Tata Motors Bets on Non-Cyclical Growth Amid CV Slowdown

Tata Motors is actively working to increase its revenue from non-cyclical businesses, which currently represent about 20% of its total income. This strategic move is designed to counteract the anticipated slowdown in the commercial vehicle (CV) sector. The company views this diversification as a natural hedge against the cyclical nature of the CV industry.

Chief Business Operations Officer Girish highlighted parts and services, digital, and e-buses as key growth areas. The aftermarket business is expanding through better spare parts penetration and improved customer uptime. Fleet Edge renewals are bolstering recurring digital revenue, while e-bus operations continue to scale with high fleet uptime and significant green mileage accumulation.

While the September quarter saw strong standalone revenue growth of 42%, future growth is projected to be in the high single digits to low double digits for Q3 FY27. Rising commodity costs and interest rates are noted as pressures, with current price increases not fully covering inflation. Despite these challenges, Tata Motors is focusing on building a more resilient business model.