Tata Motors Share Price Gains as Company Unveils Bold Strategy Reset Across EV, PV, and CV Segments
Shares of Tata Motors Ltd rose on Tuesday morning following a comprehensive business strategy presentation made by the company during its analyst and investor meeting on June 9. The company unveiled detailed plans for scaling operations, enhancing profitability, and consolidating its leadership across the electric vehicles (EV), passenger vehicles (PV), and commercial vehicles (CV) divisions.
At 9:30 am on June 10, Tata Motors stock was trading at ₹722.75 on the National Stock Exchange (NSE), showing a gain of nearly 0.70% as investors and analysts reacted to the ambitious business realignment presented by the auto giant. The company aims to position itself as a dominant force in India’s rapidly evolving mobility landscape, leveraging technological advancements and future-ready vehicle platforms.
Tata Motors CV Business: Eyeing Market Leadership by FY27
The commercial vehicles (CV) division continues to be one of Tata Motors’ strongest verticals. The company’s new strategy signals renewed aggression in this space. As per the roadmap outlined, Tata Motors is targeting a 40% market share in India’s CV sector by the financial year 2026–27. Additionally, it aims to achieve a ‘teen-level’ EBITDA margin in the segment, underlining its confidence in both scale and profitability.
The CV business will be propelled by investments in key future-focused areas such as decarbonisation, advanced telematics, and the development of software-defined vehicles (SDVs). The company emphasized a growing demand for intelligent and efficient transport solutions, particularly in logistics, freight, and last-mile delivery segments. Tata Motors aims to capitalize on this demand by offering connected, green, and digitally optimized vehicles that cater to the modern commercial market.
Management also indicated an uptick in fleet replacements and logistics upgrades in post-pandemic India, offering tailwinds for the CV cycle recovery. The upcoming Bharat Stage 7 emission norms are also expected to accelerate fleet modernization, a trend that Tata Motors is well-positioned to benefit from.
EV Business: Profitability Achieved, Growth Acceleration Ahead
One of the most significant announcements from Tata Motors was the declaration that its electric vehicle (EV) business had achieved EBITDA break-even in FY25. This milestone establishes the company's EV strategy as both forward-looking and financially viable. As one of the first Indian OEMs to achieve profitability in electric mobility, Tata Motors is now setting its sights higher.
The company is aiming for 20% EV penetration in its passenger vehicle sales by FY27, with a goal to surpass 30% penetration by FY30. The management has assured that the EV division is fully funded for at least the next three years, allowing the business to continue investing in innovation, battery technologies, and production scalability without short-term capital constraints.
Tata Motors is also working on converging the cost structures of EVs and internal combustion engine (ICE) vehicles. This convergence is expected to improve overall operating margins and make EVs more affordable and accessible to a broader customer base in India. With enhanced manufacturing capabilities and ongoing investments in charging infrastructure, the company is positioning itself as a frontrunner in India’s green mobility transition.
The strategic emphasis on software-defined vehicles is equally critical. Tata Motors plans to integrate advanced software features, over-the-air updates, and real-time diagnostics in upcoming EV models, aligning with global trends and enhancing consumer value.
Passenger Vehicles: Margins Focus Amid Soft Demand
In the PV segment, Tata Motors has delivered a solid performance in recent years, becoming one of the top-selling carmakers in the country, particularly in the SUV category. However, the company struck a cautious tone in its latest outlook for the PV division, anticipating muted growth due to competitive pressures and subdued consumer sentiment.
The ongoing global trade uncertainties, rising commodity costs, and inflationary trends are likely to impact overall consumer demand in the short term. However, Tata Motors aims to maintain double-digit EBITDA margins in the PV segment and generate positive free cash flow, a critical indicator of operational health.
The company remains committed to expanding its presence in the high-demand SUV category while refining its product offerings across hatchbacks and sedans. With customer preferences steadily shifting toward utility-focused vehicles, Tata Motors sees an opportunity to leverage its brand strength and design innovations to stay ahead of competitors.
Analyst and Brokerage Views: Mixed Sentiment on Future Outlook
Brokerage responses to Tata Motors' strategic reset have been mixed, with some expressing optimism and others adopting a more cautious approach due to broader macroeconomic factors and execution risks.
Motilal Oswal Financial Services
Rating: Neutral
Target Price: ₹690
Motilal Oswal acknowledged Tata Motors' ambitious vision, especially in the CV and EV segments. However, it highlighted concerns about weak demand in the PV and CV segments and the challenge of maintaining margin improvements amid cost inflation. The brokerage has not revised its earnings estimates for now and will monitor the company’s execution on key deliverables.
Nuvama Institutional Equities
Rating: Reduce
Target Price: ₹670
Nuvama raised concerns over softening demand in key international markets for Jaguar Land Rover (JLR), particularly the United States and China. Domestically, the CV division may face competition from railways and a high base effect. The brokerage forecasted only a 3% CAGR in EBITDA over FY25–FY27, factoring in increasing marketing and promotional expenses.
Emkay Global Financial Services
Rating: Buy
Target Price: ₹800
In contrast to the cautious tone from others, Emkay maintained a bullish stance. The brokerage expects the CV business to drive profitability-led growth, while acknowledging that the PV segment may underperform in the near term due to weak consumer response to recent product launches. It views Tata Motors' overall strategy as credible and consistent with industry shifts.
Stock Price Outlook: What Investors Should Know
As of June 10, Tata Motors stock is priced at ₹722.75, slightly below Emkay’s target of ₹800 but above the neutral and reduce targets from Motilal Oswal and Nuvama respectively. Investors considering Tata Motors for their portfolio need to weigh the long-term potential of the EV and CV segments against short-term risks related to execution, market competition, and global economic instability.
Technical analysts suggest that a breakout above ₹735 could lead to bullish momentum in the short term, while a dip below ₹700 might trigger consolidation or mild correction. Given the upcoming quarterly results and further strategic updates expected in the second half of FY26, investors should monitor developments closely.
Conclusion
Tata Motors is undergoing a significant transformation, driven by its commitment to electrification, innovation, and operational efficiency. The company’s targets across EV, PV, and CV verticals are ambitious but well-structured. The early achievement of breakeven in the EV business provides confidence in the path ahead, while the expansion strategy in the CV segment reaffirms its market leadership ambitions.
However, challenges remain. Demand softness in PVs, global economic uncertainties, and execution risks will continue to test Tata Motors’ resilience. For long-term investors with a high-risk appetite, the stock offers a compelling opportunity to participate in India’s auto evolution story. But prudent portfolio diversification and regular monitoring of company fundamentals are essential.
The next few quarters will be crucial in assessing how effectively Tata Motors translates its strategic vision into sustainable growth and shareholder value.
Join WhatsApp Group
