Indian auto chases Europe EV dream

Cos acquire struggling European firms for design, expertise

- Ayaan Kartik

For India's Auto Inc., Europe is the new go-to shopping centre for technology, advanced engineering, talent, and a toehold in the electric future—either through takeovers or push for higher exports, especially of premium electric vehicles (EVs).

While Tata Motors Ltd, TVS Motor Corp, and Bajaj Auto Ltd are snapping up struggling European firms to gain design and engineering expertise, rivals like Maruti Suzuki India Ltd and Ultraviolette Automotive are pushing premium electric models into the continent through existing dealer networks to lay the foundations for future growth.

Yet, the timing is fraught: Europe's auto sales have slowed to a crawl, Chinese EV rivals like BYD are racing ahead, and some Indian forays of the past—like TVS's Norton bet and Ashok Leyland in the UK-have not yielded the best returns.

The latest is TVS Motor's ₹5 million (about 52 crore) acquisition of Italian design and engineering firm Engines Engineering S.p.A. on 25 September to set up a global design hub in Bologna, Italy, and upgrade its premium offerings.