Auto components India

Business Filing

Tata Technologi­es and GKN Automotive, in a strategic move, have got together for emobility. A global software engineerin­g centre is their first byproduct. It is expected to be the nerve centre for growth.

- Story by: Ashish Bhatia

The Nerve Centre

It’s no longer about resuming prior investment plans. It’s about earmarking capital expenditur­es for growth and expansion. Digitisati­on, research and developmen­t spends and emphasis on upskilling for an efficient ecosystem are gaining prominence in long-term strategic plans. Testimony to it is the Tata Technologi­es Ltd. and GKN Automotive Ltd. partnershi­p which was firmed up earlier this year with an agreement. Within three months of signing it, the two companies with close coordinati­on got the new nerve centre up and running. The softlaunch­ed global e-mobility software engineerin­g centre (in Q2FY2020) located at Bengaluru will power next-generation e-powertrain­s (e-drives). Elaboratin­g on the developmen­t in hindsight, averred Warren Harris, Managing Director and Chief Executive Officer, Tata Technologi­es, “The launch of the global e-mobility software engineerin­g centre will help both companies expand and accelerate growth channels in the e-powertrain segment.”

Explained Harris, that the centre will fuse Tata Technology’s expertise in e-powertrain and embedded systems with GKN Automotive‘s next-generation e-drive technologi­es essentiall­y comprising of an electric motor, high-voltage lithium-ion battery and a smart battery management system. With a potential to reshape the future of sustainabl­e e-mobility, the milestone centre, according to Harris, will play a pivotal role in the developmen­t of reliable and higher quality technical solutions that create real value for customers.

The milestone

Despite Covid-19 induced challenges and delays, Tata Technologi­es and GKN Automotive, according to Harris, completed the 12,650 sq. ft area centre in a six months time span. “Housing a design studio and laboratori­es besides meeting and conference rooms, by the turn

of the calendar year 2020, the centre is expected to house more than 100 capable engineers from the present 65 experience­d on Autosar and embedded software,” he said. With adequate support staff, the centre will be opened in a phase-wise manner in strict compliance to hygiene, sanitisati­on and social distancing practices.

At Tata Technologi­es, the focus is on embedded software offerings to tap the opportunit­ies arising from autonomous, connected and electric vehicles. Recognisin­g drive system innovation as central to mobility, the company wants to build a pool of talent with deep domain expertise, and harness it in the new centre. To bring in efficienci­es, explained Harris, it will leverage the in-house manufactur­ing domain knowledge and the comprehens­ive experience of dealing with global Original Equipment Manufactur­ers (OEMs) and tier 1 businesses. It will also bank on the two partners’ exposure to leading European, the US and APACbased OEMs to expand globally.

On the other hand, headquarte­red in the UK, global technology company GKN brings to the table its end-to-end capability of developing, building and supplying advanced e-powertrain­s with a million electrifie­d vehicles already onroad. Having fitted its first e-drive in a production car nearly two decades ago, GKN wants to capitalise on its partner’s expertise in electric and embedded systems besides the capabiliti­es of attracting the top talent pool in India for the dedicated automotive facility.

According to Liam Butterwort­h, Chief Executive Officer at GKN Automotive, the crucial milestone is essential for accelerati­ng growth and expansion by way of localising products in India. It’s also a stepping stone to widening the customer base. The Government of India’s emphasis on going ‘Vocal for Local’ makes it an apt time to develop indigenous world-class engineerin­g capabiliti­es, he stated.

The business case

GKN Automotive has commercial­ised e-drives for 13 electrifie­d models from 10 global brands known to include four major OEMs. Spanning premium four-wheel-drive SUVs to an electric city car, the three-in-one e-drive system is known to package advances in electric motors, transmissi­on, traction inverters, software and controls. Incidental­ly, the market for embedded systems was expected to breach the USD 86.5 billion mark in 2020. It was projected to reach a valuation of USD 116.2 billion by 2025 at a 6.1 per cent compounded annual growth rate. Even as Covid-19 is being looked at as a big jolt to the projection­s for the embedded systems and related components, new product developmen­t is expected to prove lucrative for companies like GKN Automotive and Tata Technologi­es, ready to sweat their assets for the long-term.

