Tata Motors share price target: Buy, hold or sell TMCV after 17-truck launch?
Tata Motors share: MOFSL said it remains to be seen if TMCV can recover lost share in CVs post these new launches, which has been one of the key investor concerns.
- Jan 21, 2026,
- Updated Jan 21, 2026 8:41 AM IST
Motilal Oswal Financial Services (MOFSL) in a note on Tata Motors Ltd said it attended the launch event in Delhi, where the Tata group company unveiled 17 new trucks across 7 tonne to 55 tonne categories, spanning internal combustion engine and electric vehicle platforms. The brokerage said the launches are built around three pillars namely profitability, safety and sustainability. The recovery of lost market share in commercial vehicles remained the key monitorable, it said.
"It remains to be seen if TMCV can recover lost share in CVs post these new launches, which has been one of the key investor concerns," it said.
MOFSL noted that Tata Motors' recent acquisition of Iveco would expose it to the ongoing global macro uncertainties. It has already factored in a pick-up in domestic CV demand, expecting a 9 per cent volume CAGR over FY25-28E. Besides, the brokerage has also factored in margins at 13 per cent over its forecast period.
"However, post the recent rally, the stock at 22.5 times FY27E and at 20.3 times FY28E EPS appears fairly valued," MOFSL said.
The domestic brokerage maintained 'Neutral' rating with a target price of Rs 417. It values the core business at 13 times EV/Ebitda on September 2027, in line with peers. The brokerage added Rs 12 per share value for Tata Motors' stake in Tata Capital.
Tata Motors was recently demerged into two listed company. The PV entity namely Tata Motors Passenger Vehicles Ltd comprised of Tata Motors’ domestic passenger vehicle operations, the JLR business, stakes in Tata Sons, Tata Steel, Tata Technology, and other investments. The CV entity included the domestic commercial vehicle operations, the Iveco acquisition and a stake in Tata Capital.
MOFSL said Tata Motors has focused on improving operator economics through higher payloads and better fuel efficiency. The company launched a higher payload range offering up to 1.8 tonnes of incremental payload across segments, along with a fuel efficiency series that delivered about 7 per cent fuel savings. The management indicated that these upgrades were launched at negligible incremental cost to customers, MOFSL said.
On safety, the brokerage said TMCV planned to upgrade all four truck cabins — Azura, Ultra, Signa and Prima — to European ECE R29 03 crash safety standards, which exceeded the current Indian AIS 029 norms. MOFSL said this marked a step up in driver safety without materially impacting vehicle pricing.
In electric vehicles, MOFSL said TMCV launched its entire electric truck portfolio across the 9 tonne to 55 tonne segments, built on the iMove architecture. The brokerage said the electric trucks are co-developed with customers and tested across multiple use cases over the past nine months.
MOFSL said operator profitability is central to the new launches. Engineering changes included a redesigned tandem axle suspension on multi axle trucks to enable higher payloads. The brokerage highlighted the launch of the Prima 3540.K with a Cummins 8.5 litre engine, which marked TMCV’s entry into deep mining applications.
In the intermediate and light commercial vehicle segment, MOFSL said TMCV introduced the Azura range, which was positioned to deliver about 7 per cent better fuel efficiency and around 15 per cent higher profitability versus older models.
Motilal Oswal Financial Services (MOFSL) in a note on Tata Motors Ltd said it attended the launch event in Delhi, where the Tata group company unveiled 17 new trucks across 7 tonne to 55 tonne categories, spanning internal combustion engine and electric vehicle platforms. The brokerage said the launches are built around three pillars namely profitability, safety and sustainability. The recovery of lost market share in commercial vehicles remained the key monitorable, it said.
"It remains to be seen if TMCV can recover lost share in CVs post these new launches, which has been one of the key investor concerns," it said.
MOFSL noted that Tata Motors' recent acquisition of Iveco would expose it to the ongoing global macro uncertainties. It has already factored in a pick-up in domestic CV demand, expecting a 9 per cent volume CAGR over FY25-28E. Besides, the brokerage has also factored in margins at 13 per cent over its forecast period.
"However, post the recent rally, the stock at 22.5 times FY27E and at 20.3 times FY28E EPS appears fairly valued," MOFSL said.
The domestic brokerage maintained 'Neutral' rating with a target price of Rs 417. It values the core business at 13 times EV/Ebitda on September 2027, in line with peers. The brokerage added Rs 12 per share value for Tata Motors' stake in Tata Capital.
Tata Motors was recently demerged into two listed company. The PV entity namely Tata Motors Passenger Vehicles Ltd comprised of Tata Motors’ domestic passenger vehicle operations, the JLR business, stakes in Tata Sons, Tata Steel, Tata Technology, and other investments. The CV entity included the domestic commercial vehicle operations, the Iveco acquisition and a stake in Tata Capital.
MOFSL said Tata Motors has focused on improving operator economics through higher payloads and better fuel efficiency. The company launched a higher payload range offering up to 1.8 tonnes of incremental payload across segments, along with a fuel efficiency series that delivered about 7 per cent fuel savings. The management indicated that these upgrades were launched at negligible incremental cost to customers, MOFSL said.
On safety, the brokerage said TMCV planned to upgrade all four truck cabins — Azura, Ultra, Signa and Prima — to European ECE R29 03 crash safety standards, which exceeded the current Indian AIS 029 norms. MOFSL said this marked a step up in driver safety without materially impacting vehicle pricing.
In electric vehicles, MOFSL said TMCV launched its entire electric truck portfolio across the 9 tonne to 55 tonne segments, built on the iMove architecture. The brokerage said the electric trucks are co-developed with customers and tested across multiple use cases over the past nine months.
MOFSL said operator profitability is central to the new launches. Engineering changes included a redesigned tandem axle suspension on multi axle trucks to enable higher payloads. The brokerage highlighted the launch of the Prima 3540.K with a Cummins 8.5 litre engine, which marked TMCV’s entry into deep mining applications.
In the intermediate and light commercial vehicle segment, MOFSL said TMCV introduced the Azura range, which was positioned to deliver about 7 per cent better fuel efficiency and around 15 per cent higher profitability versus older models.