Tata Motors, part of the esteemed Tata Group, has experienced a significant increase in its technology spending, marking the third consecutive year of double-digit growth. The Mumbai-based automotive giant has been driving the digitization movement within the automobile industry, utilizing emerging technologies such as artificial intelligence/machine learning (AI/ML), cloud computing, and the internet of things (IoT).
Despite the challenges posed by the Covid-19 pandemic, global chip shortages, and the subsequent economic crisis, Tata Motors has managed to thrive by leveraging new technologies. In the fiscal year ending in March 2023, the company reported a staggering 24% increase in annual revenue, totaling Rs 3.5 lakh crore. This growth was accompanied by a 12% rise in technology spending, amounting to Rs 3969.89 crore during the same period.
Tata Motors has recognized the importance of investing in cutting-edge technologies to overcome obstacles and capitalize on emerging opportunities in the market. The company’s reliance on AI/ML, cloud computing, and IoT has been pivotal in supporting its three core business units: commercial vehicles, passenger vehicles, and electric vehicles. By integrating these technologies into its operations, Tata Motors aims to achieve proper back-end synergies and enhance the overall driving experience for its customers.
One notable collaboration that Tata Motors has embarked upon is with Microsoft. Through this partnership, the company is leveraging Microsoft’s connected vehicle technologies, which combine AI/ML and IoT capabilities on the Azure cloud platform. This collaboration aims to create highly personalized, intelligent, and safer driving experiences for Tata Motors’ customers.
Furthermore, Tata Motors’ subsidiary, Jaguar Land Rover (JLR), has joined forces with computing company NVIDIA in a multi-year strategic partnership. This collaboration aims to develop and deliver next-generation automated driving systems, along with AI-enabled services and experiences. Production of these advanced systems is expected to commence in 2025.
To further strengthen its technological capabilities, Tata Motors migrated its entire dealer management system to Oracle Cloud Infrastructure (OCI) in January 2022. This migration has resulted in faster insights and improved productivity, allowing the company to serve over 60,000 users in pre-sales, sales, and after-sales markets across all vehicle segments.
The Covid-19 pandemic has expedited the reliance on digital technologies due to remote working conditions. As a result, Tata Motors has made significant investments in robust IT systems and firewalls to protect against cyber threats. The company is also focusing on staff training and vehicle certifications to mitigate the risks associated with data privacy and vehicle hacking.
Considering its global focus on electric vehicles (EVs), Tata Motors has developed an in-house software for controlling its electric powertrains. This software has played a crucial role in the company’s testing operations, aiding in the development of efficient and sustainable EVs.
Tata Motors aims to reduce greenhouse emissions by 46% in its operations and by 54% per vehicle across its value chain by 2030. Furthermore, the company has set the ambitious target of achieving carbon net-zero goals by 2039.
In June 2023, JLR announced a strategic partnership with Everstream Analytics, a provider of supply chain mapping and risk analytics solutions. Leveraging AI technology, JLR can now monitor its supply chain in real-time, enabling proactive measures to address potential global supply issues.
To accelerate its digital transformation journey and support enterprise risk management, Tata Motors is utilizing AI to monitor its global supply chains. In line with this focus, the company appointed Rajesh Kannan as the President and Chief Digital and Information Officer. Kannan will lead a team of specialists working on AI/ML and other technology-driven initiatives to achieve desired business outcomes in the years ahead.
Tata Motors’ commitment to embracing technology and innovation positions the company as a frontrunner in the automobile industry’s digital transformation. By prioritizing emerging technologies, Tata Motors aims to enhance its offerings, optimize operational efficiency, and provide its customers with state-of-the-art, intelligent vehicles and services.
