Copyright © HT Digital Streams Limit all rights reserved. Ayaan Kartik 4 min read 27 May 2025, 05:00 AM IST Median Salary increases for management members and key management leaders dropped from 15% in the financial year 2024 to 3% during the previous year. (Reuters) Summary Tata Motors had a 3% drop in the FY25, which was his first decline since 2019-20. Salary increases for drivers have fallen sharply from 15% to 3% amid reduced sales and turnover, increasing concerns about the performance of the total car sector. New -Delhi: Tata Motors, the maker manufacturer, first saw its workforce shrinking in a financial year, when the employee base in FY25 fell by 3% compared to the previous fiscal. In addition, the fiscal also has the median salary increases for its senior managers at only 3% compared to 15% in FY24, according to the FY2024-25 annual report. The twin developments took place in the background of the falling demand for cars, trucks and buses in the fiscal. The total employee score of the country’s third largest car manufacturer, excluding employees of its British subsidiary Jaguar Land Rover, has fallen from 60.113 employees, including workers, in FY24 to 58.442 employees in FY25, the first such decline since 2019-20. In FY24, Tata Motors increased its workforce by 6%. A large part of the fall was due to the decline of non-driver staff to 45,486 during the last fiscal of 47,495 in the year ago. A spokesman for Tata Motors made it clear that the decline in the employee’s score does not reflect the business environment. Read also | How Tata Motors plans to win the market with its hatchback “The change in non-management staff is a year-end position and is not representative of the underlying fundamental companies,” the spokesman said, responding to Mint’s questions. Meanwhile, Girish Wagh, the executive director of the company, was one of the exceptions to the 3% median salary increase for senior employees who received a 22% increase in his salary to £ 8.53. To be sure, the median salary increase for all employees saw an increase – from 6.1% in FY24 to 6.5% in FY25. “The salary increases for directors and KMPs reflect the delivery of the KPI (key performance indicator) and a high base effect,” a company spokeswoman said. The company recorded a muted 1.3% growth in consolidated turnover to £ 4.39 trillion in FY25 as sales fell worldwide. The net profit for the year fell 11% to £ 28,100, from £ 31,800 in FY24. The Tata Motors passenger vehicles division recorded a 7.5% drop in turnover to £ 48,445 crore in FY25 amid a 3% drop in total sales to 556.263 cars. Similarly, the commercial vehicle segment also recorded a 4.7% drop in turnover to £ 75,053, as sales fell by 5% to 358,570 vehicles. The broader industry tends to take these developments at Tata Motors questions about the health of the broader automotive industry. The overall passenger vehicles market (PVS – including cars and SUVs) grew only 2% in the previous financial year to 4.3 million units. In the current fiscal, the expectations of the industry are 1-2%. “The rent in the car sector is seeing a little slowdown, mostly due to lower sales of regular cars and two -wheelers, although commercial vehicles are steady and electric vehicles are still growing,” says Neeti Sharma, CEO of Teamlease Digital. ‘Jobs in traditional areas such as manufacturing, sales and generally are less.’ According to the data from the Federation of Automobile Dealers Associations, sales of commercial vehicles in FY25 were almost flat on 1 million units, while sales of electrical passenger vehicles grew by 17% to 107,645 units in the same period. Read also | From Tiago to Curvv: Tata.ev offers major price cuts and benefits on EV Range Tata Motors not alone in recording a decline in sales. India’s No.2 car manufacturer Hyundai car India Ltd also recorded a 3% drop in sales, with domestic sales dropping to 599,000 from 614,000 in FY24. Certainly, market leader Maruti Suzuki India Ltd saw the growth of domestic market at 3% in FY25 to 1.9 million units, compared to 9% growth in FY24. “Unless something changes, the domestic market will remain subdued,” said RC Bhargava, chairman of Maruti Suzuki India Ltd, after the firm’s Q4 results statement on April 25. ‘In the current year, sales of small cars fell by about 9%. If there is such a decrease in car sales that earn 88% of people, how can we grow? “Natarajan Chandrasekaran, chairman of the Council of Tata Motors, told shareholders in a message:” The Indian passenger vehicle industry has entered a phase of consolidation after years of high growth, with a steady demand tempered by macro economic factors. ” will jump back. “Refresh Launches or Altroz and Tiago (introduced in the first quarter) will help Tata Motors regain lost market share in shutters, while launching Sierra Ice and EV and Harrier EV can strengthen the UV share,” Jay Kale of Elara Capital wrote in a May 14. His total products pick up in a slow car market. with 2.7% dropped against a 2.63% increase in Nifty Auto. tale
Tata Motors’ Hortcount, Senior Pay Printed as Sales Dip in FY25
