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

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Mint
an hour ago
- Mint
Zolostays' first investor Nexus Venture to check out after a decade
MUMBAI : Ten years after placing its early bet on Zolostays, Nexus Venture Partners is preparing to exit the co-living firm, according to three people in the know. The startup, now valued at about ₹1,500–1,600 crore, has trimmed its non-core operations and is courting new investors, as it looks to scale in the competitive premium co-living space. 'Nexus has initiated talks with several VC (venture capital) funds and some strategics. It is looking to sell its entire 27% stake," one of the persons cited above said. The Bengaluru-based startup, which has raised about $113 million so far from a clutch of investors through debt and equity, has been struggling to grow beyond its core markets. The company had recently sold its student housing business that manages accommodation for colleges and universities to Good Host Spaces for $12.5 million. Zolostays said this sale was a part of the strategy to focus on its core business of managing co-living spaces. At that time, the company had said that the proceeds from the sale will allow it to concentrate on its main business activities, improve cash flow, strengthen overall financial health, and bring higher operational efficiencies. As per data available with Tracxn, Zolostays' fundraising includes a $56 million Series C round led by Investcorp and Mirae Asset. The company had also raised about $30 million in 2019 from investors led by IDFC Alternatives, Mirae Asset and Nexus Venture. Nexus VP has been one of Zolostays' biggest backers, having invested in the company since 2015. 'Nexus has stayed its course in the company and is now looking to sell," said the second person familiar with the development. When contacted, a Zolostays spokesperson denied there was any deal imminent. A Nexus Venture spokesperson did not respond to emailed queries. Founded in 2015 by Nikhil Sikri, Akhil Sikri and Sneha Choudhry, Zolostays had started out with a $1 million funding from Nexus Venture. Akhil Sikri left the company in 2023, and is now the chief technology officer at Apsona, a SaaS firm. A third person in the know pegged the company's valuation at ₹1,500-1,600 crore. Zolostays provides premium co-living spaces to students, professionals and organizations, and it operates in more than 10 cities. As per Entrackr, Zolostays recorded an 11.4% year-on-year (y-o-y) growth in revenue to ₹204.4 crore during FY24, while its losses narrowed by 17.4% to ₹57 crore. The company is yet to detail its financials for the last fiscal. According to a Nasscom blog published in May, the demand for co-living spaces and stock for 2025 are estimated at 6.6 million and 0.3 million beds, respectively. Penetration for the sector is likely to improve from 5% in 2025 to over 10% by 2030, it said. 'India's co-living market is on an upward growth trajectory, with demand rebounding strongly in recent years and operators gearing up for expansion across Tier-I cities and select Tier-II cities," the blog said. "The resurgence of the sector is being fueled by rapid urbanization and migration to cities, especially amongst students and young professionals who continue to seek flexible, relatively affordable, community-driven, and hassle-free housing options," it said.


