Tata Motors Ltd

NSE:TATAMOTORS

Good day, and welcome to Tata Motors Q4 FY '25 Earnings Call. Today with us are Mr. PB Balaji, Group CFO, Tata Motors; Mr. Girish Wagh, Executive Director, Tata Motors; Mr. Shailesh Chandra, MD Tata Motor's Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited; Mr. GV Ramanan, President -- Vice President, Finance, Tata Motors Limited; Mr. Dhiman Gupta, Vice President Finance, Tata Motors Passenger Vehicles Limited and Tata Motors Passenger, Electric Mobility Limited; Mr. Mr. Adrian Mardell, CEO, Jaguar Land Rover; Mr. Richard Molyneux, CFO, Jaguar Land Rover; and we also have our colleagues from the Investor Relations team. Today, we plan to walk you through the results presentation followed by Q&A. [Operator Instructions]

I now hand over to Balaji sir to take over. Over to you, sir.

Thank you, Anish. Standard safe harbor slide. The only difference you will notice going forward would be Tata Motor's Finance is no more a subsidiary of Tata Motors, Tata Motors Finance holding still is, but the NBFC is no more has been merged with Tata Capital. So I'm going to talk about the implications of that in the coming slides. Next slide, please.

Overall, it's been an action-packed year and both here and in JLR. Those of us who are their auto expo in Delhi earlier this year, you saw the full impact of [indiscernible] launched as well as you saw the car, this year being a meal, there is probably the standard as far as the auto [indiscernible] it was concerned also, we saw the new [indiscernible] there as well. We started also shipping our first hydrogen trucks which are now going to apply on specific claims, and I'm sure excited -- Girish is going to talk about in his session. And lastly but not the least, functionalities are top choice supplier by us to become India's #1 SUV in FY '25, a humongous achievement there.

Next slide, please. As far as JLR, it's been an absolutely wonderful year coming out of JLR. The net cash positive target has been achieved. We delivered what we committed to our guidance despite the extremely challenging situation elsewhere. The Freelander licensing agreement has been announced for CJLR. Range Rover electric continues soon to be launched. And the first Jaguar type [indiscernible] you grow who else? I mean what can you say about it other than the head turner was. And Defender [indiscernible] now starting to get delivered to its clients. One more blockbuster vehicle coming away. Next slide, please. On overall numbers basis, for the quarter, it was a INR 119,000 crores with an EBITDA [indiscernible] and [indiscernible] of INR 19,400 crores. This is our highest ever revenue in as far as -- this financial year, we delivered our highest ever revenue. We also delivered our highest ever PBT before exceptional item. And we -- Q4 is always a strong quarter, so we did see a sequential record. And of course, we did get aided by the INR depreciation vis-a-vis the form. On a profitability line, significant interest savings. I'm going to talk about it in a minute. Better CV profitability look over DNA and JLR, these are the main ones that drove the profitability up, but the underlying profitability continued to remain very healthy.

And free cash flows came in at INR 19,400 crores. On a full year basis, we have delivered very strong FCF of almost INR 50,000 crores over the last 2 years, thereby delivering our delivery commitment. Next slide, please. Where did the growth come from? It is there for all you to see, but I'll draw your attention to the net debt number. While we ended FY '23 at INR [ 48 ],000 crores the peak debt this business had almost INR 50,000 crores. That's now down to minus INR 1,000 crores, a cash of INR 1,000, despite external leases of almost -- I mean, financial leases of INR 9,000 crores. So this is a very strong performance. And this is translating into a reduction in net finance costs. And why I'm harping on that point is that intensity has become business is becoming far more resilient as it takes away debt and we're able to now have more leverage leeway to take on the headwinds that come our way. Next slide, please. On the corporate apps slide, I'm going to come in a minute. But before that, these charts tell you the performance over a long period is the FY '10 to FY '25 each of the data points in [ 5-year ] tells, I just show some prior intervals for this. a record high revenue, almost record high EBITDA of almost INR 57,000 crores, a record high PBT of INR 34,000 crores.

And investment, we did our highest ever investment of INR 48,000 crores. And despite that generated an FCF of almost INR 22,000 crores or something in debt going down to minus INR 1,000 crores. And all this done with a very strong FCF of 17.6%. And this business has come a long, long way from what it was in its turbulent times. And for a huge callout and a huge thanks to every one of the people who have been working tirelessly in the business to deliver this set of graphs. Next slide, please. And this, of course, is translating into credit ratings, again, [ 2 ] upgrade we received this year, and we hope to get more as we go forward. Next slide, please. The final dividend, if you recollect last year, we had a INR 3 ordinary dividend, and we are at INR 3 special dividend. Delighted to say to with a final ordinary dividend of INR 6 per share. Total same as last year, but all of this is now final ordinary dividend, [ 300 ] of face value.

And obviously, it will have to be approved in the ensuing shareholders' meeting. The demerger update, we are an overwhelming what's in our favor. And therefore, we are on track for an appointed date of July 1 and an effective date of October 1. This year, we also have the PLA benefit. These are the updates that you see a total for the year of almost INR 500 crores of PLI benefits have been secured. This order with [ 142 ], we had it in the last quarter for FY '24. And this quarter, for the rest of FY '25, we got about INR 385 crores, and the implication of margins are there. Next slide. Just to take a minute on the Tata Motors Finance merger that has just been concluded. This will have -- given that it is a financing company, therefore, it earns before interest and its costs are below interest below EBIT. And therefore, that's why you see a 50 bps delta that is there. At the same time, there's a significant shift in the liabilities line and the finance receivable slide, where balance sheet, you'll see almost INR 30,000 crores shift in finance receivables. And the borrowing is also down by almost INR 31,000 crores, gross borrowings. So significant shifts in the balance sheet because of this, which makes the business less risky as we go forward.

Next slide. Let me now hand it over to Richard to take us through the [indiscernible]. Richard, over to you.

Can you hear me?

Yes, we can. Go ahead.

Right. So this chart summarizes our financial results for the full year on the right and for the quarter in the middle. Volume revenue were relatively flat over both periods. EBIT was 10.7% in the quarter and just over 8.5% full year aligned with our guidance. PBT for the quarter at GBP 875 million was the highest quarter in PBT we delivered in 9 years and drove full year PBT to GBP 2.5 billion.

