstream businesses and the international business that is exports from India, I think all these businesses will grow faster than the main business. And our immediate milestone is to cross 20% of the overall revenue. That's what we are looking at.

Maybe one question...

Just to add 1 point. There's something which you do by design, okay? What could that be? If you look at the revenue share, okay, of the higher tonnage vehicles, tippers, which is also firing. If you recollect, I did mention mining has been a bit subdued. And post monsoons, we expect that to -- if you consciously play in that zone, where higher tonnage, higher revenue models and therefore, because they are high ticket, focus their growth share as compared to what is other routine models, so by design, you could play in that and grow your revenue also. So that adds to your top line as well.

Atul Mehra from Motilal Oswal Mutual Fund. So if you were to think about from a 3- to 5-year perspective, what are the initiatives we have in plan for growth? Like what is the aspirational growth at overall CV Business level for us from a 3- to 5-year perspective?

Actually, this was part of my presentation. And in fact, I spent time on this, what is the growth aspiration that we have laid out for 5 years, right? And followed by the individual businesses, also spoke about what they see as their growth aspirations. And finally, Ramanan also actually summarized it. He summarized it for 2 years. So he, in fact, laid out what is the kind of growth that we are looking for FY '27, whereas I laid out the plan right up to FY '30 in my presentation.

Raghu here from Nuvama. Sir, on the SCV business part, first-time users, rental companies, they constitute about more than 50% of the SCV demand. So on the financing side, do you think the issues, whatever steps you are taking, they address those issues? And also on the SCV, last year as per CM, the market share was 29%. So how do you see the journey back towards 40%? And how many years do you think it can take?

Look, in terms of the financing ecosystem, I think we have seen the worst of it already, okay? And whatever that I laid out in my presentation kind of takes care of that. Every initiative that we are kind of taking in terms of addressing the TIV of FTUs, the Ace Pro piece, I'm not going to talk again on that, but the Ace Pro launch is going to help us in terms of getting back a share of the market, which we had lost to 3-wheelers, right? Secondly, all the initiatives that we are taking in terms of the financial ecosystem part, which again, I spoke about in terms of getting more of the grameen banks on board, in terms of ensuring that we are also participating actively -- our network is participating actively in terms of ensuring the health of the portfolio of the financiers, in terms of partnering with more financiers, right? All this is going to help in terms of getting the right FTU customer also onboarded. You are right. I mean, we ended last year at around, say, 28.5%, 29% share at an overall level. The exit share in March was around 27%, 27.5% share. Now 27% to 28% is the range in which our share is kind of moving. And all the initiatives that I spoke about should help us see gain share from quarter 2 onwards, and we expect to end this year at around 100 to 150 basis points higher share, right, sequentially speaking.

Just to comment for a minute. I think we are acutely aware this is an urgent issue to be fixed, yes. At the same time, we are in no tearing hurry to somehow fix it. It has to be fixed correctly and it has to be fixed permanently. So hence, we will take our time and it has to be worked through the system. You have to get the financials right, you get the product right, you get the service system right, you get the profitability right. We are absolutely committed to do it. We are in no hurry. At the same time, we have a sense of urgency to do it. So I would want to differentiate between the 2. So hold us to account for the improvement and the journey of 40% that we pulled out there as a target for the entire CV Business won't happen without SCV firing. And the teens EBITDA won't happen if SCV profitability is not sorted in terms of it has to accretively mix, add to the whole lot. So we will do it right. We are not here for a quarter here or a quarter there. So be patient with us, because we are patient with ourselves, but we have a sense of urgency to fix it. There's a slight difference that we want to do. We want to do the right things fast, but results will follow, yes.

This is Sonal Gupta from HSBC Asset Management. One of the points you made on the truck side was the higher power-to-weight ratios. And I just wanted to understand a little bit more because I felt that this was some aspect where we have an advantage over our closest competitors. But still, our market share is like we can see has roughly been flattish in the SCV space. So I mean, like what sort of adoption are you seeing? Can you give us a sense of, I mean, how much is 6 cylinder for the industry and for you? And are we sort of gaining share there?

Okay, let me take you through the journey. Like I said, it started from 2017, moment we entered BS IV and some part of electronics we moved in, and then GST also came into effect. So all that came up and we changed our approach from 180 horsepower, which used to be the base model, to 230 as our base. And that too, even for 19-tonne kind of a product at 230 horsepower. So what did it do for us? And now that you said, nearest competitor, as against their maybe 220 or 230, we went up to 300, and now we have launched and launching in phases starting this month, 320 horsepower. So there is clearly a need to provide higher power-to-weight ratio, because it increases durability, it increases number of trips, it increases profitability because of the productivity increase. So in tippers, we haven't been flattish. We've grown about 1.5% over the last few, I would say, years. And tippers also, if I divide into 3 parts, one is clear cut mining where Tata Motors is leader by far, okay? Then there is a construction segment, again, which is road movement of soil or grit or sand and all that for construction material. Again, a good leadership position there. Then there's a third area, which is ready-mix concrete, stationary vehicle, okay? That is where you see the approach was to put in lightweight or less, 4-cylinder, like you say, less powered vehicles because these are stationary and it's more of a rental model and very different. So in that piece, it's been either flat, even though we have tweaked our approach, and we see a big time growth happening in that segment also. So then when you look at tractors, so tractors typically come the higher end, which is 6x4, would always have a 300 horsepower. We are not going to compromise come what may. Well, we aren't falling into this trap of getting and fixing it quickly sometimes by looking at competitor, discounting far higher because of sometimes 4-cylinder giving them cost advantage, et cetera, et cetera. What for us is clear and, going forward, strategically right is provide the right solution to the customers. And Fleet Edge data tells us, if I have a cement segment running across country from Rajasthan to Maharashtra or Rajasthan up north, so because that's the highest cement producer, we are not going to compromise, we will not provide any optimal or substandard solution even at the cost of volumes or market share or profitability, because customer profitability in long term matters a lot. So all this has translated into, therefore, shift towards higher tonnage, higher tonnage demands and which is why I said 2 things. In higher tonnage, higher revenue share, our market share is relatively higher than the ones which are low-revenue or low-cost vehicles and consciously done so because we have looked at the market share from the lens of profitability, starting with the customer and then us. And all our realizations are also firing in higher tonnage, okay? And you will see -- okay, let me add another thing. Our approach even in those low-power or you may say 180 4-cylinder kind of powered engine or 200-horsepower engine also shifting, because there are plans to look at even higher literage, higher power, higher talk there because we want to upgrade this entire segment to something what you see in Western world, higher power-to-weight ratio, because there's no solution or no quick fix on that front. You can sell temporarily a few thousand more but it's not sustainable. Therefore, that is the only possible solution in view of the fact that overall economics are working better for the customer and customer is able to make more profits. And GST scenario, seamless travel across states is also allowing us that. I hope that addresses.

Just to add a few sentences. See, power-to-weight ratio is very important in the Indian CV industry, but it is about which segment. And what Rajesh was alluding to is that heavy duty, higher payload and overload, very clearly, higher power-to-weight ratio makes sense. But lighter usage within city, rated load or more usage without load, that is return load, the higher power-to-weight ratio doesn't make sense below a particular level, and that is where we have to bring in 4-cylinder like you are referring to. Currently, in our portfolio of heavy trucks, almost 95% is with the higher power variant, but he has introduced the lower 4-cylinder variant in specific application that he was alluding to, like reinforced mix contract or applications with higher instances of no return load, where he has positioned 4-cylinder, has increased the market share. So I think we will see this dual behavior of the market. On the top end, there is a propensity to take more power-to-weight ratio. But at the same time, we have to create more efficient solutions for this lower end.

Just one more data point, if you could sort of share is like, I mean, like what's the average daily running for trucks, right? Like versus pre COVID, we've continued to see government has invested a lot on the highway side. So are we seeing the average daily run per kilometers going up? I mean, where are we?

So I think while we get this data on a daily basis, I don't want to quote it now, right, because we want to mature further in understanding this data. But I can tell you, over the last 24 months, I have seen daily running increasing by around 5% to 15% depending upon the segment. That's the increase which has happened.

This is Priya Ranjan from HDFC MF. So one question is on the investment side. So 2% to 4% investment is enough to regain market share, or because of the lower investment in the past, we have lost significant market share. So I just wanted to understand what is your thought on that. And second is on the Digital Business. We have been talking about the Digital Business for the last 4, 5 years now. And can we give some kind of monitorable what we have achieved so far and in terms of either revenue or profitability on...

Yes. So 2% to 4% -- because this is a range, I would say 2% is sufficient, 4% is more than sufficient. That's what I can tell you. I think we can easily manage within this range. See, for last quite a few years, we have not added any capacity, right? Our investments in our operations have been more towards safety, sustainability, new product introduction, right? But no new capacity increase. And we believe that's how it will be for a few more years to come. Our investments will be more into new products and new technologies, and therefore, 40% of the investment is happening on newer technologies, which may not have light of the day immediately next year, but still we are investing in that. Therefore, 2% to 4% is absolutely sufficient. Second, coming to Digital, I can tell you that the business that Swami spoke about the Fleet Edge business, which is the main business, and then there is a FleetVerse and E-Dukaan, et cetera, those financials we calculate in their main business like FleetVerse, et cetera, goes into the product businesses. FleetVerse is actually currently at a run rate of 3,500 vehicles being sold on FleetVerse. That means customers come to FleetVerse directly, configure the vehicle and then we serve it through the dealers, 3,500 vehicles. I think last year, we would have sold around 45,000 vehicles through FleetVerse, right? E-Dukaan, I told you, is part of our downstream business, parts and services. And there, there are 2 streams. One is ServiceNet through our workshops and second is RetailNet through the larger retail market. More than 50% of our retail business is now on E-Dukaan. Coming to Fleet Edge, I think this business is already EBITDA positive. In terms of revenue growth, monthly active usage, weekly active usage, et cetera, I think Swami has shared some data, it is growing. But not getting into those metrics. As I mentioned last year in Investor Day, we have our visibility set on getting to almost $1 billion in Fleet Edge plus Freight Tiger put together. And Swami has clearly broken this $1 billion into how much is he going to get from transactions, how much is he going to get from freight management, how much is he going to get from transport management system, and how much is he going to get from basic visibility, right? And he has broken down this plan and is clearly aiming towards $1 billion revenue by FY '30.

One last question is from the HR side. So do you cover -- I mean, do you take the surveys of your leadership team independently without sharing the data to the leadership team about the employee satisfaction or the leader satisfaction index? And if there is a negative aspect on, I mean, the leader satisfaction index, then what is the proper planning we do to either save the leadership or bring the new leadership and what kind of things you monitor on that front?

I don't know from which order, but we have -- so we have annual perception survey. So we run every December. And each of the leader gets a report on various questions. We have a standard questionnaire. And based on the question, so leader gets a report for themselves, their BU and up to TML, so that they can compare and see where they stand. And post the results, there is an action plan done, action workout done. And based on the action, we again monitor how they are moving in the next year. So it's not just based on one report, we move people. Apart from that, throughout the year, we have various initiatives like team touch points and roundtables. All these are formally captured and shared with the employee. And also our loop system, our performance management system also captures the behavior. So there are multiple data points which a manager and an employee both get on their behavior and performance.

Thank you, all the leaders for taking all the questions, and thanks, audience.

