Tata Motors Commits Rs 350 Cr Investment for Transition to Zero-Emission Technology
- ByStartupStory | August 27, 2023
Tata Motors is steadfast in its commitment to transform its facilities into net zero greenhouse gas emission sites by 2045, utilizing various technologies such as electric and hydrogen fuel, as stated by Girish Wagh, its Executive Director. The $37 billion organization, a frontrunner in India’s commercial vehicle sector, will continue to allocate over Rs 2,000 crore annually to its commercial vehicle business.
Wagh elaborated, “As a part of sustainable transition which is an irreversible megatrend, Tata Motors is committed to become net zero in greenhouse gas emissions by 2045. As a part of that, we have to work towards zero-emission vehicle technologies for our entire portfolio as also ensuring that our facilities emit no Carbon Dioxide…we are working on multiple vehicle technologies”
Wagh emphasized the application of battery electric and hydrogen fuel technologies, which can be implemented in both internal combustion engines and fuel cell electric vehicles. Tata Motors is focused on these technologies across its products and has signed an MoU with the government of Jharkhand to establish a manufacturing facility for these technologies. The company’s initial focus will be on hydrogen internal combustion engines.
Tata Cummins Pvt Ltd’s subsidiary, TCPL Green Energy Solutions, has partnered with the Jharkhand government to establish a manufacturing facility for fuel-agnostic powertrain solutions including hydrogen internal combustion engines, battery and fuel cell electric vehicle systems, and fuel delivery systems. Wagh highlighted that Tata Motors’ heavy commercial vehicle manufacturing predominantly takes place in Jharkhand’s Jamshedpur plant, making it a significant hub for zero-emission vehicle penetration.
For the hydrogen facility in Jharkhand, an investment exceeding Rs 350 crore is planned in the first phase to enable the production of hydrogen internal combustion engines. Wagh stressed that Tata Motors is ready to embrace zero emission technology as the ecosystem matures and penetration increases.
Regarding the timeline, Wagh stated that the first engine is anticipated to roll out in the next calendar year. He also highlighted the employment opportunities this transition will create, indicating that for every person employed by the original equipment manufacturer, the supply chain generates around 10 times more employment. Initially, around 350 jobs will be generated in the engine manufacturing plant.
Tata Motors’ consistent annual capex in the commercial vehicle business will continue to exceed Rs 2,000 crore in the next fiscal year. In the first quarter ending June 30, the company reported a consolidated net profit of Rs 3,300.65 crore and consolidated revenue from operations at Rs 1,01,528.49 crore.
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