Tata Motors CV Shares Seen Rising to ₹513, Says InCred

By Jony Shekhawat | Published Date : January 08, 2026

Small truck operators and GST savings drive Tata commercial vehicle demand.

InCred Equities has started coverage on Tata Motors’ commercial vehicle business. The brokerage has given an ‘Add’ rating with a price target of ₹513 per share. This means the stock can go up around 16% from current levels.

Strong Position Among Small Truck Operators

Table of Contents

1. Strong Position Among Small Truck Operators

2. GST Cut Improves Business for Transporters

3. Input Cost Savings Boost Cash Flow

4. Demand Recovery Likely to Continue Till FY28

5. Valuation and Current Share Price

Also Read: December 2025 CV Sales Jump 24.6% YoY

InCred said Tata Motors is well placed among small transporters. Its wide range of Tata trucks across different tonnage segments gives it an advantage. From Tata Ace and Tata mini trucks to Tata tippers and Tata buses, the company covers most needs of small and medium operators.

GST Cut Improves Business for Transporters

According to the brokerage, demand for commercial vehicles is coming back after a long slowdown. The recovery is mainly led by small truck owners. A GST rate cut in September 2025 has improved their earnings and reduced daily operating costs.

Better freight rates have also helped. With higher income and lower expenses, many operators are now planning to buy new trucks.

Input Cost Savings Boost Cash Flow

InCred pointed out that GST savings on tyres, lubricants, and spare parts are improving cash flow for small operators. Vehicle prices have also come down in some cases. Lower costs mean faster payback periods, making new Tata trucks more affordable, especially under the reverse charge GST system.

Demand Recovery Likely to Continue Till FY28

The brokerage expects this recovery to continue over the next few years. Lower interest rates and improving industrial activity are expected to support demand. Growth in factory output, as seen in the Index of Industrial Production, is another positive sign.

Because of this, InCred expects double-digit volume growth in commercial vehicles during the upcycle.

Valuation and Current Share Price

InCred has valued Tata Motors’ CV business at 12.5 times EV to EBITDA. Other business segments are valued at around ₹25 per share, leading to the final target price of ₹513. On Monday, Tata Motors CV shares were trading at ₹428.95, down about 3% during the session.

Also Read: BPCL Sends Out Its First 1G Bio-Ethanol Tanker From Bargarh

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Frequently Asked Questions on Commercial Vehicles

Q1. What kind of mileage do Tata commercial vehicles offer?

Ans. Mileage in Tata commercial vehicles depends on the segment and usage. Light trucks usually give better fuel efficiency, while heavy trucks deliver stable mileage on long highway routes when driven with proper load and speed.

Q2. What fuel options are available in Tata commercial vehicles?

Ans. Tata commercial vehicles are available in diesel, CNG, electric, and alternative fuel options. Electric commercial vehicles are becoming popular for city delivery and short-distance operations.

Q3. How is the maintenance cost of Tata trucks?

Ans. Tata trucks are known for reasonable maintenance costs. A wide service network and easily available spare parts help keep overall running costs under control.

Q4. Which business uses are Tata commercial vehicles suitable for?

Ans. Tata commercial vehicles are suitable for logistics, construction, e-commerce delivery, tipper operations, and public transport. Different models are available to match various payload and route requirements.

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