So good afternoon to all of you, and thanks for joining this session on PV and EV Business update. I'll be giving an overview for the next 45 minutes on the performance, future trends and how we are strategizing for future. But subsequent to my presentation, there will be sections which will focus on some of the key areas where you would be more curious to know, say, for example, service, EV mainstreaming, design and SDV, which is software-defined vehicle, which is really the jargon that you would be hearing these days. So as far as I'm concerned, my presentation will be more split into 3 parts. I'll first start with Tata Motors performance. It will cover, for the last few years, how we have been performing, what have been the hits and misses. And then I'll talk about the industry trends, regulation, size, segmental shifts, technology, how it is going to shape the future of Indian PV industry. And taking into account our own situation as well as the future industry trend, how we have planned for winning in the market. So that's what this presentation is going to be about. So let me start first with Tata Motors performance. And of course, we have to first talk about the industry. So FY '25, you would be reading in the newspapers that there has been a fair moderation in demand. If you really see, the dip that we had in FY '20 and '21 because of COVID, post that, we had 2 very strong years of growth because of pent-up demand of the 2 years of FY '20 and '21. But for the last 2 financial years, we have seen moderation. These have been single-digit growth. It was 8% in FY '24 and then it moderated further to just 2%. And underlying this demand is the segmental shift, which has been in favor of SUVs. We have seen in last 5 years, the SUV salience has increased from 29% to 55%. But of course, it has come at the cost of a decline in share of hatches and sedans, which from 46% in FY '20, it has come down to 24%. CNG segment has been a silent performer. So you hear about EVs, hybrids and all these powertrains, but nobody speaks about CNG, but this is the fastest-growing segment of powertrain option. This has grown by 35% in a market which has grown by just 2%. And I'll talk more about it when I cover my part, which is Tata Motors. And this has become actually the second largest powertrain. It has overtaken diesel. So CNG segment is really doing well with the growing CGD network. Coming to Tata Motors, our growth levers have been more around progressively expanding the portfolio. It has been around focusing on multi-powertrain strategy -- would not need this. So the chair is there here because I had sprained my ankle, so if I need, I'll sit on the chair, so pardon me for that, but I'm good as of now. So I was talking about multi-powertrain strategy. We believe that for each powertrain, there are distinct set of customers. And therefore, we have for each of our nameplate given petrol, diesel, CNG as well as electric, the widest range of powertrain. And just to give you an example of the success of that strategy let's say, for example, Punch or a Nexon, when we launched Punch, we were selling about 8,000 per month. And when we had the multi-powertrain option, which is CNG, electric, not diesel, but petrol, we are selling 16,000, 17,000 a month. So it has doubled. Similarly, Nexon in FY '20 was selling about 3,500, 4,000. Today, we sell about 16,000 with the multi-powertrain approach. So it is really working well, and it shows that giving multi-powertrain is not cannibalizing. It is -- there are very distinct customers for each of these powertrains. Network expansion has been a crucial lever for our 4.5x growth that we have seen since FY '20. A we had about 800 outlets in FY '20, it has grown to more than 1,400 now, where we have lagged was on the service side, which I'll talk about later on. So now coming to how we performed in segments, and I'll start with SUVs. SUV had always been, I would say, one big fraction of our sales. And last year also, the SUV portfolio was further strengthened with the launch of Curvv. And you'll see that we have industry-beating growth for several years now, 4, 5 years, including the last year. While we declined as a company by 3% in terms of volume, but in SUVs, we had industry-beating growth of 11%. Just to give you a reference, in FY '20, this number was less than 100,000 for us as far as SUV sales are concerned. It is today 433,000. Punch has been, I was just mentioning about Punch, it has become the #1 model in 2021 -- 2024 calendar year. And actually, it is in the fourth year since the launch, waiting for a refresh. Curvv, the India's first SUV coupe was launched. And then Nexon, despite the most intensely fought segment, where last year, especially, we saw a lot of discounting action, a lot of undercutting on price with new facelifts coming because of competition, this has continued to thrive. And this today also sells 15000-plus a month. So because of all these models, I think we have done well in the SUV segment. Where we had trouble was really the hatches and before I talk about hatches for us, it is important to understand the tale of two cities in the industry itself, where SUVs grew by 11%, while hatches declined by 13%. But for us, our decline was nearly 30%, as Balaji had also shown in one of the slides. And this was because both Altroz and Tiago were in their fifth year since the last intervention. Altroz was launched in 2020. Tiago had got the last refresh in 2020. So this was the fifth year, and therefore, we declined significantly. But the good news is that in Jan, when we launched the model year of Tiago 2025, remember, this is still not a mid-cycle enhancement, it got significant response from the market and already in quarter 4, we saw nearly 20% growth, and it is holding strong. Altroz MCE was launched last month. This year -- this month onward, the deliveries are going to start, a tremendous rise in bookings. So hatches are going to be our strength actually in this financial year because, of course, the low base of last year. But both Tiago as well as Altroz it is really showing that if you bring the features, the latest features that you're giving in SUVs, customers are responding to that. So we are very hopeful of both these products. CNG, as I mentioned, that industry grew by 35%, but we have been the fastest-growing player in this segment. We grew by nearly 53% and you can see in just 2 years since the time we entered this segment, we have grown from just 40,000-odd to 140,000 in these 2 years. And this has happened because of, one, the most disruptive innovation that we brought in the CNG segment through the twin-cylinder technology, which completely released the entire boot space, which was a big compromise for the customers. And we gave this offering in 4 products, right, from a Tiago to Tigor to Nexon. And we don't believe that beyond this segment, people are still ready to accept a CNG car, but we are very closely watching. This was our notion for Nexon also, but actually Nexon is the highest selling CNG car today for us. So things change as people from lower segment cars who are already using CNG when they upgrade, they might go for high segment cars also. Now after sales had been a blind spot for us in this growth phase. And it's important to lay some context here. See, as I said that we grew by 4.5x in our sales. And it was not that we did not plan for the commensurate or adequate service growth, we -- the blind spot was that we failed to identify the cities where things were going a bit under capacity. And it was 13 months, 14 months back that we realized that there were 21 hotspots cities where CPT was increasing, where cars were taking more than 3 days to get the car serviced. So based on those indicators, we identified these and also shifted our focus from just adding service centers to rather adding base and heavily on modernization of our workshop for flow and also that overall productivity also improves. Some significant work has been done, but I'll not steal the show from Siddharth, who's going to talk more in detail of what we have done here. But the other big issue was the repeat complaints, which was causing a lot of customer dissonance. And that was because of the new tech that we have been giving in the cars and therefore, adequate training, adequate tools for the technicians in the workshop to understand the fault and do the repair properly. I think this was also an area, a lot of work done, Siddharth will cover that. Roadside assistance. This is one area where we have done a lot of novel things just like a Zomato or a Swiggy you are able to see the ride partner on your phone, this is one comfort that we have given to our customers that when they seek for roadside assistance, they'll get a link and they will be able to see where the person is who's coming to give them help. Also, what we have done with the nearest dealers, we have tied up with them so that they can reach out and do on-site repair. And I'm very happy to share that on-site repair in case of roadside assistance is the benchmark today for us. This is an achievement for us in the last financial year itself. Overall, the impact has been great, 18% reduction in customer complaints and a 25% reduction in repeat visits. Talking about product maturity. So when we went for technology leapfrogging when we launched Nexon MCE Square in 2023 and then also Harrier MCE, we faced a lot of software integration issues. And therefore, we said we need to really learn from software companies as well as we had to put the right infra to ensure the software maturities. Of course, we were able to take care of the issues that we faced in those 2 products. But big work has happened in enhancing the infrastructure. The hardware-in-loop, software-in-loop, I think this is again Sven is going to cover in greater detail, but also strengthening the process of development. So a lot of new technology means that you have to revisit your product development process also how you're going to integrate these new technologies into your earlier mechanical systems and electrical systems. I think there's a lot of work which has happened here, but also significant work on the process capability within the manufacturing and the supplier side also. And thirdly, as the car is leaving from the factory and being received by the customers, there's a lot of things, there's logistics, there's how the car is being handed over by the logistics operator to the dealer, how the car has been kept by the dealer and before handing it over to the customer whether proper inspection has been done or not for all the aspects of the car. I think this process, again, in the last 1 year, has been made very robust. And this is something which I'm sure Siddharth is going to talk about it. Coming to EVs. Good news that we have been able to sustain our market leadership. In last financial year, we were at 55%. Some of the key highlights were we crossed the 200,000 cumulative sales of electric vehicles. Our cars have covered 8 billion kilometers. So we have 8 billion kilometers of information available to us for improving the reliability of our cars for knowing the charging pattern for helping the charge point operators to identify locations where they should be putting their charges for a better utilization. So a big asset that we have developed for ourselves. But having said that, we have dropped from 85%, 87% to 55%. And that is with the competition going up, which is a good thing because you don't want to be lone player in the market. But 2 things impacted us in a big way last year. One was the expiry of FAME II incentives. So fleet used to be nearly 15% of our sales which went down because of the discontinuation of FAME because this was a significant subsidy by the government of nearly INR 2.5 lakh per car. And also, there's a lot of negative coverage on electric vehicles in the first half. Globally, I'm saying, not only for India and a lot of debate around hybrid electric, which was good enough to confuse the customer of whether this was the right time for them to go for electric or not. It was only in the second half that you saw the revival of the electric vehicle as more players started coming. But all these headwinds led us to not only the market share loss, but also loss in volume. But a big part of this loss in volume, about 6,000, 7,000 was because of the fleet segment. While we lost on the market share, but we were doing certain fundamental actions to ensure that we don't lose track in sight of our leadership and market share growth in future. One, we strengthen the portfolio. We have a wide range of portfolio starting from INR 8 lakh to INR 22 lakh, which was the Curvv which we launched last financial year. So we gave more options to the customer. Every year, we have been ensuring that we keep bringing down the barriers to adoption and range has been a big one. And you have seen that first car that we launched electric vehicle that was with 100-kilometer range, which was Tigor EV, for the government and fleet. And then when we launched the first personal segment car, Nexon, it was with 200-kilometer, 230-kilometer range with 30-kilowatt hour battery. And just take Nexon, 3 years, 4 years down the line, we recently launched the 45-kilowatt hour giving 350-kilometer range or so, keeping the price the same. So that has been the journey. We have been enhancing the value proposition. We have been the only player, I would say, who has been also working in a very committed way on the mainstreaming of electric vehicles. And first, we started to open collaboration, one more in form of sharing the data of where the charges should be put with the charge point operators for their benefit and for our customers' benefit because if the charges are put at the right place, I think it is a win-win situation. But also in Open Collaboration 2.0, we put our skin in the game also in terms of putting our money and getting some exclusive benefits for our customers. But this is a big section, which will be covered by Balaje Rajan later on. Specifically coming to fleet segment. I think this was a sizable industry. Nearly 1,000 to 1,100, it was growing to nearly 1,500 per month also. Some of the big customers were in the phase of massive growth, and these were some of the e-hailing companies, and they were employee transport segment focused company who are only buying electric cars. they were like 60%, 65% of this market. But once the FAME incentive went away and these players also went into consolidation phase, some of them got into big drug. This has gone down significantly. And therefore, our focus last year has been to shift our focus to more small and midsized fleet operators. And therefore, you see the pie chart, which shows that the share of mid- and small operators have now been 67% of our sales as compared to 33% in the previous year. We have been enhancing the TCO proposition. So we have done a lot of cost reduction effort here, which has helped us completely offset the loss of FAME incentive. So we have been completely able to recover that discontinuation of FAME II incentive. On top of that, we have given additional warranty going up to INR 2 lakh with 5 years of warranty and all, which is the requirement of this segment. And also, for the big operators to ensure that their uptime was high, having, say, for example, 3,000 cars and so on, we gave support at the hub itself, service support. And these actions have helped us revive this segment despite the big players going away. And I'll talk about how we are going to further strengthen this segment. Now coming to industry trends. This is something which I had presented last year also. We maintained that by 2030, PV industry will be a 6-million market with a secular growth of 6% to 7%. And this will be -- the key drivers will be, of course, the high consumption household you're going to see rich and superrich people who really buy the cars grow 2x to 3x in the next 5 to 6 years. The per capita penetration is low. We know that it is only 32 cars per 1,000 population. Taking reference of China, we are very clear that this penetration is going to get into the 3-digit mark. And replacement cycles from 6 years replacement cycle, this has come down to 4 years. So these are the key drivers which will lead to this kind of a number. Segmental shifts we have been seeing, I talked about it. SUVs will further strengthen from 55% by 2030. It should stabilize around 60% is what we feel because one that most of the launch actions are going to happen in SUVs and there are new kind of body styles within SUVs are also coming, crossovers, coupes. MPV was also surprisingly growing after COVID. And this is something which we have been observing 2018, '19, I remember this used to be 5% of the industry. But as new models have got launched, we are seeing fragmentation of MPV segment itself. It gives more flexibility. People want to go for outdoor experience with their friends and families. And I think that is the reason why this is picking up. So you can clearly see an entry, mid- and high segment within MPV, which has been evolving over the last few years. And hatchback while it has come down sharply from 46% to 24%, we feel that this will stabilize at around 20%, which is still a very sizable industry of 1 million plus. Coming to regulations. This is going to play a big role as far as the powertrain mix is concerned. And the chart that you see, just to simplify, this shows how the CAFE, which is corporate average fuel efficiency, phase-wise is pushing the industry towards electrification. And the life is very difficult if you have -- don't have those penetration numbers because otherwise, you face the risk of penalty. CAFE I, there was no penalty. You could do without EVs also. CAFE II, which is the current phase, you require about 2% penetration to meet the requirement. CAFE III, which is being proposed by BEE currently requires you to go to 10% to 12%. And depending on the weight of the cars that our company is selling, it can also go to 15%. So therefore, there's a clear mandate for growing EV penetration to meet the targets. CNG will also be helpful. So some of the more emission-friendly technologies is also going to help. And therefore, this is going to shape powertrain mix in a big way. So that was more regulation. Tech-wise, car industry is seeing the decade of a big disruption on multiple fronts. It is becoming software on wheels. You'll be hearing about software-defined vehicles. We came with our title as we call it, Tata Intelligent Digital Architecture Layer in Harrier EV for the first time. And this is going to get covered again by Sven in detail. But autonomy, 5 years back, I remember in 2020, we felt that seriously, we should be thinking about, say, around 2030, but the pace at which the adoption has picked up, starting with high SUV segment and the way it is coming down in even the lower segment has been really very surprising, I would say, but this is picking up fast. The in-cabin experience really being amplified by smart cockpit experience, a lot of features and whether you are seeing the transparent mode that we recently showed in Harrier EV, which is a 540-degree view. And also, ability to see the full rearview using a camera-based rearview mirror is also picking. So a host of features, which will keep coming, and therefore, it will be very tech-led growth going forward as far as PV industry is concerned. So that was about the industry trend, size, segmental shift, technology, regulation, other 4 things that I talked about. So given our performance of the past, certain gaps that we have seen and the industry trends, what will be our strategy to win in the future and going forward. Long laundry list of things. And first and foremost is going to be strengthening the portfolio for the aspiration that we have in mind. And it will not be only adding the new nameplates, but timely product intervention for the current portfolio will be important. We'll have to act on certain structural levers to drive EV leadership. This will also really entail the ecosystem work that we'll have to do. Our brand needs to be made more powerful for greater consideration. That means desirability of the brand has to be lifted. Network, both on the sales side and more importantly on service side, has to be really pronounced to meet the aspiration that we have. And in the core, emerging technologies, especially STV and all, we'll have to lead the industry. And of course, the profitability numbers have to be delivered based on the industry benchmarks. And sustainability is also a big differentiator for us, and this will also remain the focus. So let me now talk about them one by one. So this year, hatches, which had been the biggest reason for our decline in market share as well as the volumes is getting now strengthened. Already both these products have been launched, the Tiago 2025 in Jan and Altroz MCE, we believe that we'll have a very strong double-digit growth in hatches while the industry is expected to decline in hatches. SUV portfolio, already I've shared with you that we had industry-beating growth last year. And that gets further strengthened with the launch of another new nameplate, which is Sierra, you would have seen outside the hall. It's going to be a very promising car available in, again, multi-powertrain option. And Harrier Safari gets multi-powertrain. See, the biggest weakness that we had in Harrier Safari was it was only diesel. And this comes with petrol now also, which will be launched in this financial year and electric also has been launched. So now it will get its multi-powertrain option. Therefore, it will not only help us improve our volumes, but also profitability. So, how the portfolio is going to look like in FY '30 to drive 1 million-plus volume for ourselves. We have the portfolio of these 8 products, as you see on the left top. There will be additional products, which is 7 of them, Sierra, 2 Avinya products, then we'll have a minimum 2, I'm saying minimum, there can be a third one also in ICE and we'll have 2 bespoke electric vehicles also in this period. So overall, it will be -- become a portfolio of 15 nameplates. Seven new nameplates will be launched starting this financial year and 23 facelifts and refreshes, as I said, because this is also very important for maintaining and also increasing our volumes. Now let me talk about EVs. First, short term. Short term means next 1 year, what we are going to do. See, it's very important to understand that electric vehicle industry from an industry of 1 or 2 products has now become 20 plus, as I had shown you in the earlier chart. And therefore, it is important to now understand this industry in parts. And you can clearly see that there are 3 segments -- subsegments which are emerging in the personal side. And of course, one is the fleet segment where big opportunity is available. Now entry segment, which are -- example products are Tiago Punch. This segment is emerging as a city car, right, because of the limitation of range. Typically, you get less than 250-kilometer range, real range. And this is being bought by people who are using this within the city or as a second or a third car in the family. This is the space it is occupying. And this is where our market share is 78%. The mid-segment is where the belly of the electric vehicle industry is where every player has positioned the product in this segment. This is typically INR 12 lakh to INR 20 lakh kind of a price point. And this is where our market share is low at 36%. But we have 2 very promising products here, Curvv and Nexon. And we are taking some significant action to improve and hit the sweet spot of price range and features in this financial year, which should lift our market share in this segment. High segment is the one where we have launched the Harrier. This is more than INR 20 lakh. This is where most of the barriers of electrification is taken care of. These cars are with more than 500-kilometer range. The mid segment is versatile enough to do intercity drives, but still residual barriers are left. So this is how are the different use cases of these 3 segments. We have 0% market share right now in the high segment. Just to give you a ratio of how much volume lies in these segments, it's about -- entry segment would be about 30%, mid-segment would be about 45%, and rest is now high, which is nearly 25%. So we are 0% in the high segment right now before the launch of Harrier, 36% in mid and 78% in entry. So it is imperative for us to enhance the value proposition of entry segment because this should expand. This is where a lot of demand lies. We have to take care of the residual barriers. So we are focusing on that work. So we are very confident that in mid-term to long term, we should come back to 50% market share with all these actions. Fleet segment, as I said, this was growing ahead, become 1,500 per month, it has come down to 500. One big reason is the big players going away. But there's a big market of nearly 25,000, 30,000 per month, which is all CNG. While electric has proven its value proposition better than diesel, but still, it is to prove itself stronger to a CNG proposition. This is where we are focusing on. And this year, we will bring a car, which gives dual option of either range or a price, which can take head on the CNG segment also. So this also we are very confident that we should be able to increase our volumes. This is what will serve us in the next 1 year to get back our market share and volumes. In long term, there are 2 broad areas which are going to be important. One is how we continue to have industry-leading products addressing all the barriers in each of the subsegments that I talked about and supported by even greater mainstreaming actions. Now when you see leading products, so far, you would have seen the same nameplates being extensively used what we also use in ICE, although we have a pure EV architecture, which is acti.ev that we developed, but we chose to keep the top heads the same. You will see in the next refresh, which is 18 months and beyond, bespoke EV products, and I have shown 2 of them covered under the red cloth. You'll get higher range. When I say higher range of 400 kilometers, the task is also in the entry segment. How we take the entry segment from current 250 kilometers to 350 kilometers and 400 kilometers, so that it becomes more versatile. Lower cost structure is very important because you need to come closer to price parity also while you're increasing the range. And it should be differentiated versus the ICE offering through being more tech forward, greater interior space than what you expect for the same footprint in the ICE world. On the mainstreaming actions, one would be to start focusing especially for the entry and mid-segment on Tier 2, Tier 3 markets. I think we need to drive awareness. We already have presence there. We have also extended our service offering in those markets. Now it is about driving confidence and awareness in this market, which is one of the main streaming actions that we are taking. Tata EV charging network, a lot of stuff is going to be spoken by Balaje Rajan, so I'll just hold it. You'll get a very detailed deep dive here. TATA.ev stores. We had started opening these stores from last financial year. This has been slightly on a slow path, but we believe that this year as the volumes increase, we have identified 50 cities. As the viability of those 50 cities who open TATA.ev store increases, we'll start opening them. And the last one is the resale value confidence. And again, this will be around having a proprietary valuation engine, health metrics of the vehicle and so on. And this, I think, also will be covered by Balaje. Now as I said, desirability of brand needs to be lifted. And for that, it's important that we keep ourself relatable to the new-generation buyers and lay the foundation for long-term growth. And first aspect will be in terms of understanding the new consumer trends, especially because from current 50% of your buyers being Gen Y and Gen Z, this is going to go up to 85% in FY '30. And therefore, how you connect your brand values with their values around sustainability, design, technology will be very important, and this is the connection that we will have to build. Engagement and experience is going to be important, one, that people need to engage and experience your products like you have seen for Harrier EV, and you'll see more of that for other products in the coming months and years also. But also every touch point experience has to be benchmark for us and service will be the big one. And the vision of what we are going to do there will be presented by Siddharth. And martech, leveraging martech for customer acquisition, prospect nurturing as well as ensuring that we are focusing on driving customer's lifetime value. In these 3 aspects, we are going to work on really driving the aspiration for our brand. As I said, network has to be in line with our aspiration. Sales outlet projection is something where we did not falter in the last 5 years. We did this very well. But we missed in terms of assessing the number of base and service centers that you would require. But more importantly, we missed the cities where this has to be experience more. This is something where we have modeled ourselves properly and will ensure that in both sales as well as on the service side, our plan is commensurate to the aspiration that we have for growth. Talking about the tech side towards -- transition towards software-defined vehicles, which is an imperative to deliver better customer experience, respond faster to the market in terms of delivering advanced features like ADAS, your car should be updatable not only in terms of software, but also if you want to give new features to the customers, customers should be able to do in-car personalization. I think this will be made possible through SDV. And your car should be like a digital hub, where there is seamless connectivity with the phone. I think this is a world where we are shifting towards. We have come with the title architecture for Harrier EV, but that is only one milestone. There's a next-gen SDV that we are working on, which Sven is going to cover in detail. Profitability, we are significantly behind the benchmark. We are very conscious of that. And the target would be to have 10% plus EBITDA for consolidated PV and EV business and also positive FCF for the consolidated PV and EV business. And the key levers that we'll be focusing on is definitely the scale, which I said has to move from 550,000-odd to 1 million plus. Mix both in terms of trim as well as model mix. So some of the product portfolio chart that you saw is also making our model mix rich going forward. And as far as margins are concerned, I think this engine of cost reduction in Tata Motors has been really working well. Every year, it is delivering 2% of revenue kind of a reduction and nearly 4% of the annual purchase value. So these 3 will be the key drivers of improving our margins. And then, as I said, that sustainability is going to be core to our competitive advantage. And I'm very happy to share that we have been really progressing well and very strongly on our sustainability commitments. Net Zero. Here, we have targeted 100% use of renewable energy in our operations by 2030. We are already at 47% mark. And this is where I'm very confident that we will hit the target much earlier than 2030. As far as water neutrality is concerned, this is one area where I see all the leaders in the back end being very, very charged up. They have done some tremendous work when it comes to recycling of what our rain water harvesting, on-site rain water charge -- recharge and nearly 120 million plus liters of water withdrawal has been reduced in FY '25. The third one is waste disposal to landfill. This also we have taken a target by 2030 and all sites are already approaching zero waste to landfill status. And again, here, I'm sure that we will be able to achieve this target also much before 2030. So we are progressing well on net zero, including the Scope 3, which is around the mix in favor of electric vehicle that is -- we are very committed to that. And circular economy, pioneering circular economy and preserving nature and biodiversity. There are very specific projects that we have identified. Last year, we had asked our sustainability head to present to you on sustainability, and this has really gone significantly ahead since the last year. So this was on sustainability, and actually, that brings to the end of my presentation. Thank you so much. Siddharth, over to you.

