WionDrive News Desk 
Tata Motors is making substantial investments in advanced technologies for the automotive industry, despite uncertainties in future demand. The company has allocated 40 per cent of its investments for the current financial year to these technologies, with the demerged CV business planning to invest around INR 2,500 crore.
A significant portion of this investment is directed towards electrification and alternative fuels, as the company aims to move away from diesel. Girish Wagh, ED of Tata Motors, emphasises that the bulk of the capital expenditure will go towards these areas. The company is also developing fuel cell electric vehicles, with 15 buses already operating in Delhi.
Tata Motors is collaborating with its long-standing partner Cummins through a joint venture called TCPL Green Energy Solutions (GES). This entity focuses on developing and manufacturing sustainable technology products, including hydrogen-powered internal combustion engines, fuel delivery systems, battery electric powertrains, and fuel cell electric systems.
In the electric vehicle sector, Tata Motors claims a leading position in both passenger EVs and electric buses. The company reports 2,700 Tata electric buses operating on Indian roads, having covered 16 crore kilometers with a 95 per cent uptime performance. Over 5,000 units of the Ace Electric have been sold to date.
As the automotive industry trends towards softwarisation, Tata Motors is preparing for the Software Defined Vehicle (SDV) era. While this trend is more prevalent in passenger vehicles, the company recognises its potential utility in commercial vehicles, particularly for improving total cost of ownership and vehicle uptime. Tata Motors has already introduced machine learning technology in its commercial vehicles, leveraging data from its Fleet Edge connected vehicle platform to provide online insights to drivers and customers, resulting in improved total cost of ownership.
In response to industry challenges and increasing competition, Tata Motors has realigned its core business strategies. The company has shifted its focus from “market share at any cost” to “profitable growth.” This strategic pivot, initiated about 25 months ago, has reportedly benefited both the company and the industry at large.
Tata Motors operates across four product verticals: Heavy Commercial Vehicles, Intermediate and Light Commercial Vehicles, Buses and Vans, and Small Commercial Vehicles. The company is also leveraging four additional verticals: International Business, Spares and Service, Smart City Mobility Service, and Digital business for sales and pre-sales activities.
To build on its profitable growth strategy, Tata Motors is focusing on maintaining product superiority, offering multiple fuel options (including zero tailpipe emission vehicles), implementing analytics-based value selling, and increasing value-added services. Following the demerger, Tata Motors’ commercial vehicles division aims to leverage the advantages of an independent business model for sustainable growth in an increasingly technologically intensive and disruptive era.
