Tata Motors wants to stick to its profitable growth strategy even as rivals chip market share

The commercial vehicle industry, buoyed by the goods and services tax (GST) cuts, is preparing for the next set of growth after a couple of tepid years, which will be aided by a set of new launches, according to a top company executive.

In an interview with Mint on the sidelines of the Mumbai-based company's launch of 17 next-generation trucks, managing director and chief executive Girish Wagh said that the company is looking at multiple parameters for growth and is not blindly focused on gaining market share at any cost.

“There are multiple parameters that we look at. One is, I would say, revenue share, how is the profitability, how is the dealer profitability, how are we doing on cash, there are multiple parameters put together that we have been tracking," Wagh said.

“I think this journey has been quite satisfying, so to say, for us and in future also, therefore we will work towards this comprehensive set of metrics rather than one market share metric," he added.

According to Federation of Automobile Dealers Associations (Fada) data, CV market number one Tata Motors holds about 33.95% market share, while number two Mahindra holds about 28.22% market share in the country’s commercial vehicle market, which includes small, medium and heavy trucks along with buses.

Refreshed portfolio

Questions on eroding market share propped up after the latest data released by Fada showed that the country’s largest CV maker, Tata, lost nearly 3% market share within a span of one year in 2025 to Mahindra and Mahindra and Ashok Leyland.

“We believe that the industry is on the cusp of probably the next set of growth, and therefore we are bringing this completely refreshed new range to leverage this and also help our customers with better profitability," Wagh said.

“This, therefore, will certainly help us to further strengthen our competitive position in heavy trucks and not only heavy trucks, even in intermediate light medium trucks and help our profitable growth journey, not just market share," he added.

As part of its profitability drive, Wagh said the company will adopt financial prudence in the electric bus space as it prepares to bid for future mega tenders. In December, Tata Motors failed to emerge as the lowest bidder for any lot in the country's largest e-bus tender, for 10,900 e-buses.

"We now run more than 3,600 buses. We have around a cumulative 47-48 crore kilometres of experience under the belt. And therefore, we know what it means to run this business for over 12 years because this is not about a 1-2 year game. It is a 12-year game," Wagh said on questions about the company's strategy for the electric bus space.

"We don't want to sit again here 3 years down the line and then face the questions on financial imprudence," he added, as tenders see aggressive pricing owing to intense competition from new-age players like PMI Electro Mobility and Eka Mobility, and legacy names like VE Commercial Vehicles and Ashok Leyland.

Electric mobility

Adjusting for the loss due to Tata Capital investment, net profit for Tata Motors in the July to September quarter came in at ₹1,159 crore, more than double the ₹498 crore the company recorded a year earlier.

In November, Tata Group completed the demerger of its passenger vehicle and commercial vehicle businesses after the listing of the CV unit on the bourses. Since listing, the CV unit's share price has surged by 31%.

In 2025, commercial vehicle sales in the country grew by 7% to 1.09 million units compared to the year-ago period. The growth rebounded after CV sales closed with flat growth in 2024.

Competition in the industry has also been increasing, with Mahindra acquiring SML Isuzu in May last year to strengthen its position in the trucks and buses segment and close the gap with market leader Tata. Last week, Ashok Leyland inaugurated a new facility in Lucknow to manufacture 5,000 electric vehicles a year.

Analysts believe that although the market share loss has been notable over the last couple of years, the next set of launch cycles can help rebuild momentum in the company’s business.

“Tata Motors' market share loss following the recent downturn in commercial vehicle (CV) demand has been more pronounced in less than 16-tonne trucks. With demand revival likely to be driven by small transporters for small- and medium-size trucks, with its wide product portfolio and strong brand recall, it has good scope to regain market share," Pramod Amthe of InCred Equities wrote in a 5 January note.

Global echoes

Analysts have also started noting the impact on the business from the completion of Italy's Iveco acquisition for the market leader, slated for April. In July last year, the CV maker announced its $4.4 billion acquisition of Italy-based commercial vehicle maker, the largest ever in the Tata Group's automotive history.

The combined Tata Motors and Iveco group would have a significant global presence, with sales of over 540,000 units and revenue of over $25 billion.

“There is little benefit for India's CV market in the short-term as most of Iveco’s products are premium-end high-tonnage trucks, buses and vans, whose market size may be just around 10% of MHCV volume. Medium-term technology investment synergy benefits, large engine portfolio & India export volume improvement are best-case benefits," Amthe of InCred Equities wrote.