Rerouting is adding about 10 odd days to the portfolio, and for specific lanes, the thick products, we are finding ways to navigate it

With continuous efforts towards the project’s financial closing, Tata Motors has formally started building its gigafactory in Somerset, UK. Tata Motors Group Chief Financial Officer P. B. Balaji recognised a controllable impact of the Red Sea situation on the company’s operations during the post-earnings briefing. In the December quarter, Tata Motors recorded a noteworthy 133.2 per cent increase in net profit at Rs 7,100 crore, with consolidated revenue jumping by 25 per cent year over year to Rs 1,10,600 crore.

When asked about the status, Balaji replied, according to media reports “The site has been procured, and we have already started the land-leveling work in that space.” In July of last year, Tata Motors had earlier declared that it would be establishing a global battery cell gigafactory in the UK, investing more than 4 billion pounds, to assist the automotive industry’s shift to electric vehicles.

When it comes to carrying out the plans on the ground there, we are pretty well along. As a result, the project’s financial closure is also happening right now, Balaji confirmed. Balaji noted that although there has been some impact from the Red Sea issue, the project’s execution in the UK is going well.

In his discussion of EV sales, Balaji pointed out a consistent rise in volume while highlighting the fact that there is no cannibalisation occurring between the EV and CNG markets. He sees significant growth in the CNG and EV markets, with the corporation aiming for 25–30 per cent EV sales in the 2025 and 2026 fiscal years. Balaji promised that steps are being taken to mitigate the effects of the Red Sea issue, and that while the company works through the difficulties, rerouting will add about 10 days to the portfolio, particularly for thick products.