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Informist, Wednesday, May 13, 2026

--CONTEXT: Tata Motors mgmt's comments in post-earnings virtual press meet
--Tata Motors: Iveco deal to be completed by September quarter
--Tata Motors: Will prioritise scaling up next-gen truck portfolio
--Tata Motors: Underlying demand intact despite 2 months of West Asia war
--Tata Motors: War impacted our exports to West Asia, North Africa
--Tata Motors: Will see single-digit growth in CV sales in FY27
--Tata Motors: No change to co's capex plan in FY27 despite West Asia war
--Tata Motors: SAARC markets were doing well before, now affected by war
--Tata Motors: Impact of platinum duty hike less than that of other inputs
--Tata Motors: Impact of commodity price rise Q1 quite severe compared to Q4

--Tata Motors:Not passing on full impact of input cost rise to protect growth
 

MUMBAI – Tata Motors Ltd. Wednesday said it expects the despatches of its commercial vehicles to grow in single-digits in 2026-27 (Apr-Mar) amid the ongoing war in West Asia, which has disrupted supply chains, affected the supply of fuel to the company's key markets, and led to a sharp increase in commodity costs. Despatches of commercial vehicles by Tata Motors grew 24% on year to 113,700 units in FY26.

While the underlying fundamentals for the commercial vehicle industry remain intact at home, the company flagged certain issues with its markets overseas. For example, select countries part of the South Asian Association for Regional Cooperation, like Sri Lanka, Bangladesh, and Nepal, were seeing good growth before the war in the Persian Gulf. However, sales in these countries have since been negatively affected.

"I think Sri Lanka market is the one which has taken the maximum hit, frankly, because of not just the fuel price increase, it's also because of the non-availability of fuel," Girish Wagh, the company's managing director and chief executive officer, told reporters in a post-earnings conference call. The company's exports to West Asia and North Africa have also been affected because of the war.

Yet, Wagh is banking on West Asia to grow faster in the coming times. "We also believe that once this event or this war is over, actually, the Middle East market will grow even faster because there will be a higher need for some of the infrastructure, etc., related work," Wagh said. 

Tata Motors expects to spend around 2-4% of its revenue towards capital expenditure in FY27, despite the ongoing war. The company has prioritised scaling up its next-generation truck portfolio and electric vehicle range, driving profitable market share growth in buses, and consolidating gains in the small vehicle commercial segment.

Tata Motors has extended the timeframe for the completion of its acquisition of Italian multinational transport vehicle manufacturing company Iveco. It had previously expected the deal to be concluded in the June quarter, but that has now been pushed to the September quarter.

Most of the regulatory approvals for the deal have been secured, barring the financial regulatory approvals in France and Spain. "We have been pursuing it, and there have been a lot of additional papers, questions that have been asked by the regulator, which have been furnished. So I think we are actively pursuing this and we expect an early closure," Wagh said.  MORE

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Tata Motors flagged the severe, broad-based nature of commodity inflation, which appears to be worse in the June quarter than in the March quarter. The company had increased prices of its vehicles by 1% in the quarter under review and by another 2% in April. "We have decided not to pass through and we are going to work on other cost agendas to ensure that we are able to manage this situation because we don't want to disturb the growth momentum by passing on the entire commodity increase," Wagh said. 

The Centre late Tuesday hiked the import duty on platinum to 15.4% from 6.4% to conserve foreign exchange. "Actually, at an overall basis, the impact of this platinum duty increase and therefore platinum cost increase is not going to be that significant as compared to the other commodity increases that we are facing, which are steel, aluminium, rubber, and also the other precious group metals," Wagh said.

The company reported a net profit of INR 24.06 billion on revenues of INR 244.52 billion for the March quarter. Wednesday, its shares closed 0.7% lower at INR 384.25 on the National Stock Exchange.  End

Reported by Anand JC and Prateem Rohanekar

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