What Are The Key Sources Of Revenue For Tata Motors And What Is The Outlook For These Revenue Streams?

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Tata Motors (NYSE: TTM) reported $44.2 billion in total revenues for 2018. There were 2 key components of this revenue figure:

  1. Jaguar Land Rover (JLR) segment (almost 77% of total revenues)
  2. Tata Motors and other brands segment (23% of total revenues)

As we detail below, we expect total revenues for Tata Motors to grow 2.5% to reach $45.3 billion in 2019. We have created an interactive dashboard, What is Tata Motors’ Revenue Breakdown and Future Outlook? In addition, here is more Consumer Discretionary data.

Total Revenue:

  • Tata Motors had a Total revenue increase of $3 billion from 2016 to 2018 while recording $44.23 billion of revenue in FY 2018. The increase was driven by Tata and other brand segments contributing more than 80% to the increase.
  • Trefis estimates the JLR to remain flat for 2019 while Tata and other brand segment to continue pushing the growth and record overall revenue of $45.35 billion

 

Jaguar Land Rover:

  • Jaguar Land Rover consistently contributes a bulk of the company’s revenues, with an average revenue share of 78.9% in the last 3 years.
  • The growth has remained flat in the past years with an absolute increase of just $0.5 billion from 2016 to 2018. In 2019 Trefis estimates the growth to continue to remain flat as the segment will contribute about $34 billion to revenue, as a no deal Brexit looms for the United Kingdom.
  • The segment’s percentage contribution to Total revenue is decreasing due to the growth picked up by Tata’s domestic brand.

Tata and Other Brands:

  • This segment has grown steadily over recent years, and witnessed a jump of 23.4% in revenues for FY 2018. The growth has been pushed by the fast growth in units sold and a moderate growth in revenue per vehicle.
  • We expect the segment to continue its growth trajectory and record $11.4 billion in revenues in FY 2019 with units sold to be around 713K and average revenue at around Rs. 976K.
  • Export revenues have been steady at averaging around $1.4 billion through 2016 to 2018 and is expected to remain similar in FY 2019.
  • The segment is also steadily increasing its contribution in the overall revenue of the company (19.2% of Total revenue in 2016, to 25% of expected Total revenue in 2019).

 

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