Tata Motors to stick to its profitable growth strategy

The firm’s commercial vehicle arm is prioritising profitability over pure market-share gains

- Ayaan Kartik & Abhishek Law

The CV industry, including Tata Motors, is gearing up for a fresh growth cycle, post GST cuts with a wave of new product launches after two subdued years.

(MINT)

Tata Motors Ltd, the commercial vehicle business of the Tata group, wants to continue focus on growing profitability on the back of its product range, even as rivals including Mahindra & Mahindra, Ashok Leyland and VE Commercial Vehicles grow market share.

The commercial vehicle industry, buoyed by the goods and services tax (GST) cuts, is preparing for the next set of growth after a couple of tepid years, which will be aided by new launches, according to a top company executive.

In an interview with Mint on the sidelines of the launch of I7 next-generation trucks in Mumbai, the company’s managing director and chief executive officer Girish Wagh said the company is not blindly focused on gaining market share at any cost.

“There are multiple parameters that we look at. One is, I would say, revenue share, how is the profitability, how is the dealer profitability, how are we doing on cash, there are multiple parameters put together that we have been tracking,” Wagh said, calling the journey so far “quite satisfying”.

“Therefore, we will work towards this comprehensive set of metrics rather than one market share metric,” he added.