Cash flow, GBP 1.35 billion in the quarter allowed us to end the year GBP 278 million of net cash. So our other main piece of guidance delivered. The main care point that I will refer to on later chart is, however, EBITDA, which fell 1% Q-over-Q and 1.6% year-over-year. So to the next chart. As per usual, I'll skip over this chart as I'll cover all the messages we go through the pack, the key data is, however, here for your reference. Okay. So in terms of wholesale. Wholesale for the quarter were flat, 110,000 to 111,000 units. And for the full year also at 401,000 units. In this chart, come to the next chart, Q4 will be top FY '25 at the bottom. And because the full year and the quarter, in this particular case, to say the same story, I'll just refer to the bottom section of the chart. As we are ceasing the production of the next 2 Jaguars, Jaguar's volume is essentially half year-over-year from 50,000 to 27,000 units. With that volume moving into Defender. Defender had yet another record year over 115,000 units. That, again, is the highest number of Defenders we have ever sold since 1947 when the car started.

And we also increased volume of Range Range Rover Sports [indiscernible], which drove the Range Rover brand sales to 225,000 units, up 12% year-over-year. Next chart. So originally, I'm looking at Q4 data first in the top half of the page, our recovery in the U.K. continues from a couple of difficult quarters, closing the year flat versus FY '24. Europe has been robust for us, up 12% quarter-over-quarter, although on a full year basis, we're down 9,000 units, most of which is the effect of legacy Jaguar cars being removed from sale. China remains a challenging market, not just for us and sales were down from 13,000 to 9,000 in the quarter as we adjusted down our days supply stock levels at the retailers. So our day supply stock levels ended the year, both below Q3 and below the end of FY '24 levels, and that is to protect the quality of our sales going forward. The overseas region was down both quarter and on a full year basis, although this is from an absolutely stellar FY '24. If you look at the full year numbers in FY '25, the 70,000 units or 70,500 units. Actually, that year is 21% higher than FY '23 and 40% higher than FY '22.

So we've been on a real steep increase in overseas, just to come back a little bit in FY '25. I skipped one market, you may have noticed. The biggest market for us now is North America. 34% of our wholesale line quarter and 32% full year. This reflects really strong affinity with both the Range Rover and Defender brands. We did push hard in Q4 as we fears tariffs were coming, but that shouldn't mask the underlying success of our North American business in recent years. Next page. So this chart shows the walk of PBT from the same quarter last year when we earn GBP 661 million to this quarter's GBP 875 million. Volume and mix were relatively flat, fewer low-margin Jaguars but also a lower mix of China cars. We had increased emissions costs. Our royalties from our China JV for local cars get towards their end of life. Net pricing was adverse. BME up 5% versus the 2.6% a year ago. And only about half of that effect was offset by variable cost improvements. We did have a big pickup in structural costs, particularly in D&A being favorable GBP 200 million versus last year. Over half of this is the cessation of Jaguar production at both graphs and CB and the associates and amortization of vehicles that were built there.

The rest is largely due to the extension of our ICE portfolio as we adjust the global debt market. Affects from commodities largely moved favorably for us. Sterling was weaker by Q4 last year on average, helping operational FX. But actually, the dollar weakness took over towards the end, allowing our balance sheet rebound also being positive. Again, on this chart, you can still see the main challenge for us is EBITDA and much of our transformation efforts I'll cover later in this presentation are in space. Next page. Well, on a full year basis, taking PBT through to cash. Cash profit after tax remains strong at GBP 4.5 billion or equivalent to about GBP 11,300 per car. This is slightly down on last year, reflecting the contribution profit worth on the prior page. Investment did come in on the forecast at GBP 3.8 billion, just a touch below, giving free cash flow before working capital of GBP 735 million. Working capital was strongly positive as we optimize to reach our net cash target in receivables and in inventory. The big element to other there, you can see in the text, that is largely the working capital, favorable effect we get through warranty and emissions.

Next page. So from a perspective of investment, it fell in Q4, allowing us to come in just below GBP 3.8 [ million ] of our engineering, we capitalized 6% to 7% for the year. This is to be expected as most of our engineers are working on cars in a relatively near the end of their development cycle. Next chart. So one of my favorite charts. This shows the -- our cash journey over the last 3 years from a net debt position of GBP 3.2 billion at the end of FY '22 to GBP 0.3 billion net cash now. You can also see we generally kept cash levels relatively stable to run the business. But do note that with the tariff uncertainties pending at the end of last year, we deliberately ensured that our most recent cash levels, we're at the highest end of our range. So we ended the year with GBP 4.634 billion worth of cash, and that was deliberate given the uncertainties that we face in the market. Right. Moving to the future. Next page. I've managed to get through all of this without saying tariffs yet. So tariffs, it's certainly been a journey over the last couple of months and a journey that probably still has not reached its end.

We welcome the deal between the U.K. and the U.S. government that addresses a 25% septal tariffs, suddenly imposed on automotive sector, but also in steel and aluminum. And it brings the automotive sector in line with the other U.K. businesses in paying a circa 10% tariff on shipments to the U.S. We're working through the detail. We continue to offer the government our support and will also support our efforts at an EU level to address EU U.S. tariffs, which impact our Defender and our Discovery product exported from our Slovakia plant to the U.S. Where we stand today is that we'll pay tariffs -- sorry, we'll pay a 300% increase on the tariffs we used to pay in the U.K., so going from 2.5% to 10%. We also pay a 1,000% increase on the prior tariffs on Defender and Discovery out of our EU plant. To the [indiscernible] remain difficult. And our high investments in future products will continue. So we need to react. Business as usual will not work in FY '26 and '27. So we've launched a series of special focus programs or missions to protect EBIT from the threats of tariffs and the other threats that we face.

Next page. The moves some of these transformation missions. Some of those we have set up, some of them will go through in weaken at Investor Day. We know we have to drive ExWorks now through technical changes, commercial negotiations with suppliers and content rebalancing. Together, we spent GBP 16 billion a year in this area. So we are systematically with cross-function teams identifying opportunities in every area of the car. There were 160 people in a meeting room next to me earlier on today, doing precisely that in response by area of the car. We also need to do more to tackle our warranty costs be quality delivery and a faster response issues of a result. Customer love is the [indiscernible]. You might be surprised to find that on the list, but it's crucial to improving our customer loyalty. along with the warranty issue. And customer loyalty, brand loyalty is a crucial value driver. It's a customer that is valuable. China resilience, we've spoken about several times we now have dedicated teams looking at regulations by market to optimize any emissions liabilities that we have. These are just examples. There are more and we'll share more detail on Investor Day.

