Tata Technologies (TATATECH) investor relations material

Market trends and outlook

• Automotive engineering R&D market faced project delays due to geopolitical and strategic factors, but long-term growth in global ER&D spending and outsourcing remains strong, with 8–9% CAGR projected through 2030.

• Manufacturing investment rebounds with new product and propulsion decisions, not sales cycles, leading to step-up recoveries in engineering spend.

• Automotive software and electronics market expected to grow nearly fourfold by 2035, driven by SDVs, ADAS, electrification, and AI integration.

Strategic positioning and differentiation

• Emphasis on system-level ownership, engineering-manufacturing continuity, and large-scale program execution sets the company apart from task-based competitors.

• Shifted to integrated, outcome-driven engagements, enhancing competitive advantage and meeting rising OEM expectations.

• Full vehicle program delivery capability, including turnkey solutions from concept to launch, with over 250 vehicle programs delivered in 30 years.

Resilience and operational performance

• EBITDA margins compressed due to operational challenges, including a cybersecurity event, but long-term partnerships and customer engagement remained robust.

• Diversification advanced with marquee OEMs like BMW and Volkswagen, improving portfolio mix and embedded revenue growth (CAGR +60.7%).

• Non-automotive revenue contribution increased, and services revenue stabilized, targeting sequential growth.