Tata Motors Plans To Reorganise Commercial Vehicle Business Ahead Of Public Listing

Tata Motors is restructuring its commercial vehicle business into 8 sub-segments ahead of public listing next fiscal year to enhance financial resilience. Check out for more.

Key Highlights

• With set financial metrics for each of the 8 sub-segments, Tata Motors is restructuring its commercial vehicle business ahead of a planned public listing.
• The truck industry, which encompasses heavy, intermediate, and medium commercial vehicles, is one of the recognised sub-segments.
• The third sub-segment comprises small commercial vehicles, such as pickups and mini trucks, which are followed by buses and vans.

After the demerger of Tata Motors’ passenger and commercial vehicle divisions into two distinct entities in August last year, the company is reorganising its commercial vehicle business with specific financial metrics for each of the 8 sub-segments in preparation for a projected public listing in the upcoming fiscal year.

Related Link: The Demerger of Tata Motors CV Business: How Does It Impact Customers?

Tata Commercial Vehicle Restructuring In 2025

Among the sub-segments that have been recognised is the truck industry, which includes heavy, intermediate, and medium commercial vehicles. Small commercial vehicles, such as pickups and mini trucks, make up the third sub-segment, followed by buses and vans. 

The whole downstream or non-vehicle business, including spare parts, servicing, etc., is included in the fourth sub-segment. The fifth component is international business, where the Tata Commercial Vehicle will develop its long-term plan. Fleet Edge, AI product-related services, and smart mobility will be the remaining sub-segments.

Official Insights From Tata Motors

Speaking about the restructuring of the Tata commercial vehicle business, Girish Wagh, Executive Director, Tata Motors, said, “The separation has enabled the business to chart its independent territory and reach its aspirations. The restructuring exercise - which received critical inputs from N. Chandrasekaran, Chairman of Tata Motors - is likely to be completed ahead of the listing of the CV entity. 

He further added, “The exercise is nearing completion and it will help the CV business achieve more resilient financial outcomes through the cyclical swing characteristic of the truck business. Due to the behaviour of the market and customers, and also because of some of the areas that Tata Motors has entered, we have identified 8 sub-segments within the CV business. Each of these are now operating independently.”

“Tata Motors’ CV business will actively pursue plans to expand beyond South Asia and Africa into North Africa, the Middle East and ASEAN countries by developing suitable products, distribution, and financing.” 

Tata Commercial Vehicle Performance In 2024

In 2024, truck and bus sales were negatively impacted by election-related uncertainty, decreased infrastructure spending, and a deteriorating economy, which primarily affected Tata Motors. According to the Federation of Automobile Dealers Associations (FADA) sales report, its market share decreased from 36.42% to 34.43% during that time, while its domestic sales decreased 5.3% YoY to 3,45,928 units from the previous year.

What We Think

A separate balance sheet will provide more information and transparency, even though the company has been reporting the CV and PV businesses’ financials separately for a few years. After the public listing, it would be beneficial if the company offered segmented performance within the CV business. This would help investors in adopting a more accurate valuation approach.

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