Next page. We built a history of meeting our process of delivering on our guidance. But the economic fabric of our global industry is in flux. So it will be inappropriate for us now to give third earnings guidance for FY '26 today, less than a week after the framework of the U.S. U.K. trade deal was announced. We'll see you again at our Investor Day on the [indiscernible] June to give you an update then. But what I will say now, however, is that our GBP 18 billion investment program over 5 years remains in place. It has due to drive our business forward, and that will commit to find that GBP 18 billion with operating cash rather than per period. So we'll give you more information at Investor Day. You now have even more reasons -- so I look forward to seeing you then. And in the meantime, I'll hand you back to Balaji.

Thanks, Richard. Let me now move to the commercial vehicle business, Girish and Ramanan, would you want to take a lead on this?

Thank you, Balaji. Next slide. Our domestic bond market share stands at [ INR 37.1 ]. When we look at the market share by [indiscernible], trucks are holding on to the market share and passenger is coming back with 100 bps improvement in market, both trucks and passengers have performed better than the industry. Passenger market share has come down, and this is an issue. Next slide, please. On the financial performance, the business has consistently delivered double-digit EBITDA margins quarter-on-quarter and has delivered an EBITDA of 12.2% and an EBIT of 9.7% in Q4 FY '25. This is an improvement of 20% in it, respectively, over Q4 last year. On a full year basis, EBITDA was marginally lower than 12 and EBIT was at 9.1, driven by better realization and cost saving. This is an improvement of 100 bps and 90 bps, respectively, over FY '24 on a full year basis. The business delivered the highest ever PBT of INR 6,600 crores and a strong ROCE of 37.7%. Overall, the very strong financial performance. Coming to the EBIT -- next slide, please. This is a comparison of the PBT from Q4 '24 to Q4 '25. Mix optimization and realization improvements have been the key drivers.

There's been a slight increase in fixed cost, overall, a 10-bps improvement in EBIT over the same time last year. With this, I now hand this over to Girish for the industry on sites and business highlights.

Thank you, Ramanan. So the total industry volume improved marginally in Q4 on a Y-o-Y basis. And just to give you a perspective, you will recollect that in quarter 2, the industry had shown a significant double-digit decline on a Y-o-Y basis. This decline reduced in Q3, and therefore, it was a single-digit decline. And now in Q4, the TIV has been either flat or slightly growing over the previous year, which is actually a good sign. Average utilization in trucks and buses has grown quarter-on-quarter, and the transporter profitability have also improved margin. We see that the freight rates have improved in Q4 by around 1% to 2%, which is supported by better utilization due to stronger commodity movement, stable agri sentiments, seasonal demand for white goods has also improved infra mining activity.

The customer sentiment index, which we measure quarterly internally, it indicates that defer sentiment index has improved marginally, which indicates good mining and infra activity. On the other hand, JV commercial within cargo and the intermediate light medium commercial vehicle as well as SUV pick up the sentiment index has almost remained flat. Commodity prices in the quarter gone by remain range bound. We are now looking at an impact due to the safeguarding duty, which has been already implemented. So we are assessing the impact and should be there in maybe 3 weeks time. Going next. On the vehicle business, in quarter 4, as I said, the industry volumes improved compared with the decline in earlier quarters, this is a good sign. In Tata Motors, both buses and trucks registered a healthy growth in Q4. Digital selling, which is something that we have been pushing for, I think the contribution to retail in terms of leads generated is now almost 27% and has been increasing quarter-on-quarter. On eighth June, the entire truck portfolio, both Camino is supposed to undergo change over to AC regulation. This is a manufacturing date transition, and we are getting ready for the entire portfolio to move towards AC segment.

In electric mobility, in Q4, we delivered 89 electric buses. So this is now towards the tail end of the first CSL tender that we had won. We now have more than 3,600 electric buses on the road. We also started supply in private accounts, first few buses being delivered. On small commercial vehicles, now we have more than 8,000 electric vehicles lying on the roads. And in Q4, we saw expansion in some new segments like make and MPG. You also won multiple bulk deals and municipal deals in quarter 4. Our overall sustainability targets are on track for decarbonization as well as circularity. In the Smart City Mobility business, as I said, our fleet now has crossed more than 310 million kilometers, and consistently delivering more than 95% of that. Out of these 3,600, we have 2,500 buses in Delhi, Bangalore and Jammu and Srinagar. Deployment has been completed in Jammu Kashmir, Bangalore and Delhi. And from Bangalore, we also have an additional order around 148 buses. So as I said, I think we have been consistently delivering performance about the contractual terms. And we've also entered into the staff transportation segment, although within the group right now, we are also discussing with a few other companies outside the group.

In our digital business, Fleet Edge now have almost 800,000 active vehicles with multi-active usage of 81% and weekly active usage of around 59%. I think apart from delivering uptime-related services, we are also delivering the machine learning base insights to improve fuel efficiency in real life, solution is named as Milage Sati, and we are able to deliver around 5.5% to 6.3% real-life fuel vision improvement of more than 11,000 vehicles. [indiscernible], which is our digital parts stores is now made open for all B2B users. B2B is our distributors who then supply to the retail channel and also some of the key customers. So a significant portion of our retail channel now actually is ordered through this vehicle stores. Great Tiger in which we have taken a stake is now available for tracking all the shipments on in [indiscernible] with along with our logistics partnerships is helping us to achieve a very high on-time in full delivery and therefore, ensuring there's no loss of sale.

[indiscernible] Voice, which is our digital front for selling vehicles, we now have more than 13,000 vehicles being sold with inquiries coming directly on to the [indiscernible] platform. So that's our digital business going ahead for FY' 26. I think overall level, the macro indicators are on track. As I said, the fleet utilities are improving, sentiment index is stable. And therefore, we anticipate the sustained growth despite global headwinds and also there have been local headwinds in past few weeks. I think our focus will be on, first of all, ensuring smooth transition of EC regulation for trucks. And as has been our past practice, all these trucks will come up with value enhancements and not just introduction of EC. We continue to invest in future technology and new products, especially in alternate peers, model years for value enhancements. We continue to expand our product portfolio has smart digital solutions, and we'll also have some new nameplate launches coming up in the year. In SUV pick up, very clearly, I think the task is cut out for us to increase our market share, regain the market share that we have lost and I think there are 2 things that we are focusing on.

One is launching [indiscernible] in quarter 2, which will enable us to get into the lower end of the small commercial vehicle segment, which otherwise has been using salience in this industry. And at the same time, post the launch of entire [indiscernible], we are now having an integrated plan of ATL digital BTL to increase consideration of this brand. And finally, of course, we will continue to deliver strong double-digit EBITDA margins, cash flows and also strong return on capital employed, which Ramanan also touched upon earlier. With this, Balaji, back to you.

