CV industry volumes likely to cross pre-pandemic peak, says Tata Motors
This story was originally published at 21:51 IST on 29 January 2026
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--Tata Motors: Volumes in CV industry likely to cross FY19 peak
--Comments by Tata Motors' mgmt in post-earnings press conference
--Tata Motors: Expect good sales momentum for CVs to continue in Q4
--Tata Motors: Price increase in non-ferrous metals higher than steel
--Tata Motors: Growth in overseas ops led by West Asia, North Africa mkts
--Tata Motors: Unclear if South Africa will impose tariffs on Indian vehicles
--Tata Motors: Some approvals for Iveco Group acquisition still awaited
NEW DELHI – Volumes in India's commercial vehicle industry are likely to surpass the pre-COVID-19 peak seen in the financial year 2018-19 (Apr-Mar), supported by sustained freight growth, a revival in infrastructure activity, and improving fleet utilisation, the Tata Motors Ltd management told a post-earnings press conference Thursday. The management said the momentum seen in the December quarter is expected to carry on into the fourth quarter, with demand holding up across most commercial vehicle segments.
"At the rate at which we are moving, industry volumes for the entire year are likely to cross the earlier peak of FY19 in absolute numbers," the management said, adding that the extent of the overshoot will become clearer over the next two months.
The management said demand has remained firm so far, continuing the strong momentum seen in the December quarter. Early trends in the March quarter show healthy demand across most commercial vehicle sub-segments, supported by sustained freight movement and steady execution of infrastructure projects, it said. It added that the pick-up seen after the monsoon has continued into the current quarter, reinforcing confidence that sales momentum for commercial vehicles will remain strong through the final quarter of FY26.
The management said growth in freight should translate into a volume uptick for commercial vehicles as higher levels of utilisation drive replacement demand. "Growth in freight available in billion tonne-kilometres broadly tracks GDP growth, and as these enablers remain in place, we expect improvement in fleet utilisation and demand," it said.
On raw material trends, the management acknowledged a rise in steel prices across hot-rolled, cold-rolled, and long products but said the impact has been lower compared to the impact from the rise in prices of non-ferrous metals. "Prices of non-ferrous metals such as copper have increased faster than steel prices," it said.
Tata Motors said growth in overseas operations during the quarter was led by countries that are part of the South Asian Association for Regional Cooperation as well as by markets in West Asia and North Africa. The management pointed to the recovery in Sri Lanka, alongside growth in Bangladesh and Nepal, as key contributors within the SAARC region. In West Asia and North Africa, higher demand for buses and Euro-VI-compliant offerings supported the growth in volumes.
Addressing reports of potential tariffs by South Africa on Indian automobiles, the management said there is no clarity yet on the subject. "There is no definitive clarity on whether the proposed tariffs will apply only to fully built passenger vehicles or whether commercial vehicles will also be included," it said.
The company said it has a local assembly facility in South Africa which provides some operational flexibility and it continues to engage with relevant stakeholders. "We are closely monitoring developments and will calibrate our strategy as the policy landscape evolves," the management said.
On the proposed acquisition of Iveco Group in Italy, Tata Motors said it is awaiting completion of some regulatory approvals, though most have already been secured. The acquisition is moving as per the company's initial timeline to close the deal within the first half of 2026, the management said.
The management described the India–European Union free trade agreement as broadly positive, citing potential duty benefits and longer-term strategic optionality. The company said it will retain its capital expenditure guidance of around 2–4% of revenue. End
Reported by Pallavi Singhal and Anand JC
Edited by Rajeev Pai
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