Tata Motors reported a decline in domestic wholesale commercial vehicle (CV) volumes, but saw exports grow briskly, albeit on a low base in the fourth quarter of FY25. Domestic CV volumes fell by 4.8% year-over-year to approximately 100,000 units, while exports surged by 29.4% to nearly 6,000 units during the same period.
The company attributed the strong export performance to a rebound in demand from key international markets, including South Asia, the Middle East, and Africa. These regions had previously seen a slump in demand following the Covid-19 pandemic.
PB Balaji, Group Chief Financial Officer of Tata Motors, noted the positive trend: “...the growth is coming back.” He acknowledged that although volumes have not yet returned to pre-slowdown levels, he remains optimistic about continued growth in the coming quarters.
Discussing the broader CV market, Balaji emphasized that fundamental factors for CV growth—such as stable interest rates, steady pricing, controlled delinquencies, and subdued steel inflation—point toward stability in market conditions. He also noted that increased investments signal the potential for sustained CV and GDP growth.
From Tata Motors’ perspective, Balaji expressed confidence that the CV segment will continue to expand its market share and profitability. He cautioned against focusing on a single quarter, given the volatility of quarterly numbers. However, he maintained that the fundamentals for CVs remain strong: “Stable interest rates, steady fuel prices, low delinquencies, and quiet steel inflation—all support a positive market environment.”
Balaji also pointed out that, despite a revenue decline this year, CV profitability improved, potentially marking the first such increase in 25 years. The company’s immediate focus, he added, is on revitalizing the Small Commercial Vehicle (SCV) segment.