Thanks, Girish. Can I now hand it over to Shailesh and Dhiman.

Yes. Thank you, Balaji, and good evening, everyone. We closely here with the [indiscernible] market share at 13.2%, while our SSP portfolio outperformed the industry, we had some losses in our [indiscernible] portfolio, resulting in an overall market share decline on a year-on-year basis. Shailesh is obviously going to touch on all the actions that we are taking on our tech portfolio in our subsequent slides packet from now. In terms of our teams, diesel continues to be steady at 13%, significant traction in our CNG portfolio, where we have grown 60% year-on-year. Our CNG plus EV penetration at 36% and [indiscernible], well below the tablet threshold. Moving on to EVs. Moving on to EVs, our overall volume for the year was down 13%, largely on part due to the muted traction we had on the fleet side. The industry has grown by 20% this year, largely on the back office part of new launches from H2 onwards. We ended the year with a 55% market share. Near-term market share, there might be some noise as the initial launch activity settled down, and launches in the INR 20 lakh price segment as well as the entire enhancement we are doing on our existing product portfolio to kind of boost in to the rest of the year. Next slide, please. Our difficulty In terms of profitability on account of the muted industry growth that we saw periods of high dealer inventory and it was realization.

The brand spot was the PLI incentive that we started accruing from last quarter. We now have 3 of our products, PCI-certified which we accrued INR 350 crore of PLI incentives this year. Our PBT for the year stood at about INR 1,100 crores, a [ 300 ] decline from last year. Next slide.. EBITDA margin for ICE business for FY '25 was 8.1%, about 1 percentage point lower than last year. Recovery of margin on the back of cost reductions, better mix and operating leverage through the rest of the next 4 quarters will be a key focus for us. A key callout for our EV business. Despite the significant investments, we continue to make in market expansion and our product investments and the price benefits that we have passed on to the customers for lower battery costs for the year the business centered on both EBITDA and PBT positive. Next [ slide ]. Shailesh, over to you.

Yes. Thank you, Dhiman. Let me first start with the industry highlights. So FY '25 was growth moderated to 4.3 million units, and it was a modest 2% growth over FY '24.

We have seen stress in the macro economy also and it had its reflection also in the car industry, where the growth remained muted. And we also saw that -- it was a very discount-driven market across all the OEMs. We also witnessed segmental shifts and it further strengthened in favor of SUVs, which saw 11% year-on-year growth and the sales increased to 55% while hatches and sedans, degrew by 12% year-on-year. CNG has been rough in for the last few years, and this has seen 30% year-on-year growth despite a 2% growth for the industry, and it is also reflecting the growing preference among the personal segment customers also as the CGD network across the country has been increasing. Dhiman already mentioned about EVs that there was a muted situation in H1 in terms of growth. But in the second half of the year, with greater participation of various OEMs and the new launches we did see traction coming back on the EV side, which is auguring well for the growth in FY '26. As far as we are concerned, it has been a year of hits and misses. On the hit side, we clearly saw that in SUV segment on the back of strong demand for Punch, which was the #1 model in 2024, and the launch of Cord,we had an industry-beating growth.

In the CNG segment, which has been growing at a rate of 30% in the industry at an industry level, we were the fastest-growing player in this segment with 60% growth. And the technology that we brought that innovation has really helped and also the launch of Nexon CNG has been a roaring success. So we are growing very fast in this segment, and you have seen how the overall share of India portfolio has gone up to 25% from just 7%, 8%, 2 years back. The big problem for us last year where we witnessed the decline in our volumes and market share was because of hatches and mainly to products, which is Tiago and Altos, which were in their fifth year, and therefore, it was already aged and that led to a significant decline in our hatches volume. Having said that [indiscernible].

Just give us a minute, please, we seem to have lost Shailesh. Sorry, just give us a minute, please. Shailesh is having some issues. Why don't you step in until Shailesh joins.

Yes. I think I just carry over from where Shailesh left. This was a year of -- it was a mix bag for us. I think Shailesh mentioned where I think we have post the industry growth in terms of our SUV sales, the word reception that we got for both and [indiscernible] introduced in Q4. We did lose a bit in terms of hatches, especially because of our aging that had happened in the portfolio, both for Tiago and Altos. Part of corrected in Q4, we introduced Tiago, the refreshed model year '25, that has found very good traction in the market. And as a lot, you would have seen, we are refreshing the crossed was introduced in 2021, and we haven't refreshed it for the last 2 years. And we are coming up with a midcycle enhancement of the launch of planned shopping this month. So with both the actions, we believe some of the market share decline that we have seen through the year, we should produce or things -- yes.

Got ahead. We are the last second, if you can talk about after sales and beyond.

Yes. Okay. So in FY '25, it was the year of consolidation for us. And we spent some disproportionate focus in areas like after sales, where we had an issue of service capacity. And we took an aggressive target in terms of way additions, especially in the 21 hot spot cities where we were seeing customer experience really getting impacted. So we were able to really expand our presence in these 21 hotspot cities, and we are very comfortable in 16 cities now. On product quality side, there were certain issues that we face, especially on the software area. And therefore, we not only took initiatives to fix them fast, but also have taken significant actions on software integration aspects and the process aspect. And I think that has been a key area of effort for us in the H2. Also, the network growth and also network health has been a tremendous focus for us in the H2, could not only be increase the number of corporates by 73, but also we took series of action to ensure that the health of our network remain intact.

So that was broadly in terms of the highlights of the financial year. If we go to the next slide, please. What will be the focus areas for FY '26, I think we have to regain our growth momentum and drive both volumes and profitability. FY '26 as per the triangulated view that we see from various agencies and OEMs is that it is going to be moderate pretty similar to what FY '25 was. Our focus would be to deliver industry-beating growth because one that possibly this year is the strongest product cycle for us. Freshest portfolio. So as I said that our main issue was on hatches. We have a low base of FY '25. We have already a refresh, which has got launched and I talked about the growth that we have already seen in the refresh Tiago by 20%. And this month, we are also launching the Altroz, which saw the significant decline last year. So both these products will be would have got interest from the life cycle intervention perspective. On the SUV side also, we will be coming with multi-power train on Harrier and Safari, including the petrol version. And at the same time, there will be revarianting and repositioning of certain products in the portfolio. We have the full year for Nexon CNG. And also we are going to launch Sierra. So even SUV is going to be strong.

