Tata Motors CV Business Targets Bigger Growth by FY28

By Jony Shekhawat | Published Date : June 23, 2026

Tata Motors plans to strengthen its commercial vehicle business through market share growth, digital innovation and global expansion, while targeting improved profitability and stronger presence across multiple vehicle segments by FY28.

Jun 23, 2026 | 4 min read | Tata Commercial Vehicles 

Tata Motors has a plan to grow its commercial vehicle business over the next few years. The company wants Tata Motors to own forty percent of the market in India by the year twenty-twenty-eight. Tata Motors also wants to make sure it is making a lot of money and giving returns to the people who have invested in Tata Motors. Besides its business Tata Motors is also looking at digital platforms and the plan to buy IVECO to help Tata Motors grow in the future.

Strong FY26 Performance Gives Confidence

Table of Contents

1. Strong FY26 Performance Gives Confidence

2. Market Share Goal Will Need Extra Effort

3. IVECO Deal Could Open New Opportunities

4. Digital Platforms Becoming a Key Growth Driver

5. Risks Remain, But Outlook Stays Positive

6. Looking Ahead

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The company is now setting targets after a financial year FY26. This was the full year for their commercial vehicle business on its own after it was separated from the rest of the company in October 2025. During FY26, they sold 428,000 vehicles to dealers up from 377,000 the year. Their total income was Rs 77,399 crore. They also did a bit better on profits with EBITDA margins going from 12% to 13.2%.

The company also made a lot of cash Rs 9,186 crore, which's about 12% of what they earned. Tata Motors did well with its commercial vehicles making an Auto ROCE of 72%. This is one of the best, in the industry. These numbers have strengthened management's confidence as it prepares for the next phase of growth.

Market Share Goal Will Need Extra Effort

While the financial performance was encouraging, Tata Motors still has work to do on the market share front. The company's overall commercial vehicle market share slipped to 35.7% in FY26 from 37.1% in the previous year. The decline was mainly seen in the intermediate and light commercial vehicle segment, commercial passenger vehicles and the small commercial vehicle and pickup category.

However, Tata trucks continued to maintain their dominance in the heavy truck segment. The company retained around 55% market share in HCVs, keeping its leadership position intact. The biggest challenge appears to be the SCV and pickup segment. Although volumes grew by more than 8%, market share in the category dropped to 26.8%. This means Tata pickups and small cargo vehicles will require greater focus if the company wants to achieve its 40% market share target by FY28.

IVECO Deal Could Open New Opportunities

One of the most important parts of Tata Motors' future strategy is the planned acquisition of IVECO Group. The deal is expected to close during the second quarter of FY27, subject to final approvals. Once completed, Tata Motors says it could become the world's fourth-largest commercial vehicle manufacturer.

The acquisition will allow Tata commercial vehicles to expand beyond their traditional markets. IVECO has a strong presence in Europe, Latin America and Australia-New Zealand, regions where Tata currently has limited exposure. Management believes the combination of Tata's cost-efficient product range and IVECO's premium low-emission vehicles could create significant opportunities in the global market.

Digital Platforms Becoming a Key Growth Driver

Apart from selling vehicles, Tata Motors is also investing heavily in digital solutions. Its Fleet Edge and Freight Tiger businesses have now been brought together under a new mobility platform called AIEQU Mobility. Fleet Edge recently crossed the milestone of one million connected vehicles, highlighting the increasing adoption of digital fleet management tools among transport operators.

The company's long-term vision is even bigger. It wants AIEQU Mobility to evolve into an AI-driven logistics platform that can serve fleets across different vehicle brands. Over the next few years, Tata Motors hopes to have around three million connected vehicles on the platform. This could create a new source of recurring revenue while strengthening relationships with fleet owners.

Risks Remain, But Outlook Stays Positive

Like every automaker, Tata Motors faces a few challenges in the near term. The company has pointed to commodity price fluctuations, geopolitical uncertainties affecting supply chains and possible interest rate pressures as factors that could impact performance during FY27.

Even so, management remains optimistic. It believes these challenges are temporary and manageable compared to the long-term opportunities available in the commercial vehicle sector. Growing infrastructure activity, increasing freight demand, electrification of fleets and rising adoption of connected vehicle technologies are expected to support the industry over the coming years.

Looking Ahead

Tata Motors has set itself some ambitious goals for FY28. Reaching a 40% market share will not be easy, especially after recent declines in the SCV and pickup segments. However, the company believes a combination of stronger products, digital services and global expansion can help bridge the gap.

With Tata electric trucks continuing to lead the heavy-duty segment, Tata pickups remaining an important focus area and the IVECO deal potentially opening new international markets, the company appears determined to strengthen its position in the commercial vehicle industry over the next few years.

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Frequently Asked Questions on Commercial Vehicles

Q1. What is the starting price of Tata commercial vehicles in India?

Ans. Tata commercial vehicles are available across multiple segments. Entry-level Tata pickups and mini trucks generally start from around ₹5 lakh to ₹8 lakh, while heavy-duty Tata trucks can cost significantly more depending on configuration and application.

Q2. Which Tata commercial vehicle offers the best mileage?

Ans. Mileage varies by segment and operating conditions. Tata Ace, Tata Intra and other small commercial vehicles are often preferred by small businesses due to their fuel efficiency and lower running costs.

Q3. What is the loading capacity of Tata pickup vehicles?

Ans. Tata pickup models such as the Intra range are available with payload capacities ranging from around 1 tonne to over 1.5 tonnes, depending on the variant and specifications.

Q4. Which Tata commercial vehicle is suitable for small business owners?

Ans. Models like Tata Ace, Tata Intra and Tata Yodha are commonly chosen by small business owners for city deliveries, rural transport operations and last-mile logistics because of their practicality and wide service network.

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