Global engineering and product development company Tata Technologies experiencing a slowdown electric vehicle (VE) in the United States and Europe, according to Warren Managing Director and CEO Kevin Harris.

However, the company expects an improvement in the second half of the financial year.

Harris attributes challenges to electric vehicle demand in the United States primarily to the political climate driven by uncertainty surrounding the election.

Political candidates’ contrasting positions on electric vehicle incentives have sparked hesitation among original equipment manufacturers (OEMs), many of whom are awaiting policy clarification before committing to significant investments in electric vehicles.

In Europe, Chinese competition has increased pressure on local markets. Harris highlighted the impact of Chinese electric vehicle imports, which have prompted some European OEMs to pause their projects as they look for ways to counterbalance the influx of Chinese-made electric vehicles.

This competitive pressure

has spurred technical discussions between the European Union and China on possible alternatives to tariffs on Chinese electric vehicles, although considerable regulatory differences remain.

Harris remains optimistic about the long-term growth trajectory of the electric vehicle market, with projections that one in five cars will be electrified in the United States and the European Union by 2030.

China, which is expected to see more than 50% of its vehicles electrified by this date, highlights the rapid shift to electric vehicles globally.

“The long-term direction of the market is relatively defined,” he said.

Tata Tech reported a revenue of $154.6 million for the July-September 2024 quarterwith earnings before interest, taxes, depreciation and amortization (EBITDA) margins stable at 18.2% and profit after tax at ₹157 crore.

The company, which has a market capitalization of ₹41,011 crore, has seen its shares fall 23% over the last year.