Playing a pivotal role in $128 billion Tata Group's vision of moving to net zero carbon emission, Tata AutoComp Systems, the auto parts arm of salt-to-software conglomerate is planning to localise almost every element of electric vehicles to help accelerate the shift towards cleaner vehicles.
Barring battery cells and some magnets that will be managed by the group company, Tata AutoComp will be manufacturing and localising every critical part that goes into an electric vehicle and supporting the Government's 'Make in India' vision and help Tata Motors de-risk itself from the vagaries of global supply chain challenges and high import costs.
For this, Tata AutoComp has lined up an investment of over Rs 2,500 crore in the next few years across businesses and it is one of the biggest beneficiaries under the Government of India's production linked incentive (PLI) scheme. Rs 500 crore out of this kitty will be invested on the new Dual Clutch Transmission plant in Chakan. Autocar Professional had exclusively reported this in its January 15 edition. Almost 50 percent of its total investment will be towards EVs, Autocar Professional learns. The investment will be made through internal accruals and debt, said a senior company executive and there is no plan to raise funds through PE as of now.
Given the high contribution in Tata Motors EV portfolio, Tata AutoComp is well on course for a billion dollars in revenues in the next two years itself helping the group stay the course in its mid-term vision of attaining $3 billion of Group turnover by 2024-25.
Declining to share specific quantum of investment, Arvind Goel, MD of Tata AutoComp told Autocar Professional the company has a "very high investment plan" lined up and almost 50 percent of its investment for the future will be towards Zero Emissions.
This story is from the 1st February 2023 edition of Autocar Professional.
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This story is from the 1st February 2023 edition of Autocar Professional.
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