Tata Technologies Hopeful Of New Investments In FY26 Amid Trump's Policy Decisions, Says CEO Warren Harris

A bounce back of the auto sector is expected with increased investment and renewed customer interest following Donald Trump's return as the US president, according to Warren Harris, chief executive officer of Tata Technologies Ltd.

Speaking to NDTV Profit, Harris highlighted that 2024 was filled with challenges for the automotive sector, primarily due to policy uncertainty, but things could change with Trump's return.

"This year, because of the policy uncertainty in and around the automotive industry, growth has been a challenge for the entire industry," the managing director said.

However, now that the US administration is confirmed, customers are expected to return and make investments in Tata Technologies, according to Harris.

Tata Technologies specialises in automotive engineering, offering services like EV engineering, product benchmarking, right weighting, simulation, validation, and embedded systems.

"But we think now that the administration change is confirmed in the United States, and we are getting wind of the fact that the regulator in Europe is going to provide clarity in the short term, our customers are going to return to investment in new products," he said. "That will provide tailwinds as we prepare for the new fiscal year."

Explaining the situation in 2024, Harris said that the "polarised policy positions" of the 1.6% quarter-on-quarter increase in revenue for the third quarter as Democrats and Republicans did not provide any clarity to customers up until November, which prevented them from making any "major commitments in new products.".

Now that there is clarity as far as the US is concerned, there will be a basis on which the OEMs and supply chains will invest, he said.

"What it will probably mean is that there will be a commitment to a much more balanced portfolio of propulsion systems. But for Tata Technologies, that plays into our strengths because not only do we have very strong capabilities in EV, but we can also provide support for plug-in hybrid systems and also continue to work with our customers to help them optimise and then prove legacy internal combustion engines," Harris said.

"So for us, as far as propulsion is concerned, we're relatively agnostic. But what we're excited about is that there is now a basis on which our customers can make decisions," he added.

Tata Technologies reported a 1.6% quarter-on-quarter increase in revenue for Q3 FY25 at Rs 1,317.4 crore, compared to Rs 1,296.5 crore in the previous quarter. The net profit of the company rose by 7.1% to Rs 168.6 crore, up from Rs 157.4 crore.Explaining the situation in 2024, Harris said that the "polarised policy positions" of the 1.6% quarter-on-quarter increase in revenue for the third quarter as Democrats and Republicans did not provide any clarity to customers up until November, which prevented them from making any "major commitments in new products.".

Now that there is clarity as far as the US is concerned, there will be a basis on which the OEMs and supply chains will invest, he said.

"What it will probably mean is that there will be a commitment to a much more balanced portfolio of propulsion systems. But for Tata Technologies, that plays into our strengths because not only do we have very strong capabilities in EV, but we can also provide support for plug-in hybrid systems and also continue to work with our customers to help them optimise and then prove legacy internal combustion engines," Harris said.

"So for us, as far as propulsion is concerned, we're relatively agnostic. But what we're excited about is that there is now a basis on which our customers can make decisions," he added.

Tata Technologies reported a 1.6% quarter-on-quarter increase in revenue for Q3 FY25 at Rs 1,317.4 crore, compared to Rs 1,296.5 crore in the previous quarter. The net profit of the company rose by 7.1% to Rs 168.6 crore, up from Rs 157.4 crore.