Tata Technologies' R&D Strategy To Focus On Fewer Clients — Here's Why

Tata Technologies Ltd., a global engineering and product development services firm, is realigning its business strategy to focus on fewer customers, prioritising those with significant Research and Development investments, said Chief Executive Officer and Managing Director Warren Harris.

He highlighted the need to foster deeper, more strategic relationships with top-tier clients.

“Our strategy is to reduce the number of customers we work with, concentrating on organisations that allow us to intersect with their strategic imperatives,” Harris told NDTV Profit in an interaction.

This targeted focus enables Tata Technologies to focus on new product development, enterprise digitisation, and emerging technologies like artificial intelligence, he said.

The company’s focus on high-value clients is pivotal to its long-term strategy, as clients are increasingly investing not only in product development but also in digital transformation and new technologies.

Despite a tapering growth trajectory, Harris remains optimistic about the market, particularly in the electric vehicle segment. Tata Technologies anticipates EV sales to surpass 1.5 crore units this year, up from 1.45 crore units last year.

“Concerns following elections in Europe and the US have eased, providing clarity in policy direction. This is expected to align decision-making with the industry’s transition,” he said.

However, Harris cautioned about potential challenges stemming from shifts in US manufacturing policy under former President Donald Trump, now that he is returning to office. While short-term positivity could bolster domestic manufacturing investments, the long-term impact remains uncertain, he said.

Tata Technologies has also faced challenges with its prominent EV client, VinFast, as the automaker scales back investments in the company to assess market reaction to new launches. Harris said that two EVs developed for VinFast are now being launched globally, but additional projects have slowed.

To counterbalance this, Tata Technologies has successfully diversified its client base. Non-VinFast relationships grew 30% year-on-year in the previous fiscal and are expected to exceed 50% growth this year, the CEO said. This momentum gives the company confidence for the second half of the fiscal and beyond, with growth likely spilling into fiscal 2026.

“Our ability to backfill the VinFast runoff with growth from other accounts demonstrates the strength of our broader business,” Harris said.