Tata Motors Targets 20% Growth in CV Exports with Global Expansion Plans

Automotive giant Tata Motors, is strategically recalibrating its international business, anticipating  more than 20% growth in its commercial vehicle (CV) exports.

Historically, Tata Motors' primary international markets for commercial vehicles have been the SAARC region, followed by Sub-Saharan Africa, the Middle East, and ASEAN. While these established markets remain crucial, the company is now making concerted efforts to broaden its global footprint like Eastern Europe or Latin America,  on the back of vehicles with higher emission standards and alternate fuel technologies, according to Girish Wagh, Executive Director of Tata Motors' commercial vehicle business.

A significant driver for the projected 20% plus growth is the recent entry into North Africa. For instance, Tata Motors has established a presence in Morocco, initially with pickups and now introducing trucks, with plans for buses in the future. Additionally, the company expanded into Egypt, launching its Prima and Ultra range of vehicles, with pickups and buses slated for later introduction.

The company's approach in Sub-Saharan Africa is to sustain its presence, while also actively increasing its reach and entering new countries where it did not operate before the pandemic. 

 "I think through these markets, we expect that actually we should grow very healthy by more than 20% in international business," Wagh noted. Elaborating on the SAARC region, he stated that Tata Motors maintains a strong market share leadership in Bangladesh, Sri Lanka, and Nepal. 

Despite recent economic turbulence in these countries, green shoots are visible, with demand gradually recovering. Bangladesh is seeing demand return, albeit still below pre-COVID levels, and Sri Lanka has reopened for vehicle imports. Nepal's demand, though still significantly lower than its pre-COVID peak of 1,000 vehicles per month, has shown recovery from its lowest point. The strategy here is to maintain and strengthen existing market shares.

Furthermore, Tata Motors claims to be demonstrating good growth in the Middle East market as well.  Specifically, the UAE and Qatar have shown strong performance in the bus segment, where new product launches have garnered good traction. In Saudi Arabia, robust infrastructure development has fueled significant growth in truck demand. Tata Motors is responding by introducing new, higher power-to-weight ratio trucks suitable for the construction and mining sectors in the region.

Beyond these immediate expansion areas, Tata Motors is also actively exploring new markets in Eastern Europe and Latin America. The company believes its current product range, which meets higher emission norms and includes alternate fuel options, makes these regions viable for future entry, the company officials remarked.