Tata Technologies has emerged as a leading digital services company for engineering and product development worldwide. It is a fragment of Tata Group and a subsidiary of Tata Motors. It emphasizes to fulfill the mission to facilitate the world to advance progressively by assisting manufacturing clients in the automotive sector, aerospace verticals, and industrial machinery to apprehend superior products and drive unmatchable efficiencies in the businesses. Tata Technologies aims to develop products that are excellent for the end customer, thereby keeping the broader picture in mind.
Over the last few years, Tata Technologies has proved its mettle as the prominent and reliable end-to-end developer of EVs (electronic vehicles), specifically for start-ups and original equipment manufacturers or OEMs worldwide. The company was primarily an expert in the automotive segment ever since its inception. Yet, it reinvented the operations to be prepared for the mobility transformation era that was evolving globally.
The Significant Growth of Tata Technologies
Tata Technologies' debut in the EV space began in 2015 when it got a contract from Next EV, now renamed NIO, which is a start-up in China. Tata Technologies had to work on developing a full-fledged EV from scratch. Within 32 months, the company managed to deliver a complete seven-seater and battery-run electronic vehicle named ES8 with an aluminum body. Though Tata Technologies offered solutions to Jaguar Land Rover and Tata Motors, the engagement was more towards non-Tata customers.
Tata Technologies’ revenue for fiscal 2021 was around $321.5 million. It is one of the leading investable companies in the unlisted shares segment with considerable wealth creation opportunities. Due to India's sizable evolution in the electronic vehicle sector, it is likely to experience tailwinds in the near future, making it a viable option for enthusiastic investors. If you want to put your money in Tata Technologies’ unlisted stocks, Investopia will be your ultimate investment avenue. It is an online platform enabling the zealous investors to enter in the unlisted space, thereby making their journey convenient and effortless. Likewise, it provides financial insights of unlisted companies to aid investors in making a prudent decision.
Rise of EV Trend in India
A few years back, the trend of the electronic vehicle was the next big thing in the automotive market. Countries like Europe, the U.K., and the U.S. were faster to adopt this new disruption of innovative and efficient mobility than India. Undoubtedly, electronic vehicles effectively facilitate the need for sustainable, eco-friendly, and clean mobility. The requirement for a viable solution to reduce pollution levels arose in India, thus leading to the wave of electronic vehicles.
Despite the pandemic-induced economy in 2020, the EV industry chronicled a 20% hike compared to 2019. The total domestic sales for EVs went up to 156,000 units. On the other hand, the vehicles powered by IC (internal combustion) witnessed a decline of 34% in sales in the same duration.
The Present Scenario of Tata Technologies in EV Space
Tata Technologies, the extension of Tata Group's product development and engineering services, is expecting a growth of up to 35% in its business operation in FY (financial year) 2021-22. The credit for this mainly goes to Tata Technologies' recovery-led investment in the automotive industry and companies with long-term planning for EVs across the globe.
Notably, the sales revenue of Tata Technologies stands at $321.5 million for FY 2021. Moreover, it expects to record revenue of around a whopping $500 million this fiscal year due to the stellar growth of electric mobility. Emphasizing the financial soundness of Tata Technologies, its net worth has been accelerated at a CAGR of 23.02% since 2018.
Notable Deals by Tata Technologies in 2021
- Launched an Automotive Open System Architecture (AUTOSAR) center for development in India specifically for GKN, a testament to the reputation that Tata Technologies is thriving in the segment of e-mobility an embedded electronics.
- Tata Technologies associated with a North American OEM for developing an SUV exclusively for the Chinese market.
- Bagged a multi-year PLM-empowered, digital thread assignation with a tier 1 automotive supplier.
- Introduced the next-generation futuristic ERP solution for a North American BEV (Battery Electric Vehicle) company.
Tata Technologies’ future seems to be pretty bright due to substantial inclination of people towards adoption of electronic vehicles in India. The company has pocketed a striking deal with Government of Karnataka for modernizing 150 ITIs (industrial training institutes). The accelerated evolution of electric mobility in India and other countries has proven to be the facilitator of the breakthrough growth that Tata Technology has witnessed.
Thus, it would bring an array of best investment opportunities in the unlisted space. However, it is vital to assess the financial soundness and reliability of the company before putting money into it. Indeed, Tata Technologies has excellent growth prospects in the EV space; investing wisely in its unlisted stocks can reap fruitful returns for you.
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