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Tata Motors Wins Orders for Over 5,000 Buses from State Transport Corporations Across India

Prime Highlights

  • Tata Motors secured orders for more than 5,000 buses and bus chassis from several state transport undertakings across India.
  • The large orders highlight the continued trust of government transport bodies in the company’s public mobility solutions.

Key Facts

  • The orders were placed by transport bodies, including Maharashtra State Road Transport Corporation, Gujarat State Road Transport Corporation, Kerala State Road Transport Corporation, and other state-run operators.
  • The company’s commercial vehicle business reported 17% revenue growth to ₹21,533 crore in the December quarter, with improved operating margins.

Background:

Tata Motors has secured cumulative orders for more than 5,000 buses and bus chassis from several State Transport Undertakings (STUs) across India, strengthening its position in the country’s commercial passenger vehicle segment.

The company announced on Friday that its commercial vehicle (CV) business won the contracts through a competitive e-bidding process under the government’s procurement system. Deliveries of the buses will take place in phases, based on schedules agreed upon with the respective transport corporations.

The company said the order includes several bus models, including Tata Magna, Tata Cityride, Tata Starbus, Tata Starbus Prime and the LPO series. These buses are used for different services, including city travel, long-distance routes, and intercity transport.

Anand S, Vice President and Head of Commercial Passenger Vehicle Business at Tata Motors, said the orders show the continued trust of state transport corporations in the company’s buses. He added that the company will keep supporting India’s public transport system with reliable mobility solutions.

Tata Motors also said its passenger bus portfolio ranges from 9-seater to 55-seater vehicles with different powertrain options. The company supports these buses through a nationwide network of more than 4,500 sales and service touchpoints, helping operators maintain and service their fleets easily.

In its latest financial performance, the company’s CV segment reported strong growth. Revenue for the December quarter rose 17 percent to ₹21,533 crore, compared with ₹18,478 crore in the same period last year. Profitability also improved, with EBITDA margin rising to 12.7 percent and EBIT margin increasing to 10.6 percent.

Despite the positive business developments, shares of Tata Motors were trading about 4.18 percent lower at ₹311 during Friday’s afternoon session, and the stock has declined more than 18 percent over the past month.