Tata Technologies CEO and MD, Warren Harris, said that investment decisions in the United States experienced delays as businesses awaited clarity on tariff policies under President Donald Trump's administration.
Speaking to PTI, the executive said that the firm remained bullish in its medium to long term outlook for North America. "The lack of clarity on things like tariffs are not helpful. They're not helpful to our customers, and because they're not helpful to our customers, investment decisions are likely to be delayed," he explained.
Notably, Tata Technologies has a significant presence in the US. Harris added that the firm remained optimistic that more clarity will be provided in terms of tariff policy in the next month or two.
Companies Seek Clarity On Tariff Policy
Elaborating on the impact of the American government's fresh tariffs on several countries, the global product engineering and digital services firm's CEO said that getting clarity on the matter remains the top priority.
"What we are clear about is that the administration is only less than two months old, and so I think in the next month or two, we are going to see clarity in terms of policy. Whether we like tariffs or not, the most important thing is clarity, and once our customers have clarity, then they can make the appropriate adjustments," he stated.
When asked if the company was prepared for unexpected shifts in policy, Harris replied, "Of course, we're always monitoring the market conditions, and the last 12 months have taught us that we have to be agile and we have to be flexible," he stated.
On the issue of tariffs, Harris clarified that Tata Technologies did not advocate for protectionist trade policies. "We're a global company, and so anything that supports free trade is something that we are very much aligned to," he remarked.
However, he acknowledged that businesses must operate in varying economic conditions across different regions. "We have learnt to deal with different market conditions in different parts of the world. Europe is very different than North America. What's happening in China is very different than India," he said.
Adapting to market changes, according to Harris, was a key focus for Tata Technologies. "We have committed ourselves to being agile and flexible and reacting to the circumstances in which we operate," he stated.
Automakers Should Focus On Software: Tata Tech CEO
Discussing industry trends, he pointed out that automotive companies needed to invest not only in electric vehicles but also in software development. "Software is such an important part of what will define the competitive position of our industries that we are likely to see an exponential movement of ER&D (engineering research and development) dollars into that space," he observed.
To capitalise on emerging opportunities, Tata Technologies has already restructured its business. "One of the reasons that we are separating out embedded and software is because we believe there is such a bow wave of opportunity that will define our industry in the next five to 10 years," Harris explained.
As part of its strategy to better serve its clients, the company recently introduced leadership changes to strengthen its focus on the automotive, industrial heavy machinery, and aerospace sectors.