Tata Motors CV can cross 1 million vehicles after Iveco deal: N Chandrasekaran at AGM

Tata Motors Commercial Vehicles (CV) said on Monday it sees a path to crossing 1 million annual vehicle sales after completion of its proposed acquisition of Italy's Iveco Group, while expressing confidence that structural drivers such as infrastructure spending, freight growth and stable regulations will continue to support the commercial vehicle industry despite near-term risks from higher fuel prices.

Addressing shareholders at the company's first annual general meeting after the demerger of Tata Motors into two separate entities, Chairman N. Chandrasekaran said the proposed Iveco acquisition would significantly expand the company's global footprint.

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"Together between Tata Motors Commercial Vehicles and Iveco, we will optimise scale and grow to be ranked amongst the top four commercial vehicle entities globally. Together we will be in the range of six lakh vehicles to start and easily see us crossing one million vehicles in the years to come," he said.

Managing Director & CEO Girish Wagh said the acquisition would make Tata Motors Commercial Vehicles the fourth-largest player globally in the above six-tonne commercial vehicle segment, with a combined footprint across Europe, Africa, Latin America, SAARC, ASEAN, Australia and New Zealand.

Wagh added that the company has secured most regulatory approvals and expects to complete the transaction in the second quarter of FY27.

Long-term demand drivers intact

Despite geopolitical uncertainties and fuel price volatility, the company said it expects the domestic commercial vehicle market to continue growing, supported by long-term structural demand drivers.

Wagh said domestic commercial vehicle demand remains healthy following the GST rate rationalisation in September 2025, with continued government spending on infrastructure further supporting freight activity.

"Fuel price, especially after the Middle East crisis, is one of the near-term headwinds. However, it is already easing in international markets," he said.

He added that vehicle scrappage and electrification would further support industry growth.

"The tailwinds are structural and durable. The headwinds appear to be cyclical and manageable, and therefore we see the CV industry growing," Wagh said.

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He said Tata Motors CV's next phase of growth would rest on three pillars—strengthening its domestic leadership, scaling new growth engines and expanding globally—with technology, artificial intelligence and sustainability acting as key enablers.

Downstream, digital businesses gather pace

The company said its strategy of building non-cyclical revenue streams is reducing dependence on vehicle sales and making earnings more resilient across industry cycles.

Chandrasekaran said non-cyclical businesses, including spares and services, grew 18.2% during FY26 and are contributing an increasing share of profitability.

Wagh said these businesses have grown at nearly 2.7 times the CAGR of the domestic cyclical commercial vehicle business over the past four years.

"The non-cyclical businesses have been growing at approximately 2.7 times the CAGR of domestic cyclical businesses. This has been a deliberate strategic focus... because increasing the contribution from non-cyclical businesses creates a more resilient earnings profile," he said.

The company's electric mobility business has deployed more than 3,800 electric buses across 10 cities, covering over 500 million kilometres with uptime exceeding 95%.

Its connected vehicle platform Fleet Edge has crossed one million connected vehicles, while Tata Motors plans to consolidate its digital businesses under a new entity, AIEQU Mobility, following the increase in its stake in Freight Tiger to around 63%.

"The objective behind AIEQU Mobility is to build an integrated technology-led logistics ecosystem," Wagh said.

International, domestic demand

The company also highlighted growing opportunities outside India, supported by a large export order and expanding overseas presence.

During FY26, Tata Motors CV secured an order for 70,000 Yodha and Ultra trucks from Indonesia, while its international business grew 53.9%, aided by deeper market penetration and a stronger order book.

At home, Wagh said the domestic market continues to benefit from infrastructure investments and improving freight activity, while commercial passenger vehicle demand is being supported by tourism and shared mobility.

Financial performance

For FY26, Tata Motors CV reported standalone wholesales of 428,100 vehicles, up 14% year-on-year, while revenue rose 11% to ₹77,400 crore.

The company also received its first international investment-grade credit rating as an independent listed entity. The board has recommended a final dividend of ₹4 per share, subject to shareholder approval.