So it's a very strong year for us. On the EV also, we are going to strengthen not only the value proposition of the existing product as Dhiman talked about in terms of value price equation, but also the addition of 2 new products, which Harrier EV and Sierra EV. So it's going to be a strong year for us on the EV side also. Brand under consideration, which got impacted last year because of customer experience issues that I've already talked about. So improving customer experience, brand associations and comprehensive marketing campaigns will be the flavor of this year for us. Mainstreaming of EV's actions around ecosystem charging infra open collaboration is what we have already spoken about in the earlier conversations also, that will also move very aggressively and we'll focus on certain micro segments also. So those actions are fundamental foundation that we'll continue to work on. Our sales network, I already spoke about that this has become the focus after a year of consolidation.

And the effort will be to skew our stores towards more larger formats as the portfolio is expanding. And cost reduction initiative remains critical to us to ensure competitiveness and profitability in a tough environment. And this engine has been delivering well for us, and this will continue. So back to you, Balaji.

Thank you, Shailesh. Let me quickly conclude the section go forward, please. Overall, free cash flow for the year came in at INR 6,900 crores. Again, this is the highest investment that we have done of almost INR 8,400 crores in [indiscernible], all of which funded out of operating cash flows. Next slide, please. And there is a breakup of the INR 8,400, we won't spend too much time on that to. Go forward. So where do you see going forward? I think I'm sure the tariff is probably going to be top of mind for all of you, I can see lots of questions there land which we pick up, but as an outlook. I think it's fair to say that the tariffs and the related geopolitical actions, counteractions are making the operating environment uncertain and challenging.

Owing the fact that JLR is in the global premium luxury segment as well as the Indian domestic market, these are expected to weather this relatively better. And you've seen the performance of this business over the last year, many years, and we have consciously strengthened our fundamentals, and we believe the business fundamentally are fine. And therefore, that gives us the confidence to remain focused on executing our growth strategy flawlessly, serving our customers better. And at the same time, being clear of the new reality, maintain a very heightened vision on costs and cash. at the same time, continuing to invest in the future. So it's business as usual as far as all things, investments growth are concerned. And of course, from a cost and cash perspective, we will continue to keep extremely tight. So that's a broad message I would want to leave you with. All all a great year the way it ended. But I believe despite all the external challenges, we are well placed on. And obviously, we hear more about this in greater detail at the Investor Day both in Tata Motors here in Mumbai, June ninth and JLR, Investor Day on June 16 [indiscernible]. So look forward to seeing you there, and of course, taking your questions now.

Thank you. So let me now quickly move on to questions. I'll probably start with Chandramouli, Goldman Sachs. There are tons of questions that have come on the U.K., India market situation, the fact that there is a free trade agreement that has been signed, what are the implications on -- the questions are from all side, what happens to volumes, what happens to pricing? What happens to the Chennai plant? Let me break this up into 3. First of all, if you look at the Range Rover franchise in India, Range Rover, Range Sport, Evok, Vilar, all of them are already localized manufacturer on the CKD operation out of Pune already. And therefore, these cars, there is no impact as far as the FDA is concerned. Therefore, there won't be changes all the benefits in terms of CKD operations already in the price and past changes in price expect on any of these at this point in time.

However, the future cars that are going to come in, the ability to access these global cars at global prices, it went up significantly because of this decision that has happened. Obviously, we had seen a fine print there are quotas [indiscernible]. There is also about a reduction over a phased period of time. All this fine print is expected. And until such time, I would only request patients from all of you until, we see the fine print. We can interpret only if we see the fine print. So do bear with us on that one. Let me then move on to Shailesh. I think it's coming on PV, Shailesh. What are some milestones that need to be across the India PV business, you reach double-digit EBITDA margin -- and maybe you can take all the questions, what are the rough [indiscernible], what happens to meeting [indiscernible]? What do you see as a fair market share target? And how do you also see this changes in this FDA agreement with Global competition coming in, how do you see it? Can you take all these questions in one short, Shailesh?

Yes. Thanks, Balaji. So as far as EBITDA margin is concerned, we were pretty much there in quarter 4 of FY '24. There's now a gap of about 2%. We exited the year at about 8.2%. Maybe we see it is going to come from the cost reduction initiatives, which consistently has been delivering about [ 2% ] of revenues. And then it's about optimization of pricing in VME and also the model mix, which is expected to become richer with the new launches. So all this would be in combination should deliver more than 3% or so, but it will then get offset with some of the commodity price increases that we might see. Also with every refresh every new model launch, we are increasing the tech and feature in the car. So those would be the offsetting cost elements. So net-net, I think we are very much on track towards 10% plus EBITDA. So that's on question one. What is the rough EV mix to comply to CAFE 3 norms? I think still, this is under discussion. And therefore, it will not be fair. But if we have to really go by what the government has been saying so far or BEE, which is Bureau of Energy Efficiency has proposed it would mean 10% plus EV penetration for a manufacturer like us.

And you already see that we are at 11%. So we are pretty comfortable with the growth coming in for us in future and penetration aspirations being 30% plus by FY '30, I think we are pretty much on track and safe. Then the question was also on what should be the fair market share in electric market once all the launches of most of the peers come through in the next 12 months. See, we are one, we are aspiring to keep our market share above 50% plus. Dhiman mentioned that there will be short-term pressure because whenever a new product gets launced, typically the sales volume at 2x of the steady-state volumes. So there will be -- most of the launches have happened recently, and it will continue. It's very launch action year for all the OEMs. So there will be short-term volatility, but our aim with all the actions that we are going to take and maybe I should elaborate a bit on that. We see broadly 4 segments in the EV space now. One is the entry segment, which is that of city cars, less than INR 12 lakhs. And I think here, we have a 75% plus market share with products like Tiago and Punch. We are going to take certain actions in this space here. The requirement would be to come closer to the price parity with ICE and also a range should be comfortable.

So we will overcome some of the barriers that still remain in this segment and expand this segment where we have a very high market share. But there's a mid segment, which is also from INR 12 lakh to INR 20 lakh, which is seeing intense competition. This is where the whole action is. There are -- all the manufacturers are coming with a product in this segment. And therefore, intensity will be high. The way of winning the game in this segment, there will be short-term action from us, but also more midterm, which is 18 to 24 months action to ensure that we dominate this segment also. Right now, our market share would be about 30%, 33% in this segment, but this is the crucial segment where maxim volume would lie. And then there's a INR 20 lakh-plus segment, which is emerging, which is also showing great promise. And 2 products are going to get launched in this segment, so that will be completely additional volumes for us with through Harrier EV and Sierra EV. And the fourth segment is actually fleet. Now fleet segment, so far, we had addressed the issue of total cost of ownership against diesel, but there's a big market of CNG, and this is where our focus is to ensure that the value proposition of our free product surpasses that of CNG.