Good afternoon. I'm Siddharth. I lead the customer care function for Tata Motors passenger car. Today, I'm taking this opportunity to serve our vision for aftersales and transformation initiatives we have started to deliver to our vision. There are 3 factors that is driving our transformation for aftersales. Over the last 5 years, our service inflow has grown by 3x. At the same time, our network expansion has gone up by only 1.5x. Therefore, it is imperative for us to accelerate our network expansion. The second is, over the last couple of years, we have added products to our portfolio. There is a shift in technology, and that technology shift is cutting across the products, the features and the technology. Therefore, it is imperative to upgrade the service capability to match with the shift in the features and technology. Today, our customers are sophisticated, they're mature, and they expect a superior aftersales experience, which is low touch, convenient and empathetic. Our vision is to deliver best-in-class customer care experience with high quality and efficient service to elevate the ownership experience and therefore, leading to brand loyalty. Our transformation is anchored around 4 pillars: expanding the network pan-India with focus on a few selected cities, having a state-of-the-art facilities, workshops with processes and technologies that is backed up with availability of spare parts, and therefore, enhancing the workshop efficiency and the effectiveness. A process that is transparent, that is seamless and engaging with the customer, which is responsive as well and a seamless, quick, responsive roadside assistance to elevate the customer empathy. To deliver all these 3, we need to have a deep understanding and engagement with our dealer partners, working alongside them to elevate their profitability and hence, enhancing the channel strength. Last year, we focused on expanding our network. We adapted a very structured approach to expand our network. We shifted our focus from putting up workshop to service base. We have identified hotspot cities. Hotspot cities, the cities where the inflow has surpassed our expectations. So last year, we have expanded our service network by putting up 1,300 base pan-India. There are 21 hotspot cities where we have accelerated the expansion of service base by 700 numbers. This year, we are targeting to have 1,600 base pan-India. There are 21 -- sorry, 25 hotspot cities. Of course, there are 7 hotspot cities, which is getting carried forward from this year. And with this, our service capacity is going to stay ahead of the demand. We have expanded the network. The next is to focus on the infrastructure and the process layout. The picture in the screen is the real pictures of our workshops. We have upgraded the workshop infrastructure, the facilities and the ambience to deliver a premium customer experience. Over the last 1 year, we have upgraded around 150 of our workshops to the state-of-the-art facility. While upgrading the infrastructure, we also reengineered the workshop layout to enhance the workshop efficiency and therefore, the productivity. We expanded the network. We upgraded the infra. We upgraded the processes. The manual process and low process visibility is actually impacting the lead time and therefore, the quality. So we started focusing on the process excellence. We leveraged Kaizen to improve the workshop processes. We emphasized on digitalization to again support the efficiency. While doing that, we also focused on automation. Recently, we delivered automated predelivery inspection process. This is a beautiful piece of work where we just need to plug in one device to the car and the car gets checked automatically. We expanded the network, upgraded the infra, have the technology to deliver best-in-class service. But this can take us so far. Having a capable workforce is an imperative. We have created a centralized command center, which is connected to our workshop on a real-time basis. From that command center, we are providing technical assistance to -- should any technician need support on real-time basis. And in fact, this workshop is -- this command center is capable to do remote assist support. Over the last 1 year, we have also expanded our regional training centers. We conducted training melas, and those are real mega training melas, and we have delivered around 4.5 lakh hours of training, which is a benchmark in itself. Let me take a pause over here. Now think of me driving with my family and my car gets break down. The first thing that will happen to me is my anxiety will run high. So we thought to take this advantage and take this as an opportunity to emphasize our commitment for the customer. We revamped our roadside assistance process. The new roadside assistance process we have is technologically enabled. It is having features like now we can see the expected time of arrival, in the map we can see where the rescue is and so on and so forth. Now we have solved that piece. Now let me again go back to the story. Now I know where the rescue is. I know my expected time of arrival of the rescue is 30 minutes. Therefore, my next expectation would be, can my car get fixed over here so that I'll continue my onward journey. So again, we focused on doing on-site repair. We have collaborated with our dealer partners on selected route and the on-site repair, what we are providing now is best-in-class. The initiatives I shared has also helped us improving our KPIs significantly. The appreciation by our customers has gone up 20x over the last year. At the same time, the customer complaints has also seen a significant decline, and it has reduced by 18%. These KPIs are also backed up with a few operational KPIs. Currently, we are servicing around 4.2 lakh car a month. Out of those 4.2 lakhs car, we are delivering 3.6 lakh cars in the same day. Therefore, our same-day delivery has seen an increase by 20% over the last year. Now while we are focusing on speed of service, we are cognizant of the fact that the quality should not be compromised. With the help of our command center, with the training, the technology enablement, there is a reduction in our revisit and repeat complaints. The revisit has gone down by 25% over the last year. While we have delivered the service KPIs, I understand the fact that this is just the beginning. We have our aspiration to deliver best-in-class service and how does that vision look like? We want to provide our customer access to service anywhere, anytime, a state-of-the-art infra and premium ambience at 100% of our workshops, adaptive workforce capable of solving complex problems across the technologies, proactive and personalized customer engagement across the ownership journey. Having said that, we are well on track to deliver to our vision. a vision to provide best-in-class customer service and making this our core competitive advantage. Thank you.

