Tata Motors Plans Rs 3,000 Cr INR Annual CV Capex

Tata Motors expects India’s commercial vehicle (CV) market to grow 3–5% annually till FY2030. The company believes a strong infrastructure push, stable regulations, and rising freight demand will drive this growth.

At Investor Day 2025, Girish Wagh, Executive Director–Commercial Vehicles, presented the company’s outlook. He shared Tata Motors' plan to build leadership, improve profitability, and scale future-ready vehicle technologies.

Freight movement and profitability improve.

Tata Motors sees road freight (measured in BTKM) growing 5–7% annually. This trend supports CV volume growth. Data shows freight rates rose 14% and transporter profitability improved 5% between Jan 2023 and May 2025. Fleet operators now earn better returns. This improvement creates room for expansion and upgrades.

Capital Expenditure Set Between ₹1,500–3,000 Cr Annually

Tata Motors will invest ₹1,500-3,000 crore every year—around 2–4% of its CV revenue of ₹75,000 crore in FY25. The company will direct this spending to three core areas:

• Multi-energy trucks: battery electric, CNG, LNG, hydrogen
  
• Safety tech: ADAS systems, driver monitoring
  
• Digital tools: uptime assurance, cost control
  

Wagh said the company wants to “deliver double-digit EBITDA across cycles” while beating industry revenue growth.

Growth targets

The CV division is working toward these goals:

• 40% domestic market share
  
• Teens-level EBITDA margin
  
• Free cash flow at 7–9% of revenue
  
• High, consistent ROCE with less volatility
  

Tata Motors aims to reduce dependence on market cycles. It’s building non-cyclical revenue using digital platforms, export markets, and aftermarket services.

Long-Term Vision Stays Firm

Wagh reiterated the company’s long-term aim is to be a trusted global mobility solutions leader with sustainability at the core.

Tata Motors is building around

• Smart, connected trucks
  
• AI-led digital services
  
• Skilled, future-ready talent
  
• Sustainable product lines
  

Platforms like Fleet Edge and Freight Tiger are key to delivering end-to-end lifecycle value to fleets.

Conclusion: Strategy Focuses on Full Ecosystem

The company wants to exceed expectations—of investors and customers alike. By linking tech, service, and sustainability, Tata Motors is preparing for a cleaner, smarter commercial transport future. Its CV roadmap blends innovation, resilience, and scale—with CNG, LNG, and hydrogen leading the energy shift.

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