Tata Motors Highlights 5 Big Trends Shaping Commercial Vehicle Sector

Key Highlights:

• Five key trends: electrification, connectivity, ADAS, SDVs, and customer-focused innovation.
• Strategy shared at Investor Day 2025 shows shift to digital, platform-based models.
• CV operations reorganised into eight verticals for better focus and execution.
• Electrification is growing in buses and SCVs due to incentives and cost advantages.
• Connectivity, ADAS, SDVs, and customer services added to meet new demands.

India’s commercial vehicle (CV) sector is changing fast. Tata Motors Executive Director Girish Wagh says five key trends are driving this shift: electrification, connectivity, advanced driver assistance systems (ADAS), software-defined vehicles (SDVs), and customer-focused innovation. These changes show a global move from hardware-based manufacturing to digital, service-based models.

New Strategy Shared at Investor Day 2025

Girish Wagh shared this vision during Tata Motors’ Investor Day 2025. He explained how CV design, usage, and business models are evolving. To match these changes, Tata Motors earlier reorganized its CV business into eight separate areas: trucks, buses, small commercial vehicles (SCVs), international business, application-based vehicles, spares and service, digital solutions, and powertrain systems. This helps the company focus better on each segment.

Electrification Growing in City Transport

Electric vehicles are becoming popular for last-mile and city transport. Electric buses and SCVs are growing due to state support, lower running costs, and rising interest from fleet owners. Most new CV models come with connectivity features. These include remote diagnostics, fleet tracking, and uptime management, very helpful for India’s busy logistics sector.

New Features Added for Safety

Safety features like lane departure warnings and fatigue alerts are being added to high-end buses and trucks. These are important as safety rules get stricter. Software-defined vehicles will support over-the-air updates and link with logistics platforms. Tata Motors says these features will help cut costs and add more value for fleet owners.

Tata Motors is also focusing on modular vehicles, easy financing, and bundled services. These are especially useful for small fleet owners in different regions of India.

Industry Revenue Model Changing

Between FY19 and FY24, the CV sector’s revenue grew by 7% each year, even though total vehicle volumes dropped slightly from CY18 to CY23. This shows a shift to earning through a mix of hardware, software, and services. Tata Motors says its eight-part structure helps it stay ahead in this changing market, with better focus, technology, and customer service.

Also Read: Tata Motors Focuses on Small Commercial Vehicle Segment After Strong FY25 Performance

CMV360 Says

Tata Motors is taking the right steps by focusing on modern trends like electrification, connectivity, and customer needs. These changes are not just about technology; they’re making commercial vehicles safer, more efficient, and easier to manage.