Good afternoon, everyone. My name is Balaje Rajan. I lead strategy for PV and EV businesses. So today, I'm going to talk about mainstreaming EVs. So this is not just about what we will do for mainstreaming EVs. It's very important for us to also look back and see how far we've come already in terms of mainstreaming EVs, where we are today, what the concerns still are and therefore, what is it that we're going to do about it? To start with, Tata Passenger Electric Mobility was formed on a very bold bet that EVs will go mainstream in India. So mainstreaming EVs is the, in many ways, you could say, the very purpose of our existence. And when we incorporated it in FY '22, the market was much smaller than what it is today. In fact, I remember when the first EVs we started making in 2019, the market was hardly 150, 200 units a month. It has scaled up nearly 70x since then. And it is also an imperative for Tata Passenger Electric Mobility to help India in its overall net zero journey because we strongly believe that electric vehicles are an imperative for the country as well. So mainstreaming EVs is of utmost importance to us at TPEM. And when we started our journey, as I mentioned, there were hardly any EVs being sold back in 2019. There were multiple barriers. Range anxiety. Everyone was always worried as to how far one can go in an EV. People thought EVs would probably travel 150, 200 kilometers at best. The cost of EVs were exorbitantly high compared to ICE, very limited choices, extremely non-aspirational body styles. And there was a lot of technology uncertainty. People are not sure how long the batteries would last. Would there be any residual value. Coupled with that, there was a complete lack of an EV ecosystem. There were hardly few hundred chargers. People didn't know where to find the chargers. They didn't know whether the chargers would be compatible. And at the same time, there was no supply chain either. So pretty much everything was imported and assembled here in India. So this was a very complex problem that we took on when the market was hardly 150, 200 units a month. And we have been holistically addressing all of these barriers over the last 5 to 6 years, starting with building a market for EVs. This involved actually raising awareness of what the benefits of EVs were, busting a lot of myths, advocating to all stakeholders, not just the government, but also suppliers, customer groups and ultimately creating a sales and service network for these EVs. Strengthening the EV value proposition. As we saw back then, EVs were very nonaspirational. We had to make the EVs aspirational. We had to give them a real range, and we had to bring price parity. And third was creating the enabling ecosystem in terms of not just the charging ecosystem, but also creating the local manufacturing ecosystem so that we can, in many ways, meet that price parity requirement. So in the next few slides, I'll very quickly run us through what is it that we have done, and we'll then quickly talk about where we are. In terms of myth busting, when we launched the Nexon EV, we showed that EVs can go anywhere. We drove them under -- in significant water wading conditions. We showed how they could climb inclines, how they could encounter any terrain that you might face in India. We drove it all the way from Kashmir to Kanyakumari to show not just that EVs can go anywhere, but charging is also possible, not just at home. And we also ran the Go.ev campaign where we took the Tiago EV and really communicated all the benefits of an EV. Beyond that, we've been promoting EV as a lifestyle. What we learned when we first started selling EVs is that sustainability was core to a certain set of people's beliefs. Our early customers were those who were sustainability-oriented, who already saw the benefits of also lower-cost sustainable products such as solar rooftops. So we really promoted the sustainability lifestyle through customer testimonials. We have a very successful community called the Evolve Community of early adopters of EVs who are evangelists as well. We brought them together, and we made them our evangelists who would go and talk about promoting EVs. There was also significant advocacy that was needed. Part of it was taking the pain points of the stakeholders and taking them to government, helping resolve things like, for example, home charging regulations, sharing our knowledge with the emerging ecosystem of charge point operators as well as many others, including suppliers so that they could make the right investments. Building awareness of EVs, not just with customers, but also regulators so that they don't misunderstand what it's needed to install charging or to run EVs safely. In addition, we also developed a pan-India sales and service network. Today, we have more than 230 cities where sales and service are available for EVs, TATA.evs and with over 1,100 sales touch points and 1,100 service base across the country. And as you know, we also have 7 exclusive TATA.ev stores. On the product side, we've been bringing a growing range of products with high real-world range. When we started in 2020 with the Nexon.ev, the best range that we could offer for ARAI-certified range was 312 kilometers. With the latest Harrier.ev, we have more than doubled that. And as you can see, every year, we've been coming with greater enhancements of range. And it's not just about the range, right, because cars are not just functional products. People also want more aspiration, more technology out of the vehicles. So we've been bringing in unique features that are not available in ICE so that more and more tech savvy and feature-seeking cohorts move towards EVs. We've also brought price parity to EVs. The Nexon prices that you see here are for the same trim Creative automatic version -- automatic petrol version versus the 45-kilowatt hour version of the EV. And as you can see, they're neck and neck. Recently, we announced the prices of the Harrier.ev. And as you can see, it is priced lower on the road than an entry automatic diesel. This price parity has come to us through significant localization, reduction in battery prices, reduction in non-cell-related prices as well as global drop in cell prices as well as some upward growth of ICE prices because of regulations. We also created a holistic charging ecosystem. Going back to when we first launched our EVs, we created 6 ways of charging. This was something that did not exist in India before we architected it. Starting with installing home charging with every EV purchase, which required significant coordination at a local level with local DISCOMs, with apartment communities, really codifying the process of installing home charging to providing innovative features like mobile charging where a car can come in and charge your car in case you needed a quick top-up to public charging at Tata dealers, at Tata outlets and also promotion of community charging. With all of this, till FY '23, we were able to grow what was barely about 100-odd chargers to over 5,000 chargers by FY '23. Until that time, we relied on the support of our Tata Universe as we call it, our Tata Group partners to really seed this ecosystem. At that point, we realized that a large number of private charge point operators were entering the charging game, and they needed a lot of insight to figure out where to put these chargers. They were anyway investing. The government had also allotted money to the oil marketing companies to invest. They all wanted to invest in charging, but they did not have the data to understand where the EV customers actually needed charging. So we created Open Collaboration 1.0, where we shared key insights of EV, EV owners and their journeys to identify where nationally are their white spots for charging installation. We had, at that time, insights to over 1 billion kilometers of EV usage data as well as through our connected car app, the ICE data. And comparing the 2, we knew where is it that our ICE customers were traveling, but our EV customers were hesitant to travel, primarily because of charging reasons. And so we identified those white spots. We also used this Open Collaboration to create awareness and advocacy so that the nearly 30-odd charge point operators that were operating across the country could all converge and agree on how to go about standardizing many of the experiences for EV owners. We also drove compatibility and interoperability so that when an EV pulls up at a charging station, there is no question of whether it would work or not. And you see some of our open collaboration partners. These are some of the largest CPO players in India. So just between 2023 and 2025, we have seen a massive growth. So public charging points grew from 5,500 to 22,000, which basically means 91% of national highways have a charger in a 50-kilometer radius, at least one charger in a 50-kilometer radius. Home charging points also grew very significantly, primarily in line with our own sales. And as you can see some verbatims from some of the key charge point operators, our insights helped curate this entire ecosystem. We also worked on digitally connecting the charging network in the country through our IRA.ev app. When you go outside into the pre-function area, you'll find the kiosks for the IRA.ev app as well. I'd encourage you to have a look at this particular feature there. We created a charge point aggregator where all the chargers in the country are visible. Their real-time status is known, and we're able to also understand the speed of the charger. Taking it to the next level, we created something called Tata.ev verified chargers. This was very important because in many places, especially in some of the fuel pumps, the charging gun was installed because of certain mandates, but it was never tended to. Or it wasn't in a well-lit area or it wasn't just compatible or it was always offline. So we created Tata.ev verified chargers where our team followed a nearly 50-point checklist to ensure that the location was safe, well lit. It had all the relevant amenities. The most important feature we realized when someone wants to charge is a clean washroom because what are you going to do when your car is charging, right? You're going to go refuel yourself, relieve yourself. So we ensured that all of these basic hygiene features that an EV owner would need are all there. And we have over 500 Tata.ev verified chargers. And this is something that is something that's unique to us. These .ev verified chargers, we're using it also as a tool for charge point operators to improve their own amenities so that they get the .ev verified tag. And we are already seeing that when a location is .ev verified, an EV user has a higher propensity, a significantly higher propensity to stop there as compared to another location where it's not .ev verified. We've also created a charging call center. Though we have a very strong digital suite of solutions available for charging, oftentimes, people don't want to invest that time. So we have a 1-800 number where people can call, they can help prepare someone for a long-distance journey or for that matter, they have an SOS situation. They are plugged into a random charger that's not working. Many of the chargers installed by some of the small-time charge point operators do not have any contact information. So we have taken on the responsibility of ensuring that the experience of charging is well maintained. Already, this is only about 2 months old. Already, we are helping over 600 customers every month. And we've also worked to integrate payments. Before we intervene, there were nearly 20 different charge-point operators with their own payment apps and people had to carry money in wallets. And this in itself was a detractor. And now we've created tap cards and UPI integration, a feature that we've just rolled out. Nearly 30 CPOs are in various stages onboarding the solution. This basically completely eliminates the anxiety of arriving at a charge point and suddenly needing to figure out which app to download, what to -- I mean, how much to load your wallet with, et cetera, because as you know, every single such handshake could come with a potential risk of failure. So these are some of the things that we did. And now as a result, charging is ubiquitous across most parts of India. There are about 22,000 public chargers. And as you can see in the map of India behind me, with the exception of certain states, pretty much everything is lit and the high-density lines that you see there are really the key arterial highways of the country. And some of the key stats that you can see up here, we have in about 7 or 8 key metros in every 5- to 7-kilometer radius, a fast charger. As I said, more than 90% of national highways have a charger in every 50-kilometer radius. 15-plus states have 95% coverage of chargers on all their national highways and over 90% of districts in India have at least 1 charger. And just again, comparative numbers, right, although one has to take it with a pinch of salt. If you see, people say there should be as many charging points as there are fuel pumps. Technically, you can charge your car in more than 2x the number of points today in India as you can fuel your car because every home that already has a charger installed is a charging point. And if I look at public charging points, 22,000 public charging points is nearly 3x the number of CNG stations. So when CNG is so popular, as Shailesh covered in his presentation, EVs technically should be even more popular. And while I would say the mainstream customer is still not fully convinced, the fact is those who see this are going everywhere with their cars. So very important to explain the graph on the left, every road that you see on this litina light orange or yellow is one where an EV has traveled in the last year. So EVs are going everywhere in India again with certain specific exceptions. And the funny thing is it doesn't look very different from where ICE vehicles travel as well. So already, those customers who are buying our EVs are comfortable taking these EVs everywhere. And there are a couple of really adventurous people whose journeys we have plotted, 5,900 kilometers in a single trip stretching several days on an Nexon EV, 6,400 kilometers in a Curve EV. Again, these are exceptionally adventurous people. But what's important is nearly 75% of people who own one of our EVs, use their EVs as their primary cars. And they go on at least one trip, which is more than 100 kilometers every month. So -- and some of the other stats that you see out here in terms of people who have driven more than 500 kilometers in a single trip, 40%. This number is not extremely off from what it is for ICE owners. Surely, not every ICE car is driven 500 kilometers regularly. And 77% of our EV owners have used public charging at least once. And what is remarkable is 15,000, which is approximately 7% of people who have bought our cars rely only on public charging. So public charging to me, therefore, is partly a question of sufficiency, but it's also partly a question of awareness because those who are aware, those who are comfortable don't see a concern today. And that's what explains that over 2 lakh individuals have trusted us to provide them with an EV. We have a community of more than 2 lakh customers now, many of them highly engaged part of our Evolve network. And as I said, nearly 75% of our customers use their EVs as their primary car. And what's more fascinating is nearly 1/3 of our customers have no ICE car at home. So this is the extent of confidence that they have in their EVs. So fine. So that should mean that EVs are mainstream, right? There should be no concerns. We wish. I think when we look at it, there are still a few residual concerns. One, charging infra awareness as we spoke of. 22,000 is a lot of chargers, but there is no awareness of it. Reliability is definitely a concern. Charging speed is another concern because the first generation of chargers that were put down, they were chargers that used to charge at 25-kilowatt hours or 50-kilowatt hours. And today, the vehicles have become much more capable, much more able to be fast charged and people don't want to charge with these relatively slower charging infra. Awareness of EV benefits is still an issue. I mean, even today, people don't fully realize or appreciate just the extent of running cost advantage of EVs and also how it can seamlessly fit into various use cases. Third, there is still a need for higher range and lower price offerings for medium buyers. And the last one is resale value. Now it's very interesting. We looked at people who walked in, inquired about an EV and ultimately did not buy an EV. And we also spoke to people who did not inquire about an EV at all. The folks who did not inquire about an EV at all, for them, the #1 issue was charging infra. But for the folks who came in, inquired and chose not to buy an EV, the #1 was still around the higher range, lower price and residual value. So clearly, we are seeing segments of customers evolving in terms of their knowledge. And if we look at it holistically, what do we need to work on? We need to first work on improving our product value proposition. Second, we need to work on increasing our sales and service network because EV sales even today is still bunched towards maybe about 100 locations in India. and with a disproportionate focus on the top 25-odd locations. And third is in terms of creating a very visible charging infrastructure and last, in terms of resale value. So let me just go through each of these quickly. First, and I won't spend too much time on product because Shailesh covered it completely. We have upcoming new launches, including the Harrier EV with segment-leading capabilities, which can really appeal to the feature seekers to the high-end buyers for whom we're also offering a great price parity as well. And it also comes with fundamentally new technology that's not available in ICE. So we believe aspirational buyers will flock towards some of these high-end products that we're bringing. Our products will continue to get refreshes. The products that you see there are just illustrative. Pretty much our entire portfolio will keep getting refreshed over a period of time with faster charging, more range, greater price parity driven by structural cost reduction. And finally, aspirational global products, Avinya range, but also the 2 products underneath the red clot that you see that would come in. These would be bespoke EVs that would set a new bar, and these would be world-class EVs with the next-generation software-defined vehicle technology that Sven will talk about a little while later. These products will be taken to even more locations across India. We said 230 locations is where we have EV sales and service today. Over the next 4, 5 years, we would want to get to 1,000 cities and towns. Answer is yes, India does have more than 1,000 cities and towns. It's actually around about 3,000 to 4,000. So we are talking about a very, very significant level of penetration across large urban agglomerations with exclusive manpower for EV sales and exclusive workshop base as well. We want to make sure that service and sales go hand-in-hand here. EV exclusive stores will also be scaled up as the demand shapes up for this in select cities. There is a minimum volume that we would need. How do we do this? We also do this with focused market development. It's not just sufficient for us to open an outlet and expect EVs to be sold there. We have a comprehensive playbook for opening a market. We've used this ever since we boldly went to sell Nexon EV in 30-odd cities in India back when there was really no demand. We build awareness and communicate value proposition to the customer segments that are most amenable to EVs. We conduct test drive campaigns. We create testimonials from people who are like those in our target segments. In addition, going forward, as we move to the lower-tier cities, we will need to come up with innovative financial products. We already tried something with rooftop solar integration, where someone could buy both the rooftop solar unit as well as an EV together. And literally, what outgo they have for their EMI is lower than what they would have for an ICE car EMI plus petrol. So we have such innovative products coming in as well, along with rooftop solar. And finally, local market charging infra development. While the charging infra may also exist, there is a lot of awareness development as well that needs to happen here. That, we believe, will help us further democratize the awareness of EV benefits. Next, let me talk about Open Collaboration 2.0. We spoke about open collaboration and its success in more than quadrupling the EV ecosystem in India. But when it comes to Open Collaboration 2.0, we are going after the gaps that customers still perceive, speed of charging, visibility of charging, seamlessness of charging. And therefore, we decided to put some skin in the game by incentivizing the top charge point operators to invest in very large-scale hubs for charging. When we spoke to customers, the early adopters were well traveled around the world. They saw that EV charging happened in parking lots. EV charging happened in malls, EV charging happened at home. But the mainstream customer still wants to see a giant edifice like a fuel station where they can pull in and quickly charge and get out. So therefore, we're investing in these mega chargers of 120-kilowatt hour plus -- 120 kilowatt hour -- sorry, 120-kilowatt plus charging capacity, where we can actually charge multiple vehicles, including our Harrier EV, which can charge in 20 minutes in one of these locations. These are designed for reliability. They will be 100% compliant and compatible with all our products. They will have all the amenities, including food, washroom. And they will also have 24/7 remote tech support, not just through our call center, but through a dedicated help desk. In select locations, we also want to have on-site support. When we spoke to certain customers, they told us that it gives us great comfort when there is someone like a fuel pump attendant who's there to talk to us. So that is well we are piloting in certain locations. The best part, it is open to everyone, but there is priority access for TATA.ev customers with 25% lower tariff. And all of this is integrated through our IRA.ev app. And this basically means for a Tata EV customer, it is very easy to plan their journey to eventually prebook a slot to prepay for it using UPI, show up their charge and keep effortlessly continuing with their journey. So this -- let me just go back before I talk about this, I think there is an AV on this. Let's just quickly run the AV, please. [Presentation]

So as you can see, there's a lot of familiarity with this format. And the most important aspect here is also it comes with the tap card. So even those who are not very technologically savvy can go in, tap in, fuel the card, keep going. It is designed with customer input, okay? As a first step, we intend to have about 300 of these by the end of this fiscal year. 11 are already live. We just announced it in -- at the end of Feb, and already, we have 11 up. Our goal is to start rolling out a couple of these every week so that we will have 300 by the end of the fiscal year. It will connect over 100 cities, all the key corridors. As you can see, these are the key corridors. So you can travel from Mumbai to Delhi, you can travel from, let's say, Chennai to Bangalore, Bangalore to Pune, et cetera. So all the key corridors are connected here. We will also have in key cities with the same format, several in-city chargers, especially in places like malls near key urban parking lots, et cetera, where we will, again, bring this level of experience. And of course, our other initiatives such as verified charging, dedicated charging call center and IRA.ev integration will all continue. While all of that is for FY '26, going forward, we really want to work towards quintupling the charging that we have here, public charging of 100,000 plus. So again, for perspective, 90,000 fuel pumps in India, we want to get to 100,000-plus public chargers, 1 million-plus home chargers. So there is absolutely no comparison to any other form of fueling in India, targeting 2,000-plus cities and towns. We are also advocating a right to charge so that there are no hassles by homeowner associations and commercial building landlords, et cetera, that would impede charging. We're going to deepen open collaboration as I said, by bringing greater focus on in-city charging solutions, doing a lot more joint promotions. It's a win-win when we do a promotion on a TATA.ev charger, plug-in charge solutions as well. We want to make it even more seamless. Why do you even have to tap? We know the car, we know the charger. Why can't you just connect the charger to the car and the car and charger talk to each other and deduct money and do this seamlessly on a postpaid basis. So that's also something that we're doing. And we're also going to grow our open collaboration with more charge point operators. In addition, smart charging solutions are something that we're bringing in. It's not just enough to offer charging. We want to make sure, going back to my first slide, India's net zero transition and also to Shailesh's last slide on sustainability, our own net zero. We want to make sure that renewable energy is bundled through all the charging solutions that are available, whether it's home charging, public charging. And we also want to integrate the transactions with in-car infotainment system. Today, you'll see in the kiosk, Drive Pay, which is the first such integration on Harrier.ev. We want to kind of make this even more seamless. Peer-to-peer charge sharing is something that we have in the future. So imagine those 1 million home chargers, even if a portion of them are peer-to-peer charged, then literally, you will have a charge point everywhere. And finally, innovative business models such as vehicle-to-vehicle charging, valet charging, valet charging is something where you're at work, you need someone to come pick up your car, charge it, bring it back. These are all innovative business models that we're working on. In addition, the last -- my last slide is on residual value. Once charging is resolved, the next question is on residual value. And on residual value, Shailesh already briefly spoke about this. There are 2 initiatives here. One is establishing residual value. The first set of EVs that we sold are just coming up for resale. And unlike the ICE car, where there is a significant level of tribal knowledge existing among various mechanics and used car dealers on EVs, frankly, it's a black box to all of them. We have taken this as an opportunity to bring unprecedented openness and transparency by creating a fair value for EVs. We have a model that runs on multiple parameters that we collect through the life of the vehicle. Our telematics data gives us great insights on the state of health, the charging trends for the car, the diagnostics of the motor, et cetera, really taking into account all the product wear and tear to arrive at a specific value, a Tata fair value for an EV. So this is one part of the equation. The second part of the equation is building the market for it. Here, we will work with third parties such as some of the used car apps and used car dealers to create a resale market because there is also a significant level of customer understanding that needs to be created and also a lot of local customer service that needs to be done. While we create that, there are going to be apprehensions with respect to purchasing a used EV. So to address that, we're also coming up with certain refurbishment guides and also exploring things like, for example, extended warranties to ensure that the second buyer also feels assured. And in addition, one of the other important things is that we find that a vast majority of people, when I say vast majority, I mean an overwhelming majority, 90-plus percent of EV owners don't want to ever go back to an ICE. So really, we need to offer an upgrade opportunity for those early adopters who already came into our fold. So we're also creating an EV upgrade program so that there is a good pipeline of old EVs that are coming in and that go into this. So overall, these are all the initiatives that we're taking to ensure that EVs become more and more mainstream, and we fulfill our vision of mainstreaming EVs in India. So that's my last slide. Thank you very much. But let me again remind you, there are kiosks outside for IRA.eV as well as the charge point aggregator. So we'll request everyone to have a look at those. Thank you so much.

