How Tata Motors’ Newly Listed CV Arm Compares With M&M, Ashok Leyland, and Eicher Motors in FY26

Tata Motors’ commercial vehicle (CV) division has taken centre stage in the domestic automotive landscape after debuting as an independently listed entity earlier this week. The business, now trading under the name Tata Motors Ltd (TMCV), listed at a premium of over 28% on November 12, marking one of the most closely watched corporate events of the year and bringing new attention to the commercial vehicle sector.

The demerger, effective from October 1, 2025, separated the company’s passenger and commercial operations into two publicly traded units—TMCV and Tata Motors Passenger Vehicles (TMPV). As part of the process, shareholders received one TMCV share for every Tata Motors share held as of October 14. TMCV has also been placed under SEBI’s trade-for-trade segment for its first 10 sessions to ensure orderly trading.

With the CV arm now standing independently, analysts say the move enhances transparency, improves capital allocation, and helps Tata Motors sharpen its strategic focus in a sector that forms the backbone of India’s transport and infrastructure economy.

How TMCV Stacks Up Against Peers

The newly listed company enters the market as the segment leader, holding a 33.04% market share and selling 87,061 units in Q2FY26—a 9% year-on-year rise across the LCV, MCV, and HCV categories. However, on a year-to-date basis, sales have dipped slightly by 0.5%, with 1,66,633 units sold.

Mahindra & Mahindra follows closely with a 29.29% market share and 1.31 lakh units sold so far in FY26. Ashok Leyland reported sales of 1.01 lakh units during the same period with an 18.40% share, while Eicher Motors registered 39,130 units, holding 8.81% of the market.

From a market capitalisation standpoint, M&M leads with ₹4.65 lakh crore, followed by Eicher Motors at ₹1.88 lakh crore, Tata Motors (TMCV) at ₹1.21 lakh crore, and Ashok Leyland at ₹83,556 crore (as of November 12). Eicher Motors has delivered the strongest stock performance this year with a 42.66% YTD return, ahead of Ashok Leyland (29.28%) and M&M (24.85%). TMCV does not yet have comparable returns given its recent debut.

Q2FY26: Performance Snapshot

Tata Motors Ltd reported a net loss of ₹867 crore in Q2FY26, driven by higher raw material costs and a one-time fair value hit from equity investments. Revenue rose 6% YoY to ₹18,585 crore.

Ashok Leyland posted a stable net profit of ₹771.06 crore with 9.3% revenue growth, and declared an interim dividend of ₹1 per share. Eicher Motors’ CV division registered a 10.3% revenue rise to ₹6,106 crore, along with a profit after tax of ₹249 crore.

Management Commentary and Industry Outlook

Tata Motors’ leadership says the standalone CV structure allows the company to better capture growth opportunities through product innovation, digital services, and fleet intelligence. New launches such as the Ace Pro and Ace Gold have helped push September sales up 30% YoY. The company also holds a strong 36.1% market share as of Q1FY26.

Industry-wide, demand is being supported by the government’s capital expenditure push—₹11.21 lakh crore in the Union Budget 2025–26—and the recent GST reduction from 28% to 18%. However, rising input costs, stricter emission norms, fuel price volatility, and global supply chain challenges continue to pressure margins.

The second half of FY26 is expected to be strong, aided by festive-season momentum, improving construction activity, and the broader impact of GST 2.0 reforms.