Key highlights
- Tata Motors plans to increase exports to the UK and Europe by FY28
- New EVs are expected to play an important role in the expansion
- The India-UK trade agreement could make exports more attractive
Tata Motors is looking beyond India for its next phase of growth. The company is working on a bigger export push in the UK and European markets, with the strategy expected to gather pace by FY28.
The move comes at an interesting time. Tata Motors already has a strong presence in South Africa, while its wider group has deep links with the UK through Jaguar Land Rover (JLR). The company now appears keen to use its Indian manufacturing base to reach more overseas customers.
UK could become an important market
The India-UK free trade agreement has made exporting cars from India to Britain more attractive. Under the agreement, qualifying Indian-made vehicles can get preferential access to the UK market through a tariff-rate quota, with duties eventually moving towards lower levels. That could give Tata Motors an opportunity to test more of its products in the UK without immediately committing to local manufacturing.
EVs could lead the charge
Tata Motors already has a growing range of electric cars in India, including models based on its newer EV architectures.
The company’s focus on localisation could also help make exports more competitive. Tata’s battery ecosystem is expanding as well, with the Tata group developing battery-cell manufacturing capacity in both India and the UK through Agratas. This could eventually give Tata Motors greater control over the EV supply chain and help reduce its dependence on imported components.
However, exporting cars to Europe is not as simple as loading them onto a ship. European safety, emissions and technology requirements are stricter, and Tata will need to ensure that its India-built products meet those standards.
The company already has access to considerable global automotive expertise through JLR, while its Indian operations provide a cost-competitive manufacturing base.
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