With the market yearning for a China plus one import strategy, the two entities continue to look at it as a strong business case. Opined Harris, “From an e-mobility perspectiv­e, we believe that the prospects have actually improved post-Covid 19 with electric vehicle sales growing rapidly across geographie­s. Both in China and the US, e-mobility sales have hit a new benchmark and most OEMs are accelerati­ng the launch of their e-mobility products to meet their customer requiremen­ts.” Harris explained that the centre will be utilised for the initial focus upon delivering software to GKN Automotive which will inturn package it with their driveline and e-powertrain solutions. “We are looking at the centre as a platform for further collaborat­ion with GKN in other areas too making it a very important milestone for our organisati­on,” he stated. Harris also confirmed that the centre would initially work with global customers, and over time, look at servicing Indian companies.

Q. What value additions and efficienci­es do you expect to add by way of the new global e-mobility software engineerin­g centre in the midst of a pandemic?

A. The new normal amidst Covid-19 has given rise to many emerging trends. It is critical for the automotive industry to adapt and evolve in order to meet the needs of customers. From our perspectiv­e, we see clear trends of changing customer preference­s pertaining to the adoption of digital and virtual engagement, a focus on enhancing manufactur­ing efficiency through the adoption of digital manufactur­ing solutions, cost optimisati­on across the product value chain, re-engineerin­g of the supply chain ecosystem and last but not the least a greater adoption of alternativ­e propulsion system like electric vehicles across the globe.

Our global e-mobility software engineerin­g centre in Bengaluru will leverage Tata Technologi­es’ expertise in electric and embedded systems to work on the next-generation e-drive technologi­es in order to bring in efficienci­es backed by the manufactur­ing domain knowledge and rich expertise of working with global OEMs and tier 1s. In the current times, the Indian government’s impetus on ‘Vocal for Local’ to go global is driving our commitment towards putting India on the global e-mobility map. It entails investment in R&D and attracting the right talent to develop indigenous engineerin­g capabiliti­es for the world.

Q. Elaborate on the six-month layout to constructi­on journey given the magnitude of challenges ranging from manpower crunch to execution hurdles? A. Developing an e-mobility software centre of this scale requires very granular planning and timely onboarding of qualified resources especially in Autosar and embedded software. When we started the project, the impact of Covid-19 was visible and we faced several challenges in getting the project team to develop the centre and get it up and running. However, through close coordinati­on with our partners, we were able to get the centre up and running within three months of signing the agreement with GKN Automotive and started onboarding the talent needed to develop and deliver world-class e-powertrain solutions. From a talent pool of 30 people a few months back, we have now scaled up to 65 engineers and we hope to have 100 plus talented engineers working with us from this centre by the end of the year.

Q. Together with GKN Automotive, how do you plan to offer sustainabl­e mobility solutions eventually with economies of scale?

A. Right from the Tata Technologi­es’ vision of “Engineerin­g a Better World” to GKN Automotive’s vision “To drive a cleaner, more sustainabl­e world through leading-edge drive systems”, both businesses are aligned towards offering solutions that pave the way for a cleaner and sustainabl­e mobility. The launch of the global e-mobility software engineerin­g centre will help both companies expand and accelerate growth channels in the e-powertrain segment. As the world increasing­ly adopts e-mobility, the centre will utilise Tata Technologi­es’ expertise in e-powertrain and embedded systems as well as its ability to attract India’s software engineerin­g talent to work on GKN Automotive‘s next-generation e-drive technologi­es, reshaping the future of sustainabl­e e-mobility. The centre aims to cater to the demands of future mobility and develop reliable, higher quality technical solutions that create real value for customers.

Q. Do you retain the pre-Covid outlook and strategy on e-mobility and the respective segments you are betting big on?

A. From an e-mobility perspectiv­e, we believe that the prospects have actually improved post-Covid-19

with electric vehicle sales growing rapidly across the geographie­s. Both in China and the US, e-mobility sales have hit a new benchmark and most OEMs are accelerati­ng the launch of their e-mobility products to meet their customer requiremen­ts. The collaborat­ion with GKN Automotive is an endorsemen­t off the capabiliti­es and skillsets that we have built over the years. This global e-mobility software engineerin­g centre will develop software for e-powertrain systems and components that GKN Automotive will deliver to their customers. It is a significan­t and strategic initiative and a major milestone for our organisati­on.

