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Informist, Thursday, Nov. 13, 2025

MUMBAI/NEW DELHI – Newly listed Tata Motors Ltd., which houses the commercial vehicle operations, expects sales to grow in high single digits in the second half of 2025-26 (Apr-Mar), driven by an uptick in infrastructure activity, an improvement in consumption, and the full impact of the goods and services tax cut. "With a robust pipeline of upcoming launches and a richer, more customer-aligned product portfolio, we are well-positioned to accelerate this momentum," the company's management said at a post-earnings virtual press conference.

"Although the quarter began on a subdued note, the rollout of GST 2.0 and the onset of the festive season unlocked a strong wave of demand across segments," the company management said. Tata Motors has seen a twofold impact on demand due to the cut in GST, first from business-to-consumer customers who do not avail themselves of input tax credit. This primary impact has been the most visible in the light commercial vehicles segment. Medium- to heavy-duty commercial vehicles have seen a secondary impact, with increased consumption of various goods following the GST cut, leading to higher road freight transport.

While medium- and heavy-commercial vehicles saw some pressure in August, demand has picked up since September, Tata Motors said. The company has seen an uptick in mining infrastructure projects, leading to a seasonally high increase in demand for tippers. There is also an improved pipeline for cargo vehicles, driven by strong demand for newer models, the company said.

After the markets closed on Thursday, Tata Motors reported a consolidated net loss of INR 8.67 billion on revenues of INR 185.85 billion. The company's bottom line was impacted by a mark-to-market loss of INR 20.27 billion on its investments in recently listed subsidiary Tata Capital Ltd.

The management said the company's plan to acquire Italian automaker Iveco is expected to be concluded in April as planned. Tata Motors announced in 2025 that it planned to acquire Italian automaker Iveco in an all-cash deal valued at INR 380 billion. Tata Motors will initially fund the acquisition through a bridge loan, which will then be refinanced via a mix of equity and long-term debt. The company expects to be debt-free in three years. Combined with Iveco, Tata Motors' revenue this year is expected to be roughly $24 billion.  

Effective Oct. 1, Tata Motors demerged its commercial vehicle operations and passenger vehicle operations into separate companies. Tata Motors currently houses only the company's commercial vehicle operations, with the passenger vehicle business now under Tata Motors Passenger Vehicles Ltd. "This demerger will now allow sharper strategic focus in Tata Motors' commercial vehicles on the commercial vehicle value chain and the logistics, road logistics value chain. And the business will also be more empowered to look at all the opportunities favourably and explore those which can be value-accretive for all the stakeholders," the company said. Tata Motors intends to incur a capital expenditure of 2-4% of its annual revenue going forward. 

Thursday, its shares closed at INR 320.75 on the National Stock Exchange, down 2.6%.  End

Reported by Anand JC and Sagar Sen

Edited by Saji George Titus

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