And therefore, they should also help us tap greater volume. So therefore, with all these actions in short term and then the renewal of our portfolio with more promising product in the 18 to 24 months. I think this should help us keep our market shares above 50% in midterm. I think short-term volatility, we want to be worried about. So this was on the EV side. Given your experience, this was right, right, Balaji? Any other question?

That's correct, Shailesh. Let me pass it on to Girish comment on CE. What's your outlook for industry growth the multiple people have aspect.

Okay. So I mean, before I come to the growth, the few drivers first, I think the freight rates are holding up. The utilizations are up on a Y-o-Y basis by around 2% to 5%, depending upon the segment. Then as I said, the sentiment index is stable and in fact, gone up for tippers. So largely, the macros are also positive. And I mean, if we leave aside the event that has been there for the last 2 weeks or so, which has created some challenge in the Northwestern states, I think overall, we still feel that we should see a single-digit growth across all the segments and within the segments, slightly better growth for HCB, maybe heavy commercial vehicles and buses and slightly lower for ICV and still pick up. So that's how we see the likely growth within quarters where in Q2 should see a better growth on a Y-o-Y basis. One of the reasons being the base effect. But otherwise, on the overall business, I think we should see a single digit growth. Balaji?

thank you, Girish. Richard, coming Raghu from Nuwama Research. Questions on JLR. -- emission cost increase was at GBP 36 million. So how much increase is expected ahead on electric, when is the launch expected considering the large waiting period and also how much will be depreciation post this launch. And could you then also talk one short the entire tariffs for U.S., how much we've passed on to customers, what about demand scenario, all that. And how can the benefit of cost savings, how much can it flow through in FY '26? And what about CJLR volumes have they reached a trough?

Okay. Let me have a go. So emissions cost for us. This is also an area that is a little bit in flux, particularly in the U.S., the administration hasn't yet taken any actions there, but we know that they are looking at the California exemption. And some of the states there of examples, for example, are looking at moving away from the association with those Californian emission standards. There's also legislation expected later this year in terms of the overhead EPA levels that are required. So emissions is also an area in flux. You would naturally expect our exposure to increase year-over-year, as a result of our beds being slightly later in the plan that always were later in the plan.

So on the flip side, we know that Europe has taken a few actions to mitigate the level of their penalties. We know the U.K. have already taken action with the ZF mandates to also mitigate some of the effects of that legislation. We expect the same thing will happen in the U.S. too, over time. So this is a little bit of a battle between consumer demands and regulations. And in democracies, ultimately, the regulations will probably have to adapt. That will benefit us -- but in the first couple of years, we still all those changes have worked through, I would expect our emissions costs to rise. Ranger electric -- so the development is continuing. We're actually testing it at plus 40 degrees centigrade in the sands of the Middle East and minus 40-degree centrigrade in the ice lakes of the Arctic. So we are really diligently making sure that this car can do what a Range Rover can do regardless of whether it's got death powertrain and ICE powertrain or any other powertrain. So we're absolutely determinant to make that the best Range Rover it can be. We will expect formal reservations and certain markets, let's say, reservation fees later this year, and the waiting list is currently at 62,000 people.

Next one, tariffs. Right. So on tariffs, we really welcome the deal with the U.K. and the U.S. administration have done in providing a good level of relief from the certain and very steep tariffs applied to the U.K. auto sector in April. But remember what happened on April [ 30 ], suddenly we got a 1,000% increase overlight in our tariff bill for selling cars in the U.S. That's a significant amount. The deal that's being done now between the U.K. and the U.S. should bring that down. However, it will still be a 300% price increase or increasing cost of tariffs versus where we were in March. So it's gone from 2.5 [indiscernible]. So we're happy the deal brings the U.K. auto sector in line with all other U.K. businesses, which also face 10% tariff. Remember, it was automotive, steel and aluminum that were given special treatment on a 25% tariff level. And we're just awaiting from the U.K. government some details as to exactly what the terms of the agreement are and when it will be implemented, in say immediately in the releases, but we're still waiting to hear exactly, either restore or prospect it mean when it will apply, what the impacts on parts are, whether there's any more origin requirements, et cetera.

CJLR.

So CJLR had a difficult year because the vehicle study is producing or coming to the end of their cycle. So for example, production in China of the Jaguar XF XT and our EPC will come to an end in September of this year. Now that's deliberate because you remember, we signed a license agreement with Cherry for the production of vehicles of a CGIR architecture, but with the free [indiscernible]. And those vehicles will start production in our Changshu plant in the CJLR joint venture next year. Those vehicles are of a Chinese architecture with Chinese attributes and Chinese costs. So they're perfectly aligned Chinese requirements. They will have the capability of being exported globally at this stage in the future, but they are initially for the China market only.

So production of Freelander will start in the plant as the runout of our legacy vehicles comes to an end, so it will be Synchronoss and it should allow JLR to benefit not only from essence fees that it will get from the free land brand and our health and net and design of the vehicles, but also from the 50% share of profits that the JV will make going forward. So it's a very good deal for JLR.

Thanks, Richard, maybe one final one, which I missed, apologies for that. How much of these benefits or cost savings you like you are expecting to see in FY '26.

We'll cover that in the Investor Day.

Cool. Thank you. Girish, coming to you question is again from Ragu questions. How do you see the domestic M&HCV outlook for FY '25 trade utilization, how is it happening for transporters. I was also impact of DSC. There's a question that keeps coming every now and then. And AC regulation, there's another one more query somewhere else in terms of the cost of this AC regulation, how is it going to be? And that was...

Okay. So I think as far as the M&HCV outlook is concerned, I have already answering this question in response to a question earlier. So we will have around single-digit growth happening for the entire year within quarters, I think quarter 2 will see slightly higher growth. The second one is about reutilization. So I would say the key utilized at around 2% to 5% higher compared to the same period last year, and this is based on 800,000 vehicles that we track. So this is that we see deliver 2% to 5% growth on a Y-o-Y basis.

