Tata Motors Chairman N Chandrasekaran has said Tata Motors group will cut its consolidated debt to zero in the next three years. During the 75th shareholders' meet on Tuesday, Chandrasekaran said improving product portfolio and cutting debt to zero will be the top priority for the company in the near future.

The company has a net automotive debt of Rs 48,000 crore. "...currently we are deleveraging this business substantially. Target is to bring it to near zero debt levels in the next three years," he said, reported Business Standard.

He said the company was already taking various steps to ensure it becomes "free cash flow positive" by FY22.

The company is also planning to unlock investment in various non-core businesses, he said.

He said that Tata Motors was committed to its UK venture Jaguar and Land Rover, and that domestic offerings from the company, including recent models like Nexon, Altroz and Harriers, had received good response from customers.

CARE Ratings recently reaffirmed its assessment of Tata Motors across bank facilities and non-convertible debentures and commercial paper issues.

The credit rating agency has cited the company's established track record along with robust backing of Tata Group.

The long-term and short-term bank facilities were reaffirmed by CARE AA- (negative outlook) and CARE A1+, respectively. Non-convertible debentures were reaffirmed CARE AA- with a negative outlook and commercial papers were reaffirmed CARE A1+.

The Tata Sons company recorded a loss for the second straight quarter in Q1FY21 as coronavirus lockdowns negatively hit its sales in India and overseas.

The loss during the first quarter ended June 30, 2020, stood at Rs 8,438 crore, as opposed to Rs 3,698.34 crore loss recorded in Q1FY20 and Rs 9,863.75 crore loss in Q4FY20.