Future of mobility: Tata Motors to leverage group strength for positioning

We, as a company, are going to move towards technology but we are also going to move towards new business models: CEO Guenter Butschek

As the auto industry goes through disruptions brought by new technologies, Tata Motors is banking on group strength, particularly on software major TCS, in its bid to position itself as a mobility solutions provider, according to its MD and CEO Guenter Butschek.

With the current discussions in auto industry revolving around autonomous, connected, electric and sharing (ACES), he said Tata Motors also needs to reinvent itself to a certain extent, moving towards new technology and business models.

In an interview with PTI, Butschek said the tender for supplying over 350 electric buses to 11 cities under the FAME scheme provided a big opportunity to the company to leverage on group competencies for "an incredibly powerful play in the new space".

"We, as a company, are going to move towards technology but we are also going to move towards new business models," he said, adding all mega trends in the industry suggested that as a company Tata Motors need to "reinvent ourselves to a certain extent".

Currently, he said the auto industry discussion is determined by ACES -- autonomous, connected, electric and sharing.

"If you look into the four letters, it is all software," Butschek said, adding that within the software package, there is a need for dedicated specialities.

"This is where the group competency kicks in," he said, reiterating Tata group Chairman N Chandrasekaran's 'One Tata' approach.

Stressing the need for such an approach, he added, "not just because we are one of the largest companies within the Tata group but because of the fact that we are undergoing such disruptions that we require competencies, which we do not have in our portfolio to the full extent today.

"But, we have highly competent other group companies, my references in particular go in towards TCS".

With a strong group relationship and connecting competencies Butschek said, "technology might play in our favour and we can become much more powerful and we could even get in the position to lead this movement".

When asked if Tata Motors has started conversation with TCS on the new front, he said replied in the affirmative saying Tata Motors has a long lasting strategic relationship with TCS.

"These conversations are almost natural because we are no foreigners to each other. We work together on all kinds of different platforms. And as we work together on the present you naturally talk about future," he added.

These talks, he said are "more about future in the context of new technologies and certainly with some additional push by the clear call to leverage the competences of the group".

Butschek said the tender for supplying electric buses was an ideal platform to leverage on the group's strength in terms of providing the actual vehicle, IT-related and maintenance services.

"All of a sudden you realise that there is a set of strength, a set of competency within the Tata Group, which you can just leverage, which gives us an incredibly powerful play in the new space," he added.

Tata Motors will bid for all the 11 cities, on the back of its new 12-metre, 'state-of-the-art indigenous' electric bus, he added.