Tata Motors advances Gigafactory construction amidst Red Sea crisis

The company’s robust Q3 performance echoes its commitment to electric mobility.

In a post-earnings conference call, Tata Motors Group CFO, PB Balaji, confirmed the commencement of work on the gigafactory in the UK. Despite acknowledging a manageable impact from the Red Sea crisis, Balaji assured stakeholders that the situation is currently under control.

Gigafactory’s progress

Earlier on the same day, Tata Motors reported a 133.2 per cent growth in net profit, reaching Rs 7,100 crore in the December quarter. The consolidated revenue also surged by 25 per cent YoY, hitting Rs 1,10,600 crore. Balaji provided insights into the gigafactory’s progress, stating that the site has been secured and land-levelling work is already underway.

Tata Motors had announced plans in July last year to establish a global battery cell gigafactory in the UK, investing over £4 billion. Balaji expressed confidence in the project’s execution, emphasising that the financial closure is in progress. He highlighted the resilience of the UK execution plan, signalling that “it is all systems green.”

While acknowledging some impact from the Red Sea crisis, Balaji assured that efforts are being made to minimise its effects. Rerouting strategies have been employed, adding approximately 10 days to the portfolio. Addressing electric vehicle (EV) sales, Balaji reported sequential volume increases, emphasising the absence of cannibalization between the EV and CNG segments. He projected 25-30 per cent of sales from EVs in FY25 and FY26, underscoring the company’s commitment to sustainable automotive solutions.