Thank you, Balaje, for those rich insights. So Shailesh and Balaje both spoke about the Harrier EV. It was launched last week. And we have a short video to play, which really showcases the true capabilities of this beautiful car. Can we have the AV please? [Presentation]

May I please request Martin Uhlarik to kindly come on stage. We now have the design session.

So hello, good afternoon. My name is Martin Uhlarik. I'm Head of Design for Tata Motors. I'm responsible for the 3 design studios that we have globally, in India, in Pune, in the U.K. and also in Italy. The design department caters to -- is many ways agnostic. It caters to all the business units up to this point. So we've been designing passenger vehicles, electric vehicles, commercial vehicles. And overall, it doesn't matter really what powertrain we design to do. Fundamentally, we're the custodian of the brand. So if you think about where we've been and to get to where we're going, we have to have a little bit of a look back at where we've been as a company. So over the roughly about 5 years, we've been in what we call the revive phase of design, where we've been taking all of our nameplates, which are brands in on themselves, and we've been overhauling them, refreshing them, making them more competitive from every angle. Design is not just the appearance and the looks, but it's how those brands communicate, how these nameplates communicate their values through technology, the right customer, through interior, through exterior. And all of it is holistic, how it comes together. So you can see things like the Tiago, the Altroz, which we just launched 2 weeks ago, which is a very comprehensive refresh. The Harrier.ev, which you've just seen that superb video and had a terrific launch. But pretty much every nameplate in the portfolio has undergone a significant refresh. This was all part of the revival. And like I said, we want to create aspirational products, products that are design-led, but not just an appearance in how the customer uses that. And of course, they have to also communicate safety. Safety isn't just a hygiene, but the design and the products have to communicate that they're safe, that they're sturdy, that they're competent, capable and authentic. So one of our DNA, one of our backbones in the design department is human-centric design. I think this is the real root of what good design is. It's not just superficial, but it ultimately identifies who the customer is. And what we do is we cater toward all demographics, all segments of the population. So we can design a product that's specific for Gen X, Gen Y, Gen Z or XYZ, if it needs to be. Now what does that mean? It means that the design team gets its inspiration from the customer. And at the same time, the customer gets its inspiration from the design team. So this sort of circular inspiration is really the backbone, constant information, constant knowledge in terms of what the customers want, whether it's demographics, age, geography, male, female, north, south, east, west, it doesn't matter. If you understand the psychology of the customer, you're going to design a successful product. That's really what it comes down to. You can apply this to any good design, whether it's an automotive product or any industrial product for that matter. So like I said, last 4, 5 years, we've been in this revival stage. And the revival stage will culminate with the launch of the Sierra. So you've seen the product outside in the viewing yard, and you see it here in the yellow. And it's really the revival of the ultimate icon in the portfolio. And that what will happen is actually that will precipitate the beginning of the next phase in our design DNA. And that's part of the ramp-up in terms of product development that we have over the next couple of years. Already, as we speak in the design studio, we are designing these new top hats. Design usually takes 24 to 36 months. So if you went into any of the 3 studios, you would see that there are products that are earmarked for a start of production for 2027, 2028, 2029. And then they have usually a 5- to 7-year life cycle. So if you go into the design studios, you are actually going into almost like a time travel aspect where you will see the future of the product. You will see what's on the road in 2030, 2035. And all of this has to be developed with real market intelligence and customer insights. So like I said, the Sierra is the beginning of the Thrive era. That's where the company and the portfolio really goes supersonic and goes full forward. And of course, the Avinya is the first product that we've teased. You saw that in the Bharat Mobility Show back in January, where you really see the full ambition of what the company aspires to. So as I was saying, the Sierra, this was a labor of love. We've been working on this for quite some time. We've teased it. We've shown it in different forms, whether it's EV or this ICE format. And this isn't no longer a preview. This is exactly what you will see on the road right down to the last millimeter. And good design isn't just an emotional first, first cut, big brush stroke. It really comes down to the details. There's a lot of blood, sweat and tears that goes into a good design. For me, the design is having the inspiration moment, having the big picture idea of what the product is, but then it's a meticulous attention to detail, whether it's the lamps, the technology, the interior, the stitching on the steering wheel and how all of that technology and how all of that PQ is personified in a singular product. I have no doubt that this is going to be actually a huge home run for the company once it's launched. And the other thing is it's a brand. This is the other thing that's important. The products individually are good products, well-designed products. But fundamentally, you're bringing a brand. Each of these nameplates is a brand and no brand is better personified than the Sierra. In many ways, it's the differentiator, which is going to separate us from the competition. In many ways, this is an emotional factor where the relationship between the customer and the brand and the customer and the product is differentiated. It's no longer just a well-designed product or a well-engineered product or a well-produced product. It has an emotional resonance. There's a story and anybody who is immediately interfacing with this vehicle is going to have some sort of connection with it. We always said this was Project XYZ internally that it appeals to Gen Xers, Gen Y, Gen Z. Gen Xers, the ones who remember it when they were young and they remember maybe their parents had it, but also to each different demographic. And it's also important to understand that India as a country is moving forward. Half the country is under 35. So it's very important to tap into the zeitgeist and understand what this next generation is aspiring to. So as I said, the next phase post Sierra, the first product, which we'll be working on and the first one we can really show you is the Avinya. This was the Avinya X, which is the second of the 2 products that we're planning to launch with it. And this really shows the full ambition that the company has. This is a premium born EV SUV. It is timeless, which is a key point in good design that these products will age with elegance. So the residual value for the customer in terms of ownership is always there. It is elegant. It has beauty and it is also a statement, a statement of intent, not only for us as far as Tata Motors is concerned, but also for the customer. It is -- look at me, look who I am, look where I've arrived, look where I'm going. And that attention to detail is everywhere in the product, whether it's any aspect of the exterior right down to the interior, the UX, UI, the comfort and also the customer experience that goes beyond the product itself. Now as I was saying, in design right now, we have around 9 programs happening, 9 full brand-new programs. So in many ways, all those sort of products, those silhouettes that you've seen earlier in the day, they're all actually being developed as we speak right now in all of our various studios. And design is an interesting profession in the sense that there's a lot of disciplines to it. There's exterior, interior, there's modeling, there's engineering. There's a sort of futurist attitude. We have a number of people who help us predict customer insights, customer needs. And this sort of black arts all gets put together with the production of sketches, models and ultimately with proposals that we review internally, we interrogate, we clinic them, we get the insights. And it's like a samurai sword. You have a design. Once you choose the theme, you essentially keep bending the steel. The more times you bend it, the more times you interrogate it internally, the stronger it gets and the better the design is. I think our track record is actually very strong over the last couple of years in terms of the fidelity that we design our products to. As you can see, most of these images and sketches are focusing on the Avinya X and the curve as just as examples of the design process. It's an art, but it's an applied art, and it's not a singular person who does it, but it's a team effort of a number of people who are working across many disciplines, harmonizing them and getting to work with one singular purpose. But ultimately, that purpose is to bring a relationship with the customer. The idea of a good brand is the relationship, how we tell a story and that the customer can see themselves within that brand, within that product and within that portfolio. That's ultimately what we're driving towards. So as I'm wrapping up, I'll say one thing is design is social science. And understanding this, and like I said, understanding the customer is the key moment. Up to now, we've always had this motto, this tagline that we have impact design. But actually, starting with 2026, we're moving forward with a new design sort of philosophy, which is called inspired design. And inspired means it's intelligent. So as I was saying, it focuses on the customer and has the right inputs. It's inspired itself, and it gets its inspiration from the customer, but it's also representative of India. This is a very big factor. The emotional factor is what's going to differentiate us from the competition, as I was saying. India is a lively country. It's a warm country. It's an inviting country. And it's not a boring country and neither are our products. At no point are we going to be designing boring products or products that are white goods. All of our products are going to engage and create an emotional resonance. So all I can say is I look forward to showing you this portfolio. I would love to pull back the curtain and show you what we have cooking in our studios, but you're just going to have to be patient and slowly, we'll show it to you. But I think we have utmost confidence that what we have coming forward is really going to excite you. Thank you.

So from bending steel to coating, I think it's, how to say, a huge jump. Also, that's why I brought a device with me. So ladies and gentlemen, imagine a vehicle that Martin just showed to us evolving over time, but not through bending steel, but through software, a vehicle that gets smarter, safer and much more efficient with every update, just like your smartphone. This, I think, is the promise of software-defined vehicles. This is the promise of SDV as we call it. Currently, we are all aware that SDV is really revolutionizing the automotive industry, shifting from a very hardware-centric design to software-driven innovation. And if you add this up with the fast enhancements of AI, cloud as well as connectivity and over-the-air updates, these vehicles of the future, I would not say future already today, really can enhance performance, enable autonomous driving and personalized user experience all through code. And therefore, for us, the future of mobility isn't just about horsepower. It's about computing power from electric vehicles to self-driving vehicles, SDVs, for sure, pave the way for a much more safe, more green and much more intelligent transportation. Today, I would like to shed some light on how we in Tata Motors envision the future of SDV era and how we, as Tata Motors already embarked on that journey. And this is not only about technology. It's really about transforming vehicles into connected and smart companions for an enriched customer journeys. This transformation for sure comes not without complexities. The challenge today is not really to add features. We all do it, but it's in orchestrating a seamless integration of hardware, software, connectivity as well as data intelligence. And this is precisely where we are investing with intent. While we gained a lot of ground, as Balaje mentioned before in EVs and also in tech led models like the Harrier.ev that you saw, we did run into some trouble, especially around software integration leading to glitches that overall impacted the customer experience of our customers. And as iterated by Shailesh, not only in this presentation, but also in front of the media, while we were able to fix them fast, the fix wasn't just technical, it was structural. Over the past few years, we've made strategic choices to bring software development much closer to our core as Tata Motors. On the one hand, we have adopted a very robust approach to system integration by creating dedicated central system integration software organization with software experts, not only from automotive, but also from the IT industry. Also, as we've seen before, we have heavily invested in specialized testing equipment for software and electronic features, be it hardware in the loop, software in the loop test benches or even full vehicle simulators. This really enables us to fast track development, but also to cover exhaustive used cases during development and the used cases are so vast at the automation behind that the real trigger on wide use upgrading of facilities is needed. We've also rolled out an updated software maturation process with early issue detection and wider test coverage and as Siddharth spoke about field software performance monitoring and continuous integration of feed tech from the field into our vehicle into our development phase is also part of the story. And last but not least, we are working closely with customer support to augment our service diagnostic capabilities at dealerships. And with that, we are convinced that this strong foundation gives us confidence to be ready to embark on the SDV journey. I think we all recall in the previous 6 era where vehicles had an average of 10+ distributed ECUs mainly delivering basic functionalities. Current vehicles like, Curve, Nexon both in ICE and EV are seeing almost 25+ distributed and connected ECUs working to deliver comprehensive experiences through an intelligent combination of functionalities. These vehicles today are already capable of firmware updates of control units. Our most recent launch, the Harrier.ev takes the game to an all new level. The so-called Tata Intelligent Digital Architecture Layer or t.idal, as we call it, enables us to really offer incremental functionality through domain centralization as well as OTA updates. Furthermore, our next generation of vehicles will be able to offer high-performance central compute through domain consolidation in easier words, we are trying to reduce the number of ECU and combine them in increasing the compute power. All of these stepping stones in our journey to our North Star, the so-called Next-Gen software-defined vehicles, where software really enables new features independent of the underlying hardware. And this software-first approach offers increased flexibility to unknown future requirements of our customers. While the beneficiary of this SDV future undoubtedly is our customer, this transformation for sure, is also rewarding to all stakeholders involved. In a nutshell, SDV offers scalability by enabling a centralized E&E architecture instead of isolated ECUs, features being defined by software without dependency on hardware allows an upward integration of software, achieving system-level efficiency as well as scalability. If you decouple software from hardware, SDV also offers much greater flexibility. This approach enables continuous updates, customization and new functionalities over the vehicle's life cycle. On top of that, SDV also offers unmatched agility through accelerated time to market. Agile development and continuous release of software improves end user experience. We can very quickly react to customer needs, even to needs customers at the launch of a product do not yet know and helping us to keep the product fresh during the life cycle. We aim -- with that, we aim also to accelerate mass production processes from planning and design to manufacturing by developing a unified hard as well as software platform. The software stacks are modular, will be used across multiple vehicle segments, streamlining the development time line, reducing complexity as well as lowering cost while enhancing the impact of SDV technologies. Platform standardization will, on top of that, boost the profitability by cutting development time as well as driving cost efficiencies. And continuously upgradable software, continuous upgradable products could also potentially unlock new revenue streams that we do not cater for today, offering data-driven services, feature on demand as just one example. With this immense potential of SDVs, it is really easy to get lost in all these possibilities. So it's really important to define what we as Tata Motors want and what matters to our customers. We, as Tata Motors, try to leverage the capabilities of SDV to really offer seamless vehicle ownership experience, always updatable, always connected and fully assisted. Our vehicles will offer seamless user experiences through a personalized and AI-powered content and a very intuitive, very self-speaking user interface opportunities also for cutting-edge displays as we saw it in Harrier.ev. Our vehicles will stay fresh and relevant forever with central compute platform, enabling dynamic over-the-air updates and feature upgrades throughout the life cycle. And as they will be always connected with 5G and beyond connectivity, it is also possible to integrate third-party as well as in-house app stores. And this really enables us to provide predictive maintenance services, leveraging the data to really further enhance the ownership experience and a much better value proposition. Due to our DNA, our products, our vehicles will continue to be the safest on Indian roads and with structural integrity being bolstered by India-specific ADAS solutions, ground-up designed, developed and validated by our in-house R&D teams. All these capabilities will be seamlessly integrated to provide a rich customer experience with focus on intelligent assistant, personalized entertainment, health and well-being solutions, large vision models that enable future services that we cannot think of today and connected services across payment, shopping as well as mobility and gaming, as you can see outside in the stores. All of this will be centered around our Tata Motors in-car AI assistant and this really represents a bold step towards autonomous connected and hyper-personalized driving experience. Now the technical backbone of that is t.idal. t.idal, Tata Intelligent Digital Architecture Layer is our first generation of domain consolidated SDV architecture, which was recently unveiled last week during Harrier.ev launch. With t.idal, let's call it 1.0 for the time, we have really managed to consolidate the entertainment and safety domains powered by respective compute, complemented by App Store and OTA updates via cloud. As Shailesh mentioned, this -- we are already embarked on the next generation of t.idal architecture, let's call it t.idal 2.0 for a while, which is based on further consolidation of compute, consolidation of the operating system and really delivering for the software guys in this room, a service-oriented architecture where the modularity of software is being enabled, fully enabled. This t.idal 2.0 SDV architecture will purely focus on best-in-class personalized user experience driven by off-board and onboard networks, deep learning and machine learning. So more or less AI also has a valid share in that. But the future of automotive innovation is not only about hardware and software, it's also about collaboration. Not a single company, Tata Motors, including can deliver the full potential of SDVs alone. Strategic partnerships, therefore, are the driving force behind this revolution. And in this exciting journey, I think there's no better place to be than in the middle of the Tata ecosystem. While on the one hand, we are rapidly increasing our in-house software competencies within the Tata Motors, we're also leveraging our group synergies by partnering with group companies, for example, Tata Consultancy Services, Tata Elxsi or Tata Technologies as strategic partners to really deliver our next-generation SDV architecture for software development. We are also in discussion with Tata Electronics to look at capitalizing upstream synergies for cost-effective and especially localized hardware capacity. And being the pioneers in India for the EV revolution in India also gives us the respective weight to discuss and partner up with global technology partners. We are partnering with them to really provide state-of-the-art solutions to our customers. This is just a choice of companies that you see on the chart. Going forward, our SDV journey will be structured around 4 pillars: technology, competencies, portfolio and business model innovations. On the technology front, while our t.idal architecture has been launched, we are working on further consolidation from 2026 onwards with state-of-the-art cloud offerings that really give us then the opportunity and the ability to connect multiple ecosystem partners, offering a really holistic, seamless customer experience. On the competency domain, Tata Motors is rapidly augmenting capability of personnel, not only in engineering but in all related functions who are exposed to this software-defined revolution. While a multi-geography footprint for software development is helping us to scale and speed, we're also leveraging, as I mentioned, our ecosystem synergies with partnerships in India in the Tata Group as well outside of India. And while SDV enables us to create sustainable differentiation for our products through both digital, personalized and physical features, it also really creates an opportunity to expand our product portfolio with digital service differentiators by using ecosystem synergies both within and outside the Tata Group. At its core from our perspective, the shift to software-defined vehicle is not just a technological upgrade. It is really a strategic pivot that fundamentally redefines how value is created, how value is delivered and sustained in the automotive industry. By investing in SDVs, Tata Motors is building vehicles that evolve over time, that deepen the customer engagement, the user engagement and significantly reduce time to market and cost structures with the potential to unlock recurring revenue streams. This transformation positions us not only to compete but to lead in a future where differentiation comes from intelligence, agility and adaptability. We are not just building cars for today, we are really engineering platforms for tomorrow. So ladies and gentlemen, the road ahead is software-defined, and it's leading us to a smarter and more connected future. Thank you very much.

