Tata Technologies’ revenue rose 2 percent to 1.30 billion rupees in the second quarter, while expenses grew about 1 percent.
Amid the international demand slump for electric vehicles, Tata Technologies has yet again witnessed a profit loss, the third consecutive in a row. According to reports, the company’s consolidated profit after tax dropped 2 percent to 1.57 billion rupees in the July-September quarter.
Tata Technologies, a subsidiary of Tata Motors, offers technology and engineering solutions to aerospace, defence, automobile, and other heavy industry manufacturers. Interestingly, Tata Motors, India’s leading EV maker and seller, is also a potential customer of Tata Technologies. However, this couldn’t save the company from witnessing back-to-back losses.
Recently, Goldman Sachs also mentioned that scarcity of charging infrastructures, election uncertainty, and capital costs are the primary drivers of the slower growth rate of EVs globally. Kelley Blue Book, a vehicle valuation and automotive research company, stated in its report that in Q1 2024, around 2 lakh US people purchased EVs. However, when counting the percentage of overall cars sold, EVs grabbed a 7.3 percent share, down from quarter four 2023.
In Europe, new car sales also decreased in March this year owing to decreasing EV registrations and the Easter holidays. In the entire European Union (EU), EV sales plummeted by 11.3 percent to 134,397 units in the same time period. The slow growth is due to the 29 percent EV sales slump in Germany, considered to be the biggest market in Europe.
According to experts, the use of EVs has escalated exponentially in the past few years, accounting for 2 percent of India’s 4.2 million yearly car sales. But now, sales are plummeting due to high prices and a lack of ample charging stations. To avoid heavy losses in the EV business, some international car manufacturers have even reduced EV production and focused on unleashing more hybrid models.
