The green fuel space is what Tata Motors is betting on as it steps into a brand new fiscal. The automaker is not only committed to launching 10 different products by FY25 but also looking to increase the share of CNG and electric vehicles.
Speaking to the media after the announcement of the Q4 results, PB Balaji, Group Chief Financial Officer, Tata Motors highlighted that the auto major is keen on its “intention to continue investment in alternate fuel. As showcased during the Auto Expo, the hydrogen fuel-cell vehicle (FCV) prototype in collaboration with IOCL is ready and has already secured an order for the first batch. We also plan to continue our partnership with Cummins on hydrogen powertrain.”
Going forward, Tata Motors is also “expecting to increase penetration of both CNG and EV offerings. We are very excited with the green fuel space,” added Balaj. He is “confident on growth with cash flow generation to achieve our stated goals. We are optimistic on demand despite near-term uncertainties and moderate inflation.” He clarified that Tata Motors is not facing chip supply challenges in the domestic market and believes that the “worst of semiconductor issue is behind us for JLR too.”
In fact, the other factor that is boosting the automaker’s confidence across segments is the fact that its automotive debt is at a “15-year low” and is keen on enhancing its volume mix with plans “to launch 10 different products by FY2025,” pointed out. out Balaji.
Tata Motors is confident that its margins going forward will get a fillip and strong volumes coupled with product mix leaning heavily on the green quotient will help drive up their outlook. The target to achieve zero debt by FY2025 is expected to add to its valuation further and enhance the free cash flow.