Good afternoon, everyone, and this brings us to the last section of the EV business before I hand it over for the concluding remarks. I think you're all familiar with a remarkable turnaround this business has made over the last 5 years, and it shows the story in charts, anchored around the reception that we got on our new Forever range and the sharp focus that we had on changing customer preferences, we were able to manage significant growth in our volumes as well as drive profitability. We continue to make strategic investments in expanding our portfolio, especially in EVs. But at the same time, we ensured that we remained financially prudent. We've improved our market share year-on-year for 4 years between FY '20 and FY '24, gained almost 10% from 4% to 14% in that period. FY '25 was a period of consolidation for us. We heard Shailesh say how our SUV portfolio continues to grow ahead of the market. But -- and our CNG portfolio, twin cylinder CNG portfolio continues to see increased traction in the market. To ensure that we offset the softness in our hatch portfolio we saw this year, we continue to revitalize our Tiago and Altroz models to ensure that they have continued appeal and relevance. The volume growth we saw drove a 35% CAGR in our top line. And that was also the -- underpinned the strong financial performance improvement that we saw, a INR 4,500 crore improvement in our consolidated EBITDA, delivering consistent level of profitability over the last few years. Our ICE business has been self-sustaining and it has been funding all its investment through internal accruals, and you will see the positive FCF on the chart. We continue to invest aggressively in our EV aspirations. Over the last 8 quarters, a very healthy trend of improvement in our EV EBITDA margins despite all the aggressive investments that we continued to do in this space. You'll also see the PLI coming in over the last 2 quarters, further strengthening the financial foundation of this business and ensuring that we are well poised to invest in this space and lead India's pivot towards a sustainable mobility future. We saw the significant improvement in profitability over the last 4, 5 years. They were largely on the back of 4 levers. Our pricing actions and the shift towards SUV ensured that we had a 6% improvement in realization of our portfolio year-on-year over the last 4 years. We will be introducing Sierra later towards this year as well as enhanced powertrain options on Harrier and Safari, which will ensure that this trend continues. The second lever was our non-vehicular business. You saw Siddharth talk about this a little while back. Our NVB business has grown threefold over the last 4 years in tandem with our increase in vehicular parc and the service inflows. We will be driving higher service retention in this business through better service quality, increased capacity and deeper customer empathy. This business will help us -- will become -- we will get the aftersales business to be an engine for growth and profitability for the overall PV business. Annual cost reduction, this is something that has worked very well for us. We have been -- all our frameworks have been delivering almost a 2% reduction in our material cost year-on-year. FY '25 has presented us with some challenges. And hence, this has prompted us for a pivotal shift in the structure and the approach that we are adopting, and I'll talk about it a bit later in the presentation. We are -- we have a legacy of financial discipline, and we have an organization culture, which is very conscious of fixed cost increases and relentless productivity improvement. And all of this really helped us as when the volumes kind of kicked in, we were able to get the benefits of improved operating leverage and drove the profitability higher for the business. Yes. FY '25 has been a year of consolidation, as I mentioned, both in terms of volume as well as our profitability. A couple of trends which has played out this year. over the last 4 years between FY '20 and FY '24, we saw a very robust year-on-year demand in the industry. We've now reached about 4.2, 4.3 sitting on a high base. The demand last year was muted, and we see a similar trend coming in, in FY '26. First 9 months in FY '25, the industry was still getting [indiscernible] with the new demand situation. The channel industry levels had gone up significantly, and it meant that we had to give higher dealer incentives and consumer schemes to ensure our dealer stock remained at healthy levels throughout. Second was the salient shift towards SUVs is there for all of us to see. but it has also meant a higher competitive intensity in the compact SUV, mid- and high SUV space. There has been intense actions on pricing as well as a slew of new launches and refreshes that has come through. As with any cyclical industry, we've seen in an auto is an industry typical of that. Last one year, we've seen more value seekers who have driven a shift in demand towards mid-level trims versus the high-level trims that we used to see in a period of very high demand. We've also seen model mid-cycle refreshments coming in with very high feature-rich additions, and it gets good traction but the ability to alter customer pricing points within the segment, there is very little limited headroom now. Later last year -- later part of last year, we've seen inflationary pressures. We have volatilities in FX and commodity prices going up. We'll see the impact of that through this year as the -- our commercial contracts come up through a resettlement. Any increase in pricing will have to be -- an increase in industry pricing have to be carefully calibrated as we see the demand situation evolving. In a nutshell, we have made a very significant -- we have taken significant strides in our profitability improvement journey in the last 4, 5 years. FY '25, there have been certain market realities, which has presented challenges, and we have lost some of the gains that we had made in the past. But we are very clear and focused on the areas that we need to improve, and we remain committed to get back on the trajectory of the margin guidance that we have given. Next slide. We spoke about profitability improvement that we have delivered. Material cost reductions has been the cornerstone of this profitability journey. What we've been able to achieve 4 years when we saw a very robust industry growth, we were able to leverage on our volumes and able to negotiate favorable commercial terms for all -- from all our suppliers. So that worked well. We were also able to accelerate all value engineering cycles with a shorter time to market and tangible gains. These tactical levers helped us get there, but with the current market realities of market -- muted market demand, value-seeking customers, midyear enhancements with feature-rich additions and limited pricing headroom has meant that we have to -- we are making a strategic shift in our approach. And what this would involve, it would involve seeking deeper cost efficiencies by platform architecture optimization, we'll ensure that we will be having -- maximizing our parts carryover across our platforms and our products. We will be standardizing on our test specifications closer to industry standards as well as optimizing integration of new features into our products. We'll also be reinventing our entire supply chain, seek out global supply chains for competitive cost advantage as well as co-partner with a few of our suppliers to create solutions with clear cost targets and we've already been doing that for some of our new models that you've coming, especially on EVs. We also -- as we have the advantage of an expanded portfolio and greater volumes, we'll also be evaluating in-housing of few subassemblies, which we currently outsource and drive cost efficiencies there with smart manufacturing solutions. We have a team of almost 300 people across -- cross-functional team of 300 people across purchase engineering, finance and product line working around the clock on these initiatives, which we call today pace profit and cost excellence. And this aligns with our vision of driving sustained and continuous profit improvement while delivering feature-rich and cost competitive products to our customers. We've had various speakers through the day speaking about our commitment to EVs, this all pulls it all together on a single slide. We remain committed to driving accelerated option of EVs in India. We do that by introducing nameplates at every price point and every driving range. Very recently, we've added Harrier EV, and we will obviously have Sierra later this year. We had Balaji Rajan speak about how we are driving partnerships and collaborations to improve the EV ecosystem in the country, whether it means expansion in charging network across highways or also working on tools for supporting residual value in used vehicles. Profitability improvement, we've -- key highlights for this year was that the business turned EBITDA breakeven this year, 1 year ahead of our earlier guidance. We will continue to drive structural reductions in this space, specifically on EV specific components where we see our headroom as globally the EV penetration kind of increases and we have new technologies coming in. We have Tiago, Tigor and Punch EV PLI certified. We have received INR 102 crores cash from the government last year and we have another INR 250 crores accrued this year. Next in line will be Nexon EV and Harrier EV for PLI certification, which will further strengthen the financial foundations of this business. We will continue to invest heavy on both nameplates as well as we will enhance the value proposition of our existing portfolio. We have launched Harrier EV. We'll have Sierra EV, we'll have Avinya and a few other nameplates that Shailesh spoke about earlier in the day. You had Sven ease out the work that we'll be doing on SUV, which will be a key pillar for driving customization of vehicles and personalization of customer needs. In a nutshell, we will be investing aggressively in this space. But at the same time, we will ensure that the business is profitable, scalable and future ready as we invest ahead of the curve. In terms of outlook, and as I mentioned, FY '25 has been a year of consolidation for us, both in terms of volume growth and in terms of our margin profile, but we remain committed to enhancing our market positioning and strength and our guidance, both in the medium term and in the long term remains unchanged. We will be shooting for a 16% market share by FY '27 and drive our market share to 18% to 20%, while by FY '30, while ensuring market leadership position in EVs. We will be double-digit EBITDA margin in ICE while we take all action to improve the intrinsic profitability of our EV business. We will be making strategic investments of up to INR 35,000 crores to drive the next phase of growth, INR 35,000 crores over FY '26 to FY '30. This will go in majorly in the new nameplates that we are developing plus SDV, plus some of the powertrains that we need to go along with our new nameplates. The ICE business will continue to self-fund itself while delivering a strong cash flow of almost INR 1,000 crores a year. The EV business will have planned cash outflows over the next few years, but we have well funded the business to sustain itself for the next 3 years. So while you'll see big bold investments from our side to achieve -- to realize these aspirations, all the work that we'll be doing on structurally reducing the material cost on the ICE side, the structural cost actions on the EV side, the operating leverage that we will kick in as well as the benefit that we will get on the model mix, with all of that, we will be driving the business to a 10% consolidated EBITDA margin for both the ICE business and the EV business. And it will ensure that we remain financially prudent in this phase of growth, just like we have ensured and delivered that for the last phase. Thank you...

