Tata Technologies plots new growth through push in China, acquisitions:
Engineering services and product development IT services provider Tata Technologies is in expansion mode, which is based on two key strategies – enhancing focus on China and acquiring companies in various locations, including China at a later stage.
Tata Technologies has had a presence in China for the last few years through its members working in customer sites and a small shared office, but starting this month, with a brand new office in Shanghai, the focus on the world’s largest automobile market gets more trained. “China is growing exponentially for us and that’s a very exciting space,” Warren Harris, CEO & MD, Tata Technologies, told Autocar Professional, in an exclusive interview. The company’s revenue in China saw a whopping over 8-fold growth to $25 million last year over the previous year.
Lightweighting capabilities give new strength
Tata Technologies is working with at least 5 Chinese OEMs. What is helping the company is its capabilities in technologies such as lightweighting that are highly valued by vehicle OEMs, and more so by electric vehicle (EV) makers.
China, the world’s largest EV market, has also devised policies to promote the electric vehicle industry. Harris ‘sees’ an inflection point in the global electric vehicle industry. “We anticipate in the next 3-5 years that the less than one percent market share EVs enjoy will, in some of the mature markets, get up to 3 or 5 percent,” says Harris. And since industry players have to prepare in advance to tap the opportunities that could come in 3-5 years, Tata Technologies is among the “beneficiaries of many of the decisions that are being taken now”. Banking on the growth opportunities, Tata Technologies has set its sights on crossing the $100 million mark in China in 5 years from now. That would be the equivalent of the company’s operations in US and Europe. “I would be disappointed if China is not the same size as our US and European organisations in 5 years’ time,” says Harris.
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