Tata Motors plans new Ace diesel variant without DEF, targets SCV recovery

Tata Motors plans to reintroduce its Ace diesel mini-truck without SCR tech to reduce total cost of ownership, while expanding rural presence with Intra range

Tata Motors, which has been losing market share in the small-commercial-vehicle (SCV) segment, plans to roll out a new diesel version of its popular brand Ace that would reduce the total cost of ownership (TCO) for its owners.

 

Speaking to reporters, Girish Wagh, executive director, Tata Motors, said that till 2018, the diesel Ace used to constitute almost 80 per cent of the company’s volumes. “Post-BS 6 emission norms, the technology-related costs increased and the reluctance of the customer to use the diesel exhaust fluid (DEF) has suppressed that segment significantly. People went to three-wheelers (3Ws), which have lenient emission norms and the SCR (selective catalytic reduction) is not there,” he said.

 

An SCR system is one which is installed on diesel vehicles to reduce harmful nitrous oxide (NOx) emissions, and it works by injecting an automotive-grade urea or DEF through a specially designed catalyst into the exhaust stream of a diesel engine.

 

“So, first we created the Ace Pro, which actually gets the value-proposition right. Priced at ₹3.99 lakh and above, the four-wheeled mini-truck will have a four-digit monthly EMI (equated monthly instalment) and it comes in petrol, electric and bi-fuel (CNG-petrol) options,” he said, adding that the electric vehicle