Thank you, Dhiman. So coming into the last phase of this. A quick wrap up of today. Firstly, thanks for being a very, very patient audience and of course, a lot of questions. I'm assuming much more will come in the PV section. But to just wrap up what you heard today. The commercial vehicle business is in a fine fettle, and that's the one as it get demerged and is an important part for the next section I'll talk about in terms of the demerger. It's very, very clear this business is poised to win big. And we'll win big by improving our customer business -- customers' business, where that's an important way of winning in CV through products, through technology as well as service excellence. And you heard the teams talk about that in the morning. The brand is arguably the most ubiquitous presence of Tata in the country in commercial vehicles. And therefore, it's important that we leverage the brand to the hilt and that you will also be seeing that happening. And to ensure that we are generating cash through the cycles, we'll focus on both the vehicular sales as well as the non-vehicular sales of the business. That's an important part to deliver profitable growth. At the same time, we will invest proactively in decarbonization, digital connectivity. And I saw there's a lot of interest coming through on the fleet age side, and we can talk about it more in the coming days as well. At the same time, this business will step up its EBITDA. It will move into the teens category, and the teen is a very large range. It can start at 13%, end at 19%, and let's see where we land. So it's a long, long way there, but it's important that we now start this business touching into the teens. At the same time, it will generate cash flows through the cycle. That's a very important shift in strategy that we are talking about, and I'm sure you have recognized that today that through cyclicality, we actually would want to decyclicalize the cash flows of this business. The intrinsic, the vehicular business can be cyclical. M&HCVs can be cyclical, but it doesn't have -- the entire cash flows need not be cyclical. And if you get that piece right, this industry will rerate. And that's what we are going after, and we will push for that with all our might and the demerger is the most perfect time to actually get that going. With this, this business will be targeting to go after a 40% market share. It will have a teens EBITDA, 7% to 9% free cash flow post tax and sustain its very high ROCE. The kind of ROCE that you see in this business start comparing with FMCG, and if you decyclical as a business, you can start thinking about how this business will rerate. On the passenger vehicle side, we -- again, we had an exciting session in the afternoon. And we are very clear. This is a growth business. For this growth business, we will invest proactively. At the same time, we'll be responsible. So this business will live within its means in terms of generating its free cash flows of INR 1,000 crores every year that Dhiman talked about. But it's going to be an always new expansive portfolio. We are doubling down on this portfolio, and we have all the right to win. So far, we have been famous for design. We have been famous for safety. Now we'll add one more element to it. We'll be famous for service. Watch my words, this business will go famous on service. And we will secure the future -- the future of this business by delivering technologies, capabilities that is absolutely right up there with everybody out there in the world. And we will reimagine this brand for the new exciting future that's coming at us. And of course, all this will be done by delivering a double-digit EBITDA, which is the guardrails on which this business will run. On the EV side, you heard extensively about how we want to be the leader and the pioneer in mainstreaming EVs. We have done a lot of hard work. It is not just a flashy new car launched. That is just the start of the journey story. There's much more that needs to be done. And we haven't even talked about batteries today. That's another angle to the whole lot. So therefore, driving penetration and mainstreaming EVs is absolutely mission-critical for us. And Balaji put it eloquently to say there is the purpose of creating this company, and therefore, that's what we want to live up to. And we will be aggressive in our product launches. You saw the Harrier launch, what we can do, but we'll do it in our own Tata style. We don't intend to be glitzy about it, but we'll definitely be impressive. And we will remove barriers to adoption wherever they may be, however tough they have to be brought down. And of course, the cost structures of ICE and EVs will start coming together, which fits in well with Dhiman's plan of getting to a double-digit EBITDA. That is going to be the tougher part of it, but everything else is absolutely par for the course. So going -- this is about the business. So quickly let into the demerger. I don't want to belabor this point. We've talked extensively about it. The rationale for the demerger has never been more clear and present. We are unlocking shareholder value. We have sharpened the strategic focus and agility of these businesses. And just this morning section to the afternoon section, you realize the difference in the businesses and the focus that they are on to. We definitely want it for efficient management and capital allocation. And of course, the investor community that wants to invest in the CV side and the PV side, it gives them a choice. Who are we to put them together and say invest together. And of course, there's going to be a simplified group structure as far as continuity is concerned. Where are we on the demerger time line? Thanks to you, and thanks to all the shareholders who are out there. This approval was absolutely insane. There are 17,000 of them, and I know the name of the person also who did not want it. Barring that, everybody else across the board of 363 crore shareholders that we have voted vociferously for the demerger. So thank you all for that. July 1 will be the appointed date. That is in the accounting of this business, and I want to talk to you in a slide and you're going to hate me for that, but I'll still go through with that. The accounting demerger happens from July 1. Once that is done -- sorry, before that, the NCLT, we are filing the papers in terms of the shareholder approval having been received. The next only thing left is the ROC has to come and say yes to it as well. Thereafter, the NCLT approves it. I'm expecting somewhere between July, August, September. August, September will be the right time frame in which NCLT will give its approval is what we expect. Let's hope so. And once that is there, October 1 is going to be the effective date of demerger of this business. And when we're doing that, the accounting of this year from July onwards will be split as these 2 companies. And of course, you know the details of the schemes, so I'm not going to spend time on that. These -- the demerged companies, it should be absolutely clear how they stack up. First of all, these have very, very strong underpinnings, starting with the benefit of being in the Tata Group. The access to the Tata brand continues unfettered. And the automotive vertical is a very, very strategic vertical for the Tata Group, and therefore, this demerger is not going to take that away at all. So it's going to be actually reinforcing it. And we are continuing to be uniquely placed to leverage the synergies across the entire group. So none of the stuff that is already there is being compromised. And as far as the Board and the leadership is concerned, the Board will get expanded. We are methodically expanding it. And therefore, this is a pretty illustrious Board with a very diverse experience that we are putting together. And of course, governance goes without saying it's a Tata company, it will be exemplary. And the management team, you have seen them in action, and we'll continue to keep strengthening this management team. One thing we didn't get to talk about today simply because we didn't have time was that we are getting AI ready as a company. And therefore, the fact that we have taken out the IT analytics and the AI teams into a separate group company called Digital.ai, Rajesh is here. That digital.ai labs is going to serve both the companies, and that's an important part of consolidating where we need to consolidate. This company is going to be held 50-50 by the CV company and PV company, and that will also ensure there's a perfect alignment in terms of what needs to be done. The other one is the entire shared services because -- while AI digital.ai piece is more the sexy stuff of life, the boiler room stuff, the plumbing, wiring has to be absolutely seamless. And without that, you can't dream of an AI company. And that's the shared services team is also going to be shared. That's again 50-50 held by CV and PV. And these, I call them the accelerators. We will talk about them more next year, but this is going to give us unprecedented speed in versus how will we execute some of the plans that are out there. And of course, talent will be fungible across the 2 businesses because people want to grow. You may have a specialist, the role may be a specialized role, but people may want to be generalists. So they may want to go between roles. And therefore, we would want to give them the option as well. And there will be -- there's opportunities to work across whatever people may choose to work in, and we would want to ensure unfitted access on that. At the same time, the culture is going to be collaborative. I think Sita put it most eloquently when he said, this is like you have 2 boys in the house, both grow up and thereafter, they are getting married. So we're now having to have them 2 houses that are there, but they're still relationships. So they're going to actually be sitting together and whenever there's a problem, they will step in for each other. And therefore, these 2 -- they're still part of the same family. They'll be -- they have the same ethos, the Tata ethos is very much on, and they cut off the same cultural fabric, which we talked about earlier. So this is the underpinnings of which we are getting into the demerger in a very, very strong way. Now it comes to the part you're going to hate, that's the accounting part of it. So I can do it in 2 ways. One, I say just trust us, it will be fine. The other one is to say, let me explain to you what the problem is. Maybe after I explain, you'll say trust us, it will be fine will be a better way of handling it. The left-hand side that you see is Q1 '23. This the current quarter that we are on to, nothing changes. It drops as it is that you are always used to. There are 3 financials that you will look at. What is the Tata Motors consolidated? What is the Tata Passenger vehicles segment? And what is the commercial vehicle segment? Come so PV segment, CV segment, no difference to what you are seeing today. But this changes quite materially when we demerge. Let's talk about the passenger vehicle segment. The existing PV segment comes on because what is happening in the demerger. We are pulling out the CV company. The CV stand-alone business is getting pulled out, and we are merging the passenger vehicle business, which is a subsidiary into the topco. This company is getting renamed as Tata Passenger Vehicles, thus erstwhile Tata Motors and commercial vehicle business which got pulled out is getting renamed as the erstwhile Tata Motors. So multiple steps are happening here. Leave the names aside for the time being, we can worry about them later. Take the Tata Passenger vehicle. Going forward, the Tata Passenger vehicles consolidated. First for the current quarter that will come up once the demerger is being -- the accounting splits on July 1, you will be restated. There will be a recast of the Q1 financials. You'll have the PV segment, you'll have JLR and the others is basically fundamentally TTL that will be remaining. The CV segment will get reported as a discontinued operation in the PV company. So the financials of the CV company when it recast is going to show the CV segment as discontinued operations. Coming to the commercial vehicles, yes, it got pulled out. The CV segment comes out, along with it will also come out the Tata Motors Finance Holdings, but that is what the stake is going to be held. There's an intrinsic nuance that's happening here. Today, in the consolidated business, intercompany revenues are getting canceled. Intercompany profits are getting canceled. Once you demerge the company, you can't cancel it. You're going to gross it up. About INR 2,000 crores of revenue will get additionally recognized, which was getting canceled off between the CV company, that in the financials, you need to keep that in mind. Going forward, Q2 to Q4, life gets simpler. At least the CV segment will not be reported as a discontinued operations because that is gone, and it's going to be a very simple PV segment. This noise, when you compare that to the past year, you're going to have significant confusion in the financial growth rate numbers. So our humble request is, use the management financials that we'll give where we'll give like-for-like comparison to ensure that you leverage it. Of course, reconciliations and everything is there for the -- for your own team that you will want to just ensure things are tied up. There is a bit of unallocable that's also moving up and down, immaterial for the -- in the grand scheme of things, but that's more for reconciliation somebody will be interested in. So this is going to be the accounting nuance that plays out and trust us with the management accounts in terms of clarity that we'll provide. And of course, the Investor Relations team will be all over you to explain the numbers. We will put it on to our website soon after the demerger is announced so that you can also understand how the numbers are playing out. When the financials are -- when you look at the actual numbers, you will find we have tried to ruthlessly simplify this. There are nuances that still need to be explained further, but the Investor Relations team will be more than happy to do so. So in summary, I wrap up my section. Each business will continue to execute its differentiated strategy flawlessly and realize its full potential. That's the whole purpose of the demerger. We are staying firm on that. They'll continue the product and tech intensity and lead the next phase of innovation, very important. And they'll fully transform into high-performance customer-centric organizations. And the rigor on free cash flows continues, profitability continues, ROCE continues, no shift on as far as that is concerned. And these companies will continue to carry the legacy of Tata Motors Group. They'll be empowered by purpose, they'll be shaped by culture, they'll be sharpened by strategy, and they'll distinguish themselves by their executional excellence. So that's what we have to say. Let's take Q&A. I invite the PV team on the stage, please. [Presentation]

That's an impressive car and an impressive video as well. Just a quick show of hand, how many of you are seeing this for the first time? Okay, quite a few. All right. So I think we'll move on to the Q&A.

So I just wanted to introduce some of the new faces that you're seeing here, so that you have met. So Anand, he is the Chief Product Officer and also looks after HP engineering. Then you have Mohan Savarkar. He is the Chief Product Officer of PV business. Then we have Pramod Chaudhary. He is the Head of our Operations. And we have Hemant Barge. He is the Chief Purchasing Officer for PV business and rest of them you have already heard. So we can start with the questions.

I think we can begin with Kapil again.

This is Kapil from Nomura. First question is on the model portfolio that we are thinking about. Almost 15 models, that's as big as the market leader today. So in terms of the dealership network, how are you thinking about placing this in the market. Will it be a separate premium channel or it will be EV and ICE channel separately?

So I think that's a very logical question is what I can say, but I can't give a confirmatory answer to this, but it's a very logical step to consider not only separation of distribution, maybe brand also. At this stage, I can only reveal that it is under active consideration. Also the question on Tata.ev and something which we are mulling about how to really see if there is a possibility of separation, whether there's a need and in which cities it would be needed. But at this stage, I'm not able to give you any confirmatory answer to that.

Sure. And sir, can I check on the volume growth for Tata Motors. We've seen it, despite the actions, it's been a little below industry growth. So if you could share your perspective, like what's happening there? And when do we expect Tata Motors to start growing ahead of the industry as you are guiding?

So I -- in my presentation, I had kind of touched upon the issue. So last year, the industry grew by 2%, whereas we declined by 3%. And as I said that it was tale of 2 cities where CVs were growing in the industry, we had an industry-beating growth in the SUV segment. And in the hatches, we degrew more than the industry because of the aging portfolio in hatches, which was Tiago and Altroz. So SUVs, we were already doing well with products like Punch, Nexon and also the Curvv that got launched. It has full year now. Curvv will have its full year. You'll have the full year benefit of Nexon CNG also. We are going to have multi powertrain options in Harrier, Safari both. And therefore, it's a very good year for SUVs, which is going to grow again. As far as hatches are concerned, which was the key reason for us why we degrew more than the industry, this will be the reason I would say, for us to grow better than the industry because it's a low base. We are already seeing growth in Tiago, which has already got tested in the last 3, 4 months with the model year intervention that we had brought. We already saw 20% growth in a declining industry in Tiago. Altroz, the deliveries are going to start this month. We are already seeing 3-digit percentage growth versus the last few months in Altroz bookings, which also augurs well. So Hatches will be super strong for us with the low base effect also and with the refresh portfolio there and SUV should also do better than the industry is what we expect with a new nameplate also coming in. So therefore, possibly this would be the year where we would be seeing growth stronger than the industry.

Thank you. This is Rishabh from Goldman Sachs. So I just had 2 parts to the question. First is the target for FY '27 of about 16% market share. So if we take even a conservative 7% market growth, that translates to about 800,000 units for Tata Motors. From now 550,000, that's about a high teens growth. So what key milestones do you think that you would have to achieve to get there? And the second part is on the replacement cycle. So you mentioned a figure of 4 years on the replacement cycles, which might be a bit ahead of the industry -- of the overall broader industry. So if you can share with us the split between ICE and EV replacement cycles as well as urban versus rural?

So let me first answer the second part of the question that you asked, which is the replacement cycle. What I mentioned was for the ICE vehicles because we don't have actually the reference of EVs at all because the personal segment market got created in 2020. So we still don't know the replacement cycle. We are just seeing some of the initial customers going for replacement of their electric cars. So still, I think that would possibly, I believe that the cycle might be slightly longer for EV for a certain segment of customers who have completely taken it for TCO reasons, but there are another segment of customers who want to experiment with technology, these are people coming from technology background, always would like to have the latest tech with them. So here, the replacement cycles would be faster. So I would say that it would slightly differ from the kind of customer that is buying the EVs. On ICE I have already said this is where we are seeing the replacement cycles coming to 4 years. I really forgot the first question. What was that?

Volume growth.

Yes. So it was the question on FY '27, right? Market share of 16%. So see, you said that what are going with the key milestones, right? I think one, already we are at about 553,000, and this is a decline. I would say that we lost about 60,000 numbers in hatches itself as compared to what we had done in FY '24. And I see complete recovery of that happening. So hatches coming back to the numbers where we were is going to be an important milestone. The full year benefit of some of the launches that we did last year, which is Curvv, Nexon CNG, all these interventions should help us, therefore, get the full year benefit and also in the subsequent years, that should help us. Third, Sierra launch is going to be very important for us. And therefore, ensuring the success of Sierra with the multi powertrain options that we are going to give, whether it is petrol, 2 powertrains in petrol, one diesel and then electric also getting launched, I think that would be one of the key drivers of this kind of a growth. I think these are some of the key milestones and what will make the number that you spoke about. I'm not talking about the numbers, 16%, let's see where the industry will be. But yes, these will be the levers for us.

This is Kumar Rakesh from BNP. My first question was on the models that you have currently. Nexon and Punch established you under 4-meter segment pretty solidly. But in the segment above 4 meter, we have launched multiple products. I think you would agree that they wouldn't have performed the way you would have expected them to perform. So what is it that has been missing in terms of the products which we have launched, be it Harrier, Safari or Curvv that we haven't been able to establish a similar leadership in this? I'm preempting, you will answer Sierra should solve that, but if you can give some details around that, how do you expect that to start changing going forward? An extension of that question is you spoke about 7 new nameplates, which will be added. What would be the platform strategy behind that? Understand Avinya would be based on EMA, and I'm guessing that the bespoke EV would be based on your Acti.ev platform. The ICE models, on which platform would be based because your ALFA platform is now almost 5 years old. So are you looking at doing some investments around the platform strategy as well?