Time of India
an hour ago
- Time of India
TCS CEO K. Krithivasan's net worth: Amid 12,000 job cuts, top IT executive earns Rs 265200000 remuneration annually
In another major move within the IT sector, India's largest services provider company, Tata Consultancy Services (TCS), is aiming to reduce its workforce by 2 per cent or approximately 12,000 employees, in its 2026 financial year, as per reports that came in on Sunday, July 27, 2025. Amid the TCS layoffs, let's explore the net worth of CEO K. Krithivasan and understand his financial standing. According to Mint, the company is retraining and redeploying staff in a bid to become more agile and more firm to be ready for the future amid the fears of disruptions in technology, especially due to the emergence of Artificial Intelligence (AI). Moreover, the company's target is primarily focused on the middle and senior management, as per Reuters. However, this decision will also impact the employees from across the world and the domains where TCS operates. TCS to lay off 12,000 employees.— Tata Consultancy Services will lay off 2% of its workforce over the next year, Moneycontrol reported.— The move will impact around 12,000 of the company's employees, primarily at middle and senior levels, TCS CEO K Krithivasan told… Who is K. Krithivasan? K. Krithivasan was appointed as the CEO of Tata Consultancy Services (TCS) after MD and CEO Rajesh Gopinathan stepped down from his role in 2023. Krithivasan is currently the president and global head of the banking, financial services, and insurance business unit at TCS. According to an excerpt shared on the company's website, "He is responsible for planning and executing growth strategies, improving financial performance, and enhancing customer mindshare and market positioning. He has helped key clients with digital transformation, change management cycle acceleration, achieving value beyond cost optimisation, and establishing IT program governance." K. Krithivasan's net worth and more The recently revealed annual report of IT services TCS provided a valuable insight into the C-suite executive salaries in India. According to The Week, the annual report revealed that K. Krithivasan takes home a staggering Rs 26.52 crore in FY2025, which is ₹2.21 crore a month! The report further mentioned, in the fiscal year 2025, the CEO's salary increased by 4.6 per cent, and this stands in stark contrast to the median salary at TCS, as Krithivasan earned nearly 330 times more than others, which highlighted the significant salary gap within the IT services industry. His total compensation of Rs 26.52 crore consisted of a Rs 1.39 crore salary, Rs 2.13 crore in benefits (including perks and allowances), and a commission of Rs 23 crore, as detailed in the annual report. FAQs Q. Why is TCS cutting 2% of its employees in the fiscal year 2026? Given the possible disruptions from cutting-edge technologies like artificial intelligence, TCS wants to become more adaptable and ready for any obstacles that may arise in the future. Q. How much does K. Krithivasan get paid in comparison to other CEOs in the IT industry in India? According to Financial Express, K. Krithivasan's total compensation of ₹26.52 crore for the fiscal year 2024–25 was much less than that of his colleagues. The CEOs of HCLTech, Infosys, and Wipro, for example, received ₹84.16 crore, ₹80.6 crore, and almost ₹53 crore, respectively. For the latest and more interesting financial news, keep reading Indiatimes Worth. Click here.


India.com
an hour ago
- India.com
Good news for Anil Ambani as Reliance Group plans to invest massive Rs 18000 crore in...., plan is to...
Anil Ambani (File) Good news for Anil Ambani: In a significant update for Anil Ambani, Anil Ambani's Reliance Group has charted a massive Rs 18,000 cr growth path with a focus on defence, power and clean energy sectors to chart the next phase of growth that will train resources on innovation and value creation, it said on Sunday. At a time when financial crime-fighting agency, Enforcement Directorate concluded searches at locations linked to the group as part of an investigation into alleged money laundering and siphoning of public funds, over 100 top leaders from its two listed firms — Reliance Infrastructure and Reliance Power — convened in Mumbai on Sunday to reaffirm their commitment to its ambitious growth roadmap. 'After the unanimous approval by the Board of Directors of Reliance Infrastructure and Reliance Power, just a week ago by both boards to raise Rs 18,000 crore by way of equity and debt to fund growth across defence and aerospace and renewable energy sectors, the meeting reflected unity of purpose, renewed vigour and a shared resolve to deliver long-term value for stakeholders,' the group said in a press statement. The two listed firms in separate statements earlier in the day stated that the action by ED has concluded and that the company and its officials have fully cooperated with the authority. 'Action by ED has no impact on business operations, financial performance, shareholders, employees, or any other stakeholders of the company,' they said. In the statement on the leadership meeting, the group said its two listed companies — Reliance Infrastructure and Reliance Power — are 'nearly debt-free, have net worths of Rs 14,883 crore and Rs 16,431 crore, respectively, and have 50 lakh public shareholders, one of India's largest shareholder family.' The leadership meet, it said, spotlighted high-growth verticals driving the group's future strategy. Reliance Infrastructure's focus will be on defence and aerospace, which includes plans to manufacture Falcon 2000 business executive jets in India for global markets in partnership with Dassault Aviation of France, strategic partnership with US-based Coastal Mechanics to establish MRO and overhaul hub in Maharashtra, partnership with defence manufacturer Rheinmetall AG of Germany, and strengthening strategic partnership with Diehl Defence of Germany for guided munition/terminally guided munition (TGM). (With inputs from agencies)