Green fuel is a key growth strategy for Tata Motors

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Updated On: 19-May-2023 05:53 AM

Tata Motors is making an investment in green fuel as it enters a new fiscal year. Tata Motors has pledged to launch ten new products by FY25, as well as increase its share of CNG and electric vehicles.

In a press conference following the release of the Q4 results, P B Balaji, Group Chief Financial Officer of Tata Motors, stated that the automaker is committed to continuing its investment in alternative fuels. He highlighted that Tata Motors is not experiencing chip supply issues in the local market.

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The hydrogen fuel-cell vehicle (FCV) prototype, which was displayed at the Auto Expo, is complete, and an order for the first batch has already been secured. The company also intends to continue collaboration with Cummins on hydrogen powertrains.

Tata Motors also expects increased penetration of both CNG and EV offerings in the future. The firm is confident in its ability to achieve the above-stated goals through growth and cash flow generation. Despite near-term concerns and mild inflation, Tata Motors remain positive about demand.

In fact, another factor supporting the automaker's confidence across segments is that its automotive debt is at a 15-year low and the company is keen on increasing its volume mix with plans to launch 10 different products by FY2025 as per the senior officials.

Tata Motors is sure that its margins will improve in the future, and that robust volumes combined with a product mix that leans heavily on the green factor would help boost their outlook. The aim of zero debt by FY2025 is projected to boost its valuation and improve free cash flow.