Tata Hitachi believes that to emerge as a global manufacturing hub, India must build local demand to develop Skill, achieve Scale in components, and shift focus from just products to integrated Solutions.
10 Sep 2025 | 4194 Views | By Yukta Mudgal
Tata Hitachi Construction Machinery Company, the four-decade-old joint venture between Tata Motors and Hitachi Construction Machinery of Japan, is sharpening its focus on exports and electrification while underlining the urgent need for India to build “Skill, Scale, and Solutions” if it is to truly emerge as the world’s manufacturing hub.
This is an Autocar Pro Plus article. Subscribe to continue reading.
Tata Hitachi Construction Machinery Company, the four-decade-old joint venture between Tata Motors and Hitachi Construction Machinery of Japan, is sharpening its focus on exports and electrification while underlining the urgent need for India to build “Skill, Scale, and Solutions” if it is to truly emerge as the world’s manufacturing hub.
“If India is to become the ‘factory of the world’, it must overcome three challenges: Skill, Scale, and Solutions,” said BKR Prasad, AVP – Product Development & External Affairs, Tata Hitachi, at Autocar Professional’s Construction Equipment Inner Circle (FutureStarters of Mobility, a CXO Roundtable hosted by ZF Group).
Skill is required at every level — from operators and customers to OEMs, vendors, and channel partners. “The Chinese industry didn’t grow because of exports; it grew because of domestic consumption. That local demand, built scale and attracted talent, thereby bridging the skill gap. India must also create demand locally,” Prasad explained.
The second challenge is Scale. Without large-scale domestic consumption, India’s component ecosystem remains underdeveloped. “High-value hydraulics and precision components don’t exist in India at scale. We are dependent on Japanese, Korean, or European suppliers, and that hurts cost competitiveness,” he noted.
The third priority, Prasad added, is moving from building products to delivering solutions. “Customers today want technology, connected machines, and autonomous operations. Solutions come at a cost, and only economies of scale across the value chain can deliver both cost leadership and value,” he said.
Exports
“Unlike other global players that have used India largely as a manufacturing base for exports, Tata Hitachi has stood out for its longevity and stability,” Prasad emphasized. The joint venture, set up in 1984, has remained resilient. “Hitachi gave us the technology and has been bringing it to us for more than four decades. This joint venture is one of the longest-standing Indo-Japan partnerships — not only in the CE space but across industry segments,” he said.
“Exports have never been a major business driver for us. Only in the last four or five years have we started looking outside India. Today, around 5% of our top line comes from exports. We always believed in and worked towards indigenisation and strengthening the local ecosystem, much before Aatmanirbhar Bharat became a buzzword,” he added.
Electrification and Innovation
Tata Hitachi, supported by its Japanese parent, is investing in several alternative fuel solutions, including electrification. While Hitachi already has battery-powered and tethered excavators in its global line-up, the JV has developed and displayed tethered excavators and battery-powered mini-excavators in India.
“We are lining up more such machines for the upcoming Excon. There is a lot of work happening, but it is not yet clear which technology direction will finally sustain. Alternatives to ICE engines are many — from biodiesel to CNG to battery-electric. As an OEM, we have demonstrated our capabilities with all possible solutions,” Prasad said.
He added that all developmental initiatives are centered around Hitachi’s philosophy CIF – Customer Interest First. Regulatory changes such as emission norms, he stressed, are non-negotiable. “What drives the customer is quality, reliability, and durability. Cost competitiveness is still a challenge because we lack scale, but once demand is created, the whole value chain will follow,” he observed.
Tata Hitachi holds a 23% share of India’s excavator market, with mining contributing more than 30% of that segment. Exports, currently around 500 units annually, are targeted to rise to 1,500–2,000 units by 2028–29.
Electrification remains a big bet, with a locally developed battery-powered excavator under trails. Globally, Hitachi Construction Machinery is also preparing to commercialise their battery-operated dump trucks.