India’s Tata Motors warns of near-term cost pressures; quarterly profit surges

[BENGALURU] India’s Tata Motors flagged near-term cost pressures due to the ongoing Iran war, even as it reported a near 70 per cent jump in fourth-quarter profit on Wednesday (May 13).

The country’s top commercial vehicle-maker reported a profit of 24.1 billion rupees (S$320.4 million) for the quarter ended Mar 31, up from 14.2 billion rupees the year before.

Sales of commercial vehicles got a boost after India, in September 2025, cut taxes on such vehicles to 18 per cent from 28 per cent to boost consumption at home, a key market for the carmaker.

This also helped the Ace pickup truck-maker to brush off the impact of soaring raw material costs due to the war.

While near-term headwinds, including higher commodity costs, are expected to persist, the company said it remains confident of navigating these challenges through operational efficiencies, disciplined pricing and proactive supply-chain management.

Commercial vehicles are used for a wide range of activities, from construction and freight to public transport and mining. A pickup in construction activity also boosted the demand for these vehicles.

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Overall sales for the Ace pickup truck-maker grew 25 per cent in the period, with domestic sales jumping 26 per cent. This boosted overall revenue to 244.5 billion rupees from 200 billion rupees the year before. REUTERS