AlongSide, the fiscal also Saw Median Salary Hikes for its Senior-Most Executives at 3% Compared to 15% in FY24, According to Data from its annual report of fyust of fy25. The Twin developments Happy 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 60,1113 Emplooyes, Including Workers, In Fyer 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 class the Fall in Employee Count was not reflective of the business environment.
“The change in non-managerial personnel is a year-end position and not representative of the underlying business funds Mint’s Queries.
Meanwhile, one of the exceptions to the 3% media 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 media salary hike for all employees did see a risk – for 6.1% in fy24 to 6.5% in fy25.
“The Salary Increases for Directors and Kmps Reflect the KPI
The company recorded MUUTED 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 seen some Slowdown, Mostly Because of Lower Saves of Regular Cars and Two-WHEELERS, Although Commercial Vehicles Are Steady and Electric VEHICLES ConTINOUE TE 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 brought out Same period.
Tata motors was not alone in recording a decline in sales. India’s No.2 Automaker Hyundai Motor India Ltd also Recorded A 3% Decline in Sames, 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 mutated,” said RC 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 earing, how can we make we expect everything?”
Natarajan chandrasekaran, Chairman of Tata Motors’ Board, said in a message to shareholders: “The Indian Passenger X 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) Capital Wrote in a 14 May Note.
However, a key factor to watch for will be whether the demand for its overal products picks up in a Slow Car Market. “In India, Both Cv and PV Businesses are seeing modiration in demand. Given these headwinds, we have lowered our earrings estimates for tata motors by 12%/5% Over fy26,” Aniket 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.