Tata Motors Passenger Vehicles Limited (TMPVL) has initiated a postal ballot process to seek shareholder approval for significant board appointments and remuneration packages. This move follows the company's recent demerger that separated its passenger and commercial vehicle businesses into distinct entities.

Key Appointments and Remuneration

The postal ballot notice outlines three crucial appointments:

1. Shailesh Chandra: Proposed as Managing Director & CEO

   • Remuneration: Up to ₹4.00 crore basic salary annually, plus performance bonuses
   • Term: 3 years, effective from October 1, 2025

2. Mrs. Sudha Krishnan: Proposed as Non-Executive, Independent Director

3. Mr. Pathamadai Balachandran Balaji: Proposed as Non-Executive Director

Voting Process

• E-voting Period: November 29 to December 28, 2025
• Eligibility: Shareholders as of November 21, 2025 (Cut-Off Date)
• Method: Remote e-voting through National Securities Depository Limited (NSDL)

Financial Context

To provide context for these corporate actions, let's examine TMPVL's recent financial position:

The company's financial position shows a slight decrease in total assets but a notable increase in total equity, indicating improved financial strength. The reduction in current liabilities by 10.62% suggests better short-term debt management.

Implications

1. Strategic Leadership: The appointment of Shailesh Chandra as MD & CEO, with a substantial remuneration package, indicates TMPVL's commitment to strong leadership in the automotive sector.

2. Board Diversity: The proposed appointment of Mrs. Sudha Krishnan as an Independent Director may enhance board diversity and bring fresh perspectives.

3. Financial Expertise: Mr. Balaji's proposed role as a Non-Executive Director could bring valuable financial acumen to the board.

4. Shareholder Engagement: The postal ballot process demonstrates TMPVL's commitment to corporate governance and shareholder participation in key decisions.

5. Post-Demerger Strategy: These appointments suggest a focused approach to the passenger vehicle business following the demerger from the commercial vehicle segment.

Shareholders are encouraged to review the detailed postal ballot notice and exercise their voting rights through the e-voting platform provided by NSDL. The outcome of this vote will be crucial in shaping TMPVL's leadership and governance structure in the coming years.

Tata Motors Passenger Vehicles Limited (TMPV) faced a challenging second quarter, reporting a consolidated profit before tax (PBT) loss of Rs 5,500 crore. The significant loss was primarily attributed to a cyber incident at Jaguar Land Rover (JLR) that halted production for the entire month of September, resulting in a 24% revenue drop for the luxury car maker.

JLR Cyber Incident Impact

The cyber attack on JLR had far-reaching consequences:

• Production shutdown for the entire month of September
• 24% revenue decline for JLR
• Loss of approximately 50,000 units in production
• Negative EBIT margin of 8.6% for JLR
• Negative free cash flow of £791 million for JLR

JLR CEO Adrian Mardell stated that the company expects an EBIT margin of 0-2% for the full year, with free cash flow projected between negative £2.2-2.5 billion.

India Passenger Vehicle Business Shows Resilience

Despite the challenges faced by JLR, the India passenger vehicle business demonstrated recovery:

• 15% year-on-year revenue growth
• 10% volume increase
• Record-breaking sales in September and October, with over 60,000 units sold in each month
• Market share improvement to 12.8% for the quarter, with post-GST festive months reaching 13.7% to 14%

Electric Vehicle Segment Gains Momentum

TMPV's electric vehicle (EV) segment showed significant progress:

• EV penetration increased from 12% to 17%
• Record EV retails of 9,000 units during the festive season
• Harrier.ev launch contributing to increased EV sales, with a run rate of about 2,500 units per month
• EV market share consistently at 42%

Financial Highlights

Future Outlook

TMPV management outlined several strategies to improve performance:

1. Ramping up JLR production to full capacity for the remainder of the fiscal year
2. Launching new products, including the Sierra
3. Expanding the EV portfolio and improving profitability through PLI accruals
4. Implementing cost reduction measures and potential price increases in Q4

Shailesh Chandra, MD & CEO of TMPV, expressed optimism about the domestic market, projecting double-digit growth for the industry in the second half of the fiscal year.

The company faces challenges in global markets, particularly in China, where luxury vehicle demand remains weak. However, TMPV aims to leverage its strong brand recall, especially for the Range Rover, and focus on expanding its presence in international markets, including a recent entry into South Africa.

As TMPV navigates through the aftermath of the cyber incident and global market challenges, the company's resilience in the domestic market and growing EV segment provide a silver lining for its future performance.