As far as Western DFC impact, I think as we've been saying in the past, the Western dedicated trade corridor will carry a lot of export import traffic freight. So a lot of container traffic, therefore, is likely to move to this. And this may impact, to some extent, a tractor travel market [indiscernible]. But at the same time, I think we need to keep 2 things in mind that still on a point-to-point basis, the road sector will be better as compared to rail. And even if there is a movement happening of containers from up [indiscernible], we certainly need the trackers for Hub to spoke as well as the first and last mile moment, especially on the ports. I think on nutshell, therefore, net-net, I don't see much an impact as we are here today. Coming to ASC regulation, Balaji, there is another question also, so I will address it comprehensively. So as far as cost increase is concerned, see the cost increase in percentage terms will be lower or minimal for any commercial vehicles because the base cost is more there the cost impact on the biggest vehicle could be somewhere around 0.5% to 0.6%. But the cost impact for say intermediate light commercial vehicle will be slightly higher, could be in the range of 1% to 1.2%.

But as a company, I think as we've been saying that we don't just comply to the regulations, but we always come up with some value enhancements and therefore, the product make sense for the customer. Beyond this, I think there is another question by Amin, which is about what is the IT impact on the full efficiency. So by physics and engineering, yes, I think when you run the AC, the compressor we consume some power, so there will be some impact. But I'm sure I think like all OEMs, we will be working towards ensuring that this impact gets minimized. And the question whether this will turn out to be a headwind, no, because I think -- in terms of price increase, it will be in the range of 1% to 1.5% and fuel efficiency impact will be lower single digits. And as a company, we will ensure that there is a value announcement we deliver the customer.

Thank you, Girish. So final point on [indiscernible] demerger with Tara Capital stake be part of CV business. The answer is yes. net worth and profit of product capital will take it offline. Okay. Moving to Rakesh Kumar, BNP Paribas, you already answered the question on U.S. tariffs, I will leave that out. Let me get a bit of FCF. His point was FCF in FY '25, the working capital did play a big part. How do you see working capital trending in FY '26.

Okay. So working capital is very seasonal for us. So Q4 is always very strong. That's partly because simply on a calendar basis, our production levels are higher in Q4, and therefore, our payables are high. So you wouldn't expect that to come back in Q1. For the full year, we would also expect that to come back a little bit, although we will keep the diligence on receivables. We will keep the diligence on inventory levels. So we will continue to drive it down. Over the last 2 years, I think our working capital has been about GBP 1.35 billion favorable. In the prior 2 years, FY '22 and FY '23, it was GBP 1.35 billion negative.

So I wouldn't expect massive boast. But during the course of the year, there will be a normal seasonal movements in working capital.

Yes. Just to add one additional color on that. It obviously depends on how the total demand plays out and we are progressing there. So let's watch the space is what I want to say. Just to add to what Richard just said. But just staying with you, there's [indiscernible], Investec from Investec, update on the Chinese market. Let's talk about that, macro outlook, dealership consolidation, launch of EVs, Jaguar and [indiscernible], how do you see that?

Okay. So I'll do the second one first, launch of EVs. I think I've already mentioned that we'll start taking reservations for Range Rover debt this year. In relation to Jaguar -- so you've seen the Type 00, which is the design vision for Jaguar. We'll unveil the first actual part of for GT Jaguar later this year. Before that car goes on sale in 2026. So remember, Jerry does say that it doesn't just do [indiscernible], you can expect the production car to be sufficiently similar, let me say. So that's the timing of Jaguar and Range Over electrics. But the China market, we -- it is tough. It's tough for everybody. We are seeing at least a slowdown in the rate of dealers leaving the premium Western segments and are actually now moving to a scenario where we are looking to fill distribution holes. So that trend, I think, is reaching or will reach relatively shortly a flex point. We are focused very much on making sure we do not overstock the retailers in China. As I mentioned beforehand, we've kept days of supply at the retailers at the end of this year was lower than both at the end of Q3 and at the end of FY '24. So we will manage it very carefully.

Thank you, Richard. Maybe moving on to the VME question. [indiscernible], you already covered extensively, so I don't want to repeat that. Let's talk about VME. There is a step-up in VME this quarter as well about 80-odd bps. Can you throw some light on how we should think about VME going forward.

Yes, that's also where we will need to look at what is going on globally in the industry. We've already mentioned -- I think, Balaji, you mentioned that one of the ways that we would expect some of our competitors in the U.S. to react to tariffs will be to reduce their levels of VME. It is easier and quicker to do a changing price. So that may happen, that may not happen. I think globally, we're still in a position where VME levels are all a trend rise, but it isn't dramatic. And I think we will learn quite a lot from what happens over the U.S. in the next couple of months.

Thank you, Richard. Sorry, I want to continue with you for a while. So this is from Gunjan, Bank of America. Can you talk about region-wise growth? You did cover about it and maybe we want to give a little bit more flavor there? And how should we look at warranty cost trends. And while we wait for the margin update in -- for the Investor Day, can you also talk us for the various levers you're looking at to drive your EBIT margins. Electric time launch line we already talked about.

Okay. So region-wise growth outlook for JLR. We do have a fairly balanced global spread of sales between our 6 regions. So I'm not anticipating a massive change in that. I do think that overseas is an area for us that has further growth potential. I mentioned that we sold 70,000 vehicles there this year. We sold 51,000 in FY '22. So we're on a strong trajectory, and I think there is more that we can do that. [indiscernible] in the U.S. I've mentioned, the U.K. is recovering and Europe, particularly Germany actually is quite strong for us at the moment.

So I don't see a major change in our global sales mix. But I think if everything is going to rise, it's probably overseas U.K. and China is still one we're looking at. Warranty costs -- can I look at trends on warranty costs. It is -- I mentioned it before, and it is one of the key missions that we have set ourselves to get on top of vehicle quality and the time it takes us to respond to quality slips when we find them and the amount of value that we get back from supplies when it was their responsibility. I'm not going to anticipate at this point, any major continued increase in our warranty costs. I think we're aiming to try and get the impact and then to bring them slowly down. Is that the end of that question section?

That's right. Thanks, Richard. So again, sticking with you. I know there's a -- we don't normally talk immediate quarter given all the clear-off that's happening. First quarter, how should we see the first quarter just from a [indiscernible].

So I mentioned working capital. That will definitely speak back in Q1. So not by an immaterial amount. In terms of volumes, we pushed very hard in Q4 to make sure that we met our commitments to you and everybody else, we [indiscernible] got cash an dEBIT. So Q1 probably will not be as strong. We did also, as I mentioned, deliberately push more vehicles through the import structure in the U.S. to get them to the dealers before any tariff effects came in. So that was a bit of an acceleration from sales that we would normally have done this quarter into Q4 last year. So it certainly will not be as strong in terms of sales as we did last quarter.

Yes. Thank you. Also, when will legacy Jaguar wholesale drop to zero?

