Tata Motors' R&D spend jumps 45% in FY24

Tata Motors increased its spending on research and development (R&D) by 45% year-on-year to ₹29,398 crore for the year ended March 31, 2024. India’s largest electric carmaker’s R&D spending stood at ₹20,265 crore in FY23 and ₹15,339 crore in FY22.

This increased spending on R&D comes as Tata Motors focuses on extending its electric vehicle (EV) product range, developing flex-fuel powertrain, fuel cell EV and Hydrogen ICE with necessary strategic investments for supporting infrastructure. Tata Motors’ product strategy is based on a complete shift towards zero and low-carbon vehicles like EVs, hydrogen vehicles, and flex-fuel vehicles.

Some other areas in which R&D is being carried out include wireless battery management system, wireless charging of high voltage battery, development of vehicle control strategies to improve the EV vehicle efficiency by including the multiple efficiency levers. Tata Motors is also focusing on development of light and heavy commercial trucks on the battery electric vehicle platform with various voltage architecture.

Tata Motors says it is working towards achieving net zero emissions by 2045. “In the CV segment, including pickups, we are focusing on developing and deploying alternative fuel vehicles such as electric and hydrogen-powered vehicles,” the automaker says. “Additionally, we are investing in R&D to enhance the efficiency of Internal Combustion Engines (ICEs) and are exploring innovative solutions to reduce emissions throughout the vehicle lifecycle,” it adds.

Tata Motors says it is investing in R&D to enhance the efficiency of ICE and exploring solutions to reduce emissions throughout the vehicle lifecycle. The company unveiled two R&D facilities aimed at promoting sustainable mobility solutions, including an engine test cell for developing Hydrogen ICEs and infrastructure for storing and dispensing hydrogen fuel for Fuel Cell and H2ICE vehicles.

India is well on track to exceed the 5 million vehicle sales mark in passenger vehicles over the next few years from the 4.1 million volumes clocked last year, says N Chandrasekaran, chairman, Tata Motors.

“Despite being the second largest market in the world, India is well behind China which is 6x our market size. India’s vehicle penetration, at about 30 vehicles per 1,000 population, is well below global norms and is expected to continue to increase,” Chandrasekaran says, adding that Tata Motors is well placed to further strengthen its market position and tap into this growth opportunity.

Tata Motors despatched 73,844 EVs during FY24, registering a growth of 47.5% over FY23. With a mammoth 73% share in the EV market, Tata Motors is the largest player in the Indian EV industry. The carmaker has the widest portfolio of EVs, with products available across body styles and price points. The company says its EV business will focus on driving up penetration through multiple product launches, focus on market development, charging network enhancements and continuing to introduce aspirational product features.

Tata Motors’ India automotive business is now debt-free, and the company is on track to make JLR debt‑free in FY25.