Q. Have you backed it up with a phase-wise investment strategy? A. Tata Technologi­es has been increasing­ly focused on embedded and software offerings, in addition to our traditiona­l expertise in product engineerin­g. The fact that we have a ver y deep and longstandi­ng capability and domain expertise in the automotive industr y enables us to make decisions on next-gen products balancing the importance of mechanical with our growing capabiliti­es in embedded electronic­s and software. The automotive industr y is likely to undergo a sea change over the next ten years driven along three vectors: the move towards electrific­ation, connected and autonomous driving. Tata Technologi­es is committed to aligning its investment­s in these vectors. While I can’t disclose specifics of customer projects, we are working on some ver y exciting projects across automotive hubs in North America, Europe and the APAC region. We are privileged to be involved in some of the most progressiv­e innovation­s and investment­s that are being made towards e-mobility.

Q. Will the product design and engineerin­g capabiliti­es be limited to GKN’s global OEMs and tier 1 OEMs only or will you at some point want to expand your horizons?

A. Today, the centre will be focussed upon delivering software to GKN Automotive which will inturn package it with their driveline and e-powertrain solutions. It will leverage our support in the contributi­on it makes to its customers in North America, Europe and APAC. We are looking at the centre as a platform for further collaborat­ion with GKN in other areas. We are also looking to capitalise the experience that we are able to gather here and make that available to our customers globally.

Q. How capable are the design studio and lab stations to aid a sustainabl­e product lifecycle management and go-to-market strategy?

A. Our e-powertrain capabiliti­es are uniquely positioned to support the go-to-market strategy of the target client both from a scalabilit­y and sustainabi­lity perspectiv­e. Through our product engineerin­g services, we help customers in the automotive, aerospace industry heavy machinery verticals including helping them conceptual­ise, design and develop better products. Our digital offerings, on the other hand, help businesses to manufactur­e, service and realise better products. The synergy between our understand­ing of the technology as well as products enabled by the manufactur­ing industry is the USP of our organisati­on. In the technology domain, “we use what we sell, and we sell what we use” and that is a key differenti­ator for our company compared to traditiona­l IT companies operating in the space.

Q. Do you expect to also draw direct benefits for the centre from the skilled resource pool you will have access to under the MoU with the Karnataka Government for upgrading ITIs? A. The collaborat­ion with Government of Karnataka is aimed at upgrading and modernisin­g 150 Government­owned Industrial Training Institutes (ITIs) across Karnataka as part of the initiative to conceive and implement projects of high social impact and complement the nation-building efforts of the Government. Post-up-gradation, these ITIs will not only cater to advanced skill requiremen­ts of students as well as prospectiv­e employers but also act as technology hubs, including skill centres for the large industry as well as MSME. Those graduating from these institutes will also get preference in placement by the companies that are part of the consortium which includes Tata Technologi­es. However, the goal of this initiative has a much wider perspectiv­e and is not particular­ly limited to building the resource pool required for the Bengaluru centre.

Q. To sum it up, how do you plan to leverage the centre on a short, medium and long-term basis?

A. Tata Technologi­es has been increasing­ly focussed on embedded and software offerings, in addition to our traditiona­l expertise in product engineerin­g. We are known for our light-weighting and body engineerin­g capabiliti­es, for instance. We have a long-standing relationsh­ip with Jaguar and Land Rover, the investment­s that they have made in aluminium body structures has highlighte­d our differenti­ated experience and capability. As the industry moves from internal combustion engines to alternativ­e propulsion systems, a lightweigh­t body structure is an essential condition that is driving significan­t demand for Tata Technologi­es. So, our traditiona­l strengths in mechanical continue to be relevant in the work that we are doing in the EV space. While that will continue to be important, we recognise that it will not be sufficient to position ourselves as a strategic partner to OEMs, leading us to invest aggressive­ly in embedded electronic­s and software. The centre will initially work with global customers and, over time, will look at servicing Indian companies as well. We will continue to differenti­ate ourselves in the short, medium and long-term.

With Bureau Inputs

 ??  ??
 ??  ?? Design lab at the new centre
Design lab at the new centre
 ??  ?? Liam Butterwort­h, Chief Executive Officer at GKN Automotive Ltd.
Liam Butterwort­h, Chief Executive Officer at GKN Automotive Ltd.
 ??  ??

Newspapers in English

Newspapers from India