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Informist, Wednesday, Aug. 12, 2026

 

--Tata Motors: Expect to see healthy double-digit YoY CV sales growth Q2 

--CONTEXT: Comments by Tata Motors mgmt in post-earnings analyst call 

--Tata Motors: Electric CV demand outlook positive; expect bus tenders soon 

 

By Anand JC and Nandini Sinha

 

MUMBAI – The wholesale sales of commercial vehicles in India are expected to grow in "healthy double-digits" in the ongoing September quarter, Tata Motors Ltd. said on Wednesday. "Last year, as you recollect, post the GST rate correction, the market really picked up from the month of September. (With) the kind of growth that we have seen in July, it will probably be safe to say that Q2 will end up with a double-digit growth," a senior company official told analysts in a post-earnings call.

 

In the June quarter, Tata Motors sold 108,700 commercial vehicles, up 26% on year. Fleet utilisation improved in each month of the June quarter, yet for the entire quarter, it was "slightly" lower year-on-year. This follows the high volume uptick seen in Oct-Mar, the company said. 

 

Tata Motors reported its earnings for the June quarter after market hours. The company reported a net profit of INR 15.28 billion on revenues of INR 193.29 billion. Its profit growth in the reporting period was affected by rising commodity costs.

 

"There is further cost pressure ahead of us in terms of commodities, few of the commodities, steel, rubber, etc. It is our endeavour to ensure that the price hike and our own internal cost management actions enable us to tide over this tough commodity challenge," the company said. Tata Motors hiked prices of its vehicles by 2% in April, 2.5% in July, and plans a hike again in the September quarter. "I can certainly say that the cumulative price increase during this year has been quite significant," the company said. 

 

Tata Motors also has a strong presence in the electric commercial vehicle space, including in small vehicles, trucks, and buses. Customers are finding electric commercial vehicles more attractive, especially after the recent hikes in prices of diesel and compressed natural gas. This is helping the electric variants achieve parity in the total cost of ownership with conventional vehicles sooner. 

 

"On EV trucks, both heavy commercial vehicle tractors and tippers, there is a very strong interest from the customer, robust engagement and the customers are looking forward for these kinds of decarbonising solutions," the company said. Tata Motors currently has an order book of over 850 electric buses. These include orders from private customers, along with tenders it won from authorities in Tamil Nadu, Gujarat, Telangana, and Odisha.

    

"The demand outlook (for electric commercial vehicles), is quite positive. In addition (to its existing orders) as part of PM-eBus Sewa, there are a few more tenders which are also on the way," a senior official said.  

 

Yet, the robust demand has inadvertently created a bottleneck in the supply chain. Amid an industry-wide surge in demand for electric vehicles, including in China, the demand for lithium-ion cells in China, which is a major supplier of the commodity, has gone up. The lead time for getting these cells and converting them into batteries is currently high. Tata Motors had placed orders for a higher quantum of cells around two months back, which means the issue may be resolved by the end of the September quarter, the company said.

 

Wednesday, shares of the company closed 1.6% higher at INR 457.05 apiece on the National Stock Exchange.  End

 

Edited by Deepshikha Bhardwaj

 

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