Electrification, ADAS, Connectivity Among Five Megatrends Reshaping CV Industry: Tata Motors

India’s commercial vehicle (CV) sector is undergoing a structural transformation, driven by five key megatrends—electrification, connectivity, advanced driver assistance systems (ADAS), software-defined vehicles (SDVs), and customer-focused innovation—according to Tata Motors Executive Director Girish Wagh.

These shifts reflect a global move toward cleaner, smarter, and more service-oriented mobility solutions, as the industry transitions from hardware-centric manufacturing to platform-driven, digitally integrated business models.

Executive Director Girish Wagh presented the strategic outlook during the company’s Investor Day 2025, where he outlined how these shifts are redefining CV design, usage, and monetisation models.

To align with these industry changes, Tata Motors had earlier reorganized its commercial vehicle (CV) operations into eight distinct verticals, spanning trucks, buses, small commercial vehicles (SCVs), international business, application-based vehicles, spares and service, digital solutions, and powertrain systems. This structure, already in place, enables sharper focus and segment-specific execution across its portfolio.
According to the company, electrification is gaining traction in last-mile and intra-city applications, such as electric buses and SCVs, supported by state incentives, total cost of ownership (TCO) advantages, and increased fleet interest.

Connectivity is now a core offering across most new commercial vehicle models, enabling remote diagnostics, fleet visibility, and uptime management, particularly useful for logistics operators in India’s high-utilization transport market.

ADAS features such as lane departure warnings and fatigue monitoring are being progressively introduced, especially in premium buses and trucks, as safety expectations rise and regulatory norms tighten.

Software-defined vehicle (SDV) architecture is being developed to support over-the-air updates, modular feature activation, and integration with logistics platforms. Tata Motors said such systems will be key to reducing lifecycle costs and enhancing value for Indian fleet customers.

The company also cited customer value-centric innovation as a critical pillar—stressing the importance of modular vehicle solutions, tailored financing, and bundled servicing, especially for small fleet operators across diverse Indian operating environments.

As per the presentation, India’s CV industry revenue pool grew at a 7% CAGR between FY19 and FY24, driven by price realisation and value-added offerings, even as industry volumes saw a marginal decline between CY18 and CY23. Tata Motors said this indicates a transition toward revenue models that combine hardware, software, and services.

The eight-vertical structure positions Tata Motors to lead this transformation with better customer alignment, technological agility, and execution discipline across business lines.