Yes. So on the platform, I would also ask Mohan to add to -- but let me first tackle the 4.3-meter segment that you talked about. Let me first acknowledge that Curvv definitely, we had expected to do more, but I'm still very confident about the future of Curvv because it's a new body style that we have launched. All the customers that we have surveyed who bought Curvv have just loved the styling and because of that reason, they have bought the Curvv. We have also noted some of the observations, which have come from the customer of what can be improved in the car that also we are going to do and I think that should -- and also the repositioning that we have done already, we are seeing good response to that. So with some of the product interventions that we would do to further improve the value proposition of the car, the repositioning that we have done and slowly, this kind of a body style picking up over a period of time, all 3 should help us do well. So I'm sure that jury is out on whether Curvv has been a success or not, but I'm very confident that it should do well. As far as Harrier and Safari is concerned, I think this is we were very close to 30%, 33% market share just with diesel, right, whereas competition has petrol options and all, and therefore, we are losing some of the big markets like Delhi and all, right? Where people are only going for petrol. This is the missing piece in our portfolio. And therefore, this is going to come in this financial year. And then -- you will see some more smart interventions that we are going to bring in the coming months. I think Harrier, Safari has the potential of becoming the market leader. So my answer would not have been Sierra. We have to do good in Harrier, Safari and Curvv itself. But every segment where we enter, we have to ensure that it is among the top 2 cars, which are being sold in that segment. And I think I'm very confident that each of these products should do well. So this was on the 4-meter and plus SUVs. As far as platform is concerned, we have right now multiple platforms, which have to transition now and converge to 1 platform for a certain set of products in the coming years. In this next 5 years, you will see some of that convergence starting to happen as the product life cycle goes for the next intervention for individual product. So Alpha, which is just, as you said, 5 years old; platform lives are 10 years, right? So we always see platform to survive for 10 years. That's the latest platform that we have. It's a very capable platform. There are certain investments that we are doing in on Alpha as far as light weighting is concerned and all further strengthening the body structure. So that work will go, but this is where a lot of convergence of some of our products will happen from the older platforms. We already have Omega also, which is doing the Harrier, Safari. There might be a third platform also, which might come, but I'm not going to talk about it today, but you will see consolidation of platform and very modern platform on which we'll be investing as far as light weighting is concerned. Mohan, you would like to add something?

Just to add a few things. So like Shailesh said, a platform has a good life normally about 10 years plus. But then platforms also don't stay stationary. They will also keep evolving according to how the market is moving. For example, let's say the load parts will keep on getting more and more refine. You need to make sure that the structure itself becomes more and more rigid so that all the road load cases are taken care of. I mean -- and when we say platform, it will have to mean that it can take up more than 1 body style, more than 1 body length. So all these things will keep on evolving. Now you would have noticed that Nexon also has been moving -- and along with that, the platform is moving. The Curvv has been brought on the ATLAS, which is another, let's say, improvement on what we had earlier. So these things are a part of our business, and we would want to make sure that we are always keeping ourselves abreast of what products require the platform to give it.

Thank you. I'll hand it over to [ Vinay ].

I just wanted to sort of ask you on EV EBITDA margin ex PLI. How to think about the milestones to track for that into the coming years? I think when you talk about 10% consolidated margin that EV also ex PLI was there, given there's a large amount of outsourcing in that segment. So what is the ...

No. So the PLI benefit is only until FY '28. FY '30 margin guidance of 10% would be without PLI. The way we are looking at 10% is ICE business should be outperforming beyond 10%, right? And EV probably will be somewhere around 7% to 8%. And given the 70-30 portfolio mix on a consol basis, it will be 30 -- it will be about 10%. If you look at our margin structure today, obviously, EV business, the scalability is still not there, so the margins can be a little volatile depending on the seasonality in terms of fixed cost spends and the marketing spends. But even without PLI, we've been touching close to EBITDA breakeven this year. PLI came in only in the last couple of quarters. So even without that, we are close to 0 EBITDA procurement and that would be our target for FY '26. And over the next couple of years, we will see structural cost reductions kind of come in. Anand and Sudhir are working. There is -- we've only seen the largely the cell prices which have reduced, right, and they've come down by almost 50% over the last 18 months. Almost the entire benefit has been passed on to the customers so that we get more consumers to come into the pool. And -- but there are savings which are there to be had in terms of the non-cell components, the battery pack. There are savings to be had on compressors, on motors and various other components. Today, the overall volumes remain low. But as the penetration level increases, as the volumes keep increases, we'll go through the same journey that we had on the ICE side, right? You saw the 2% year-on-year DMC reductions that we were able to get on the back of increasing volumes, and we will be able to drive that kind of optimization in EV also. So a 6% to 7% EBITDA margin without PLI in FY '30 wouldn't be out of reach. But maybe, Sudhir...

I don't know whether you touched upon the model mix?

Yes. So we will also -- today, you have mostly -- it's only the compact and the compacted that you see the richer portfolio mix in terms of Harrier EV, we'll have Sierra after this, and we will be coming with Avinya. So in terms of model mix, will also be added levers that you'll see. So cost reduction, model mix, higher leverage in the business should all be able to drive to that number we had in mind. Anand, you would like to cover on the cost side?

So one of the things that I could share with you today is -- there is a very high degree of technical evolution that is happening in the cars today. And one of the things that is of significant interest to us is the combination of electronics and combination of parts that's happening, bringing everything together, which not only makes it possible for geometric integration within the car, but that also drives down costs significantly lower. When we started our journey about 6 or 6.5 years back, the cell versus non-cell costs were at a particular level, and there's been immense amount of work that has been put in to drive down the non-cell costs. Of course, cell costs have dropped down on account of various factors, but the non-cell costs have gone down. We have leveraged the 8 billion kilometers of data to be able to tune parameters to optimize cooling parameters, et cetera. Also, as we've gone on, there's a significant amount of technical upgradation in terms of materials, in terms of the total number of parts that go in even mechanically. So all of that is driving down costs to a significant level and some of the price parities that we have been able to achieve is an outcome of that. So I think to add to what Dhiman has said, this will significantly aid us.

Also on the PLI, both CV and PV will qualify as 1 company, right, with the government restriction of up to 25% or so that every one group can comply, right? So any rough estimates about how much PLI can you claim because that's going to be one big cash flow supporter for the PV/EV business.

Yes. So the total group limit is about INR 6,500 crores, both PV and CV put together. We are right now between 3 products at a run rate of about INR 40 crores. So I'm just answering from the PV side. Right now, we are at about INR 40 crores per month basis, the 3 products. Obviously, you'll see the PLI accruals a little volatile because of the timing of the DCA AAT certificate and there are other one offs, but we are at a run rate of about INR 40 crores a month on 3 existing products and with Nexon and Harrier also coming in, we will be able to take this number to almost INR 700 crores this year. And then with the full year benefits, we should be touching close to INR 1,000 crores plus in subsequent years. So INR 3,000 crores, INR 4,000 crores is something that we should be able to maximize over the next couple of years. Balaji?

So just to add to it perfectly right. INR 450 crores is the total number, we will get the full number and INR 4,000 crores here and the rest in CV. But from a cash flow perspective and investment perspective, don't forget that the JLR dividends get upstreamed into PV. And therefore, that is another avenue for investments going forward without creating debt. And JLR when it talks about being net cash, it is after paying out the dividend. And overall, as far as on the medium, long term, this business overall will be cash positive, JLR plus PV, EV all put together. So investments, what you called out in terms of INR 33,000 crores to INR 38,000 crores, the PV side of it will generate free cash flows positive every year. The EV side of it is where the investment is. We called out about INR 16,000 crores, and that is something which will be funded as a combination of PLI, own cash flows, EBITDA that it will generate as well as any surplus delta needed, we can always be upstream by the dividend. Where at a point in time, the EV company, we will merge it back into the PV company. Therefore, EV will be part of that, and that also takes care of all future changes that we need to put full flexibility there. Go back to Kapil's question in terms of how do we manage network, all that becomes bigger issues to deal with. And therefore, it served -- at a point in time, it had a purpose. Going forward, at an appropriate time, we'll merge it up. So that will also ensure that the investments are not getting frittered away. We don't waste money.

I am [indiscernible] from HSBC. So you are taking after sales -- aftermarket sales is a big opportunity at this point in time. So what is the kind of sort of feedback loop we have created between the customer and company. That's first. Second is like what sort of delta in margins are you expecting from this business, where you're taking -- talking about double-digit EBITDA margin over the next 3 to 4 years?

I didn't hear your question. Could you just mind repeating it?

Sure. So first is like what sort of feedback loop you have created between the customer and the company. Like when you talk about you will create it as a brand like servicing will be a big pillar of your growth going forward. That's first. Second is on the margin side. Like when you're talking about double-digit margins in passenger vehicle segment, what is the delta coming from after sales and servicing in that estimate?

So let me answer the second question first. So let me not get into the specific numbers. But our NVV business is about 6% to 8% of our overall revenues and can give a kicker of almost 1% to our EBITDA margin. right? And typically, in the industry, also, obviously, our [ puck ] is still growing. A lot of our volume growth has come over the last 3, 4 years. The industry, which has a longer history will probably have 8% to 10% of its NVV business of its revenues coming from the NVV business for us, it's slightly lower. But given the huge [ puck ] and the service inflows that we are seeing, we should be able to catch up with that in a couple of years.

So we have also strengthened our -- the feedback mechanism of the customers. Now what we are doing here is we're also monitoring the customer positive feedback what they are talking about us and as I said earlier, the positive mentions about Tata Motors customer care has gone up by 20x over the last year. Then the second thing is, as I said, in customer service, speed is the key. We are also focusing on the same-day deliveries, which has also gone up by 21% over the last year. That's how we are seeing this.

Thank you, sir, for the opportunity again. On Sierra, thanks for showcasing the product. Product is amazing. If you can talk about how the positioning of Sierra will be because like Gen X customers will remember the product as a product, which was the first off-roader in India, a 4-wheel drive product. And in the above 4-meter segment you'll have Harrier at the most premium followed by Sierra followed by Curvv and you're looking at Sierra as a product, which can be a good volume generator ICE plus EV combined. So if you can give some thoughts how, what kind of customer segmentation you will target? How do you see this product doing?

I'll start and then you can -- so see, it's a very interesting combination of 2 strengths, one that the brand is iconic. It has nostalgia and there is certain kind of customers that it is going to attract for that reason. The second, while this has the same design language, that emotional connect with the strong brand name of Sierra, which was if you remember Sierra and try to associate what were the association with Sierra, it was ahead of its time. It was futuristic, right? And it appealed to customers who are discerning and sophisticated and young. This is what it was Sierra at that point in time. So some of even people like us who are connecting with Sierra, you will have this kind of an age profile also, but bigger part of the profile is going to be the Gen Ys and also to some extent Gen Zs because we are clearly seeing that this segment of product, there are a lot of first-time customers now. And all these young successful professionals as well as entrepreneurs will be the key focus for us because they are looking for immersive tech experience. They're also looking for a very capable car and it's a very practical design that we have come with, with its iconic brand name. So it is, therefore, positioned as a product. Of course, there will be a price point. I don't want to talk about whether it will be above Harrier or below Harrier, let us decide at the time of the launch, but I'm specifically, therefore, talking about the customer segment. A lot will be also the first time buyers, but there will be clear upgraders also who are going to go for this. So this would be about Sierra. Anything you would like to add from a positioning perspective.

Yes. So in addition to what Shailesh mentioned, you'll notice that in every product that we are bringing in now, we are ensuring that we have a big lineup of powertrains that will help people to choose what they would like to go for. So the product itself is extremely aspirational, but it also has several powertrains, some of which we have already shared with you earlier. And for example, it will be debuting our 1.5-liter gasoline family, which includes the GDI engine as well as the naturally aspirated engine in addition to diesel, in addition to EV and so many other things that's going on. So please hang on a little bit till we come up with proper announcements.

Yes. I was just going to add, in the development of the Sierra, like Shailesh mentioned, people remember the original car, but that's the beauty of nostalgia that they edit all of the negative aspects and only remember the good times. But it was never intended to be a retro design. Like the original one was always a forward, progressive, tech-driven aspirational product. So regardless if you have any relationship with the original car, the new car has to stand on its own feet. And at the same time, from a design point of view, be clearly identifiable as a Sierra for those who want to see that, without having to read the word mark on the vehicle. So it actually has to communicate that with essentially 3 lines on the exterior. But fundamentally, it has to be a tech-forward, modern, timeless design. And the interior experience as far as the space and the technology that we're going to offer, it has to be forward-looking and class leading. So that's the DNA of the product.

I had a second question. You have a strong portfolio, you'll be extending it to 15 plates. Both on EV side, ICE side, you have a lot of options. So how do you see the medium-term opportunity on the export side? Some of your peers are doing really well in that category. How do you want to scale up there?

So I wish I should have comprehensively answered this. And if I had to, I would have included in the presentation. But so far, after -- in the early 2000, where we had gone slightly aggressive on international business, we had to retract ourselves back because our products were not ready at that point in time. In the recent times, the focus of exports has been very opportunistic, more around the subcontinent, markets like Nepal and so on. And this year, actually, we expanded to a few more countries like Bhutan, Mauritius and these kind of countries. But very soon in this financial year, you will hear the announcement of first, I want to say, meaningful market with reasonable volume that we are going to enter. So I think you should just wait for that announcement. But progressively, every year, we have identified focused market with meaningful volumes where we will have the relevant portfolio and the strength in our brand to really contribute to that market in a meaningful way. We have identified some of them. Some of them will be completely EV play, but some of them might be a mix of both. So clearly, in the next few years, you will start seeing reopening some of the focused market, but we'll talk about it in greater detail when we have a more comprehensive strategy on [ IV ] which is approved by the Board. But you are going to hear one big one very soon.

Thank you, sir. In the interest of time, we can just have 1 last question.

Thanks Manish. My follow-up again, if I can double-click on the model discussion you were having earlier, specifically the C1 category, which is where the bulk of the volume above 4 meter lies. We currently have Curvv. I think we have Sierra coming in. Do you think this covers enough in that segment for you to have a reasonable volume or the incremental models which you're planning to launch would be in the C1 category? And where do we stand on Avinya? It seems to be delayed.

So it's a very intelligent question. I think you have been reading the trends on how the volume growth and price points, which are going to grow in the future? I think it's a question which is spot on, and this has been thinking behind the selection of some of the new models. But I think if you really see the C1 segment, which I would say greater than 4 meters less than 4.5 meter SUV segment, I think these 2 products are sufficient and they should take care of we having reasonable market share in this segment with these 2 products. Thinking around some of the other new nameplates is completely modeled around where we are seeing the next spirt of growth coming, right? One, because of the upgrades of some of the customers who will be upgrading from the lower segment cars, which they had owned earlier to higher segment car, and therefore, there will be a significant boost in the volume for that price point and whichever car is more compelling in value proposition will win that game. So that has been taken into consideration. And there are certain new body styles also, which are becoming popular, which have been gaining as far as share is concerned, over a period of time, that will also be under consideration. So it's completely modeled around the growth in size that we are expecting in the future.

Avinya, if you can just?

Sorry. For Avinya, we had communicated 2026. By 2026 end, we should be coming with the first model of Avinya.

Thank you, sir. Thank you, everyone. That was last question for the day. I would like to thank all the speakers and audience for a good session. Yes. So that we can conclude now. Thanks a lot. Balaji, sir, over to you. Yes. Thank you.

Thanks, guys.

Okay. So I got a pleasurable job of thanking all of you for coming down. So firstly, I really appreciate all of you for spending this time with us and of course, thanks to all the [ ExCo ] Members and of course, the various business teams that have been spending time putting this deck together. And of course, the Investor Relations team, corporate communications team, marketing team, design teams, P&SQ teams, you can very imagine the number of people who have been involved in this to put this together. And of course, Taj Trees for all the arrangements that is there and of course, our agency partner. A huge round of applause for all of you. Thank you, and see you next week at the JLR press conference. Thank you.