Tata Motors CV has estimated that its domestic commercial vehicle market share will be 40% in financial year 2028, with margins consistently in double-digits throughout the cycle.
During the upcycle, the company expects margins to hit teens, and investments to scale up to 2% to 4% of its revenue.
By financial year 2028, Tata Motors CV is aiming for free cash flow to be between 7% to 9% of revenue, while its Return on Capital Employed could jump to 30% to 35% after the Iveco deal.
The company went on to further said that it has de-risked its profile through digital and downstream services, while demand will be anchored by VAHAN-focused market data.
Growth in the company’s non-cyclical business is projected to be 1.5 times the growth in the cyclical business.
Earlier this week, Tata Motors said it has secured over 3,400 orders for electrical CVs across freight, logistics and passenger mobility segments. These include 2,000 small CVs and pick-ups, nearly 900 rucks and around 500 buses.
The vehicles will be deployed across e-commerce, FMCG, logistics, mining, steel, cement operations and inter and intra-city passenger transport sectors.
Last week, the company said it will be hiking the prices of its commercial vehicles by up to 2.5% from July 1. The price hike will vary across models and variants and is aimed to partially offset the impact of the increasing commodity prices and other input costs, the company said.
Shares of Tata Motors CV are trading 0.8% lower on Tuesday at ₹405.05. The stock is up 5% in the last one month.
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