So we -- it's a good question. So we have already ceased production of the Jaguar XE and XF from -- and as sorry, appetite in Carson Broadridge. That was in May '24. In December '24, we ceased production of the [indiscernible], which mean -- and we're also going to cease the production of the Jaguars in China that I mentioned before on September '25. So that will mean the last Jaguar getting produced is the Xpace, that is produce in our [indiscernible] plants in the U.K. So that will go through the end of this year. And that will be the last Jaguar vehicle is offered for sale before we take Jaguar out completely and launched the old GP based on [ 500 ], which we showed earlier on.

Richard, One -- I mean, a few questions in terms of why other expenses have dropped so much this quarter? Were there any one-offs in that as well as the depreciation line is continuing to trend down just from Gunjan. So -- how should we see this again?

Other expenses drop quarter-on-quarter is largely warranty. And the warranty is also one of the reasons why other expenses year-over-year is significantly [indiscernible]. So there's a bit of a timing effect us to warranty accruals to certain one-off campaigns. Sorry, the questions are just [indiscernible].

Yes. So It will cover that. Perfect. So -- let me move to -- and again staying with you, I think [indiscernible]. Yes, we will update you in terms of EBIT guidance in the Investor Day. What are the developments you are watching for? And how are you looking into this whole space in preparation for the Investor Day? Can you just give us a bit of color on that.

Yes, you've covered some of your points there. So what is what is the implementation date of the deal with the U.K. And will there be an EU-U.S. trade deal. And if so, how we form and shape on that will really take -- so we're already 6 weeks into -- in fact, coming up to 7 weeks into FY '26 for us. So getting some of these issues sorted is going to be really important for us to make sure that we understand where the full year position is. Yes.

Also, sir, again, from Kapil. In terms of emissions, will it delay in emission targets to be positive for JLR, or you will need to step up investment in ICE platforms?

We are we are going to expense the availability of ICE solutions versus our previous plans, simply because consumer demand for those vehicles is there. Ultimately, this whole thing has to be driven by consumer demand.

Governments cannot regulate you to do it certainly in democracy. So we will meet the consumer demand. There is a large number of people in many different regions in the world that are desperate for best. We will give them best. There are some markets, for example, in the Middle East, which will want ICE vehicles for quite some time in the future. That is the market that we are going into. It is no longer one car or one powertrain for the world. They are on different sectors of the market globally that will require different solutions, and we have to adjust to give those customers in those segments [indiscernible]. So yes, we are going to invest more in keeping our ICE powertrains going, but we are also investing really significant money in making sure that our bed vehicles get launched are covered off Range Rover [indiscernible] and jaguar [indiscernible] already.

Yes. Thanks. I'll probably come to you, Girish, because the rest are covered and the question from [indiscernible]. Shailesh has already talked about the PV margins. Can you talk about your drivers for margin improvement and seeing positive negative, both sides?

Okay. So if we talk of the headwinds first, the headwinds, I think commodity is after 2 years, we see some headwind on commodity, and this is coming from steel safeguarding duty. The likelihood of some increase in copper and precious metals is something that we keep a watch on. So therefore, some minor headwinds, I would say, in commodity. AC regulation also, we spoke what is the kind of cost impact which is there only in trucks. And lastly, I think to employ costs a similar kind of impact that you've seen in FY '25. So these are the headwinds heading on. Tailwinds or positive, I think we will continue to work on cost reduction. We have been able to get a good cost reduction delivery over the last 2 years. And our aim is to continue with that. So net-net, I think we are targeting to have cost reduction is going to be more than the increases that we will see during the year. I mean that's where we are.

Finally, I would also like to say that we will continue to increase the value being delivered to the customers, whether it is through product improvements, product enhancements and also a large service portfolio that we now have, including our digital services. So with this, we will continue to deliver better value to the customers, which will also help us to improve the realization. Balaji ?

Thanks, Girish. Kapil is saying on CapEx plan, can you give us a plan for FY '26. So it will be broadly in line with what was there this year. [indiscernible] did at about [ GBP ] 3.8 billion this year. It will be broadly in that zone. PV CV, we did about INR 8,400 crores, that also will be broadly in that zone. But as we have clarified earlier also, all of this will be funded by operating cash flows. So next one is from -- Dhiman, I'll probably give it to you, PDPL has seen a sharp increase in fourth quarter and [indiscernible] prior year -- prior quarter volumes. What is the sustainable run rate for this?

So Balaji, it's slightly been flat. In Q3, the PLI was [indiscernible] INR 180 crore, INR 100 crore of that was pertaining to FY '24 and INR 80 crores was pertaining to the first 9 months for 2 products. This quarter, the PLI versus last year as last quarter was back about INR 170 crores. So I'm not sure whether we are doing right comparison on this number. This quarter, out of this, about INR 30 crores, INR 40 crores was pertaining to Punch -- pertaining to last quarter. For the full quarter, it was about [indiscernible], and we should see that rate continue for the subsequent quarters. We will have Nexon TCA certified also in Q2 when it's going to see a jump and then obviously, [indiscernible] in Q3. So it is going to ramp up through the year.

Got it. So [indiscernible] further clarification to reach out to the IR team that'll be happy to clarify. Richard is probably coming to you from Nishi Jalan. What do you mean by protect EBIT? Does this mean that despite tariff impact, we are looking to protect absolute EBIT through price increases and cost reduction efforts. My immediate response is initial color fire until June [ 16 ], but Richard, please add anything on top of it.

No, that's fair. I've mentioned before -- as it stands today, we have a 1,000% increase in our tariffs from Slovakia through to the U.S. And assuming the government deal both immediate and it says immediate, we still have a 300% increase in our tariffs from the U.K. to the U.S. So we do have to protect our bottom line delivery, and that's exactly what we mean there.

Got it. So I think with this, we are coming to the end of all the rest of the question, a lot of repetition that we see in that. So we think we believe we've covered all the key angles that are there. So therefore, is there anything that critical question that we believe we have missed, feel free to reach out to the Investor Relations team. Once again, thanks all of you for your patient listening and of course, your probing questions. We are wanting to end this session by confirming that it's been a solid delivery this year. The fundamentals are in a very good place in all the businesses. And as the actions start kicking in this year, be product launches, be it on the cost-effective measures that are there as well as what we have delivered last year. I think we're quite confident that all the [indiscernible] situation despite it being challenging. We believe we have what it takes to actually navigate this well. So thank you for all that and look forward to speaking to you soon in the Investor Days, both here and in [indiscernible]. See you then. Thanks to the team, both at JLR and here in the room. Thank you, guys, and good night. And see you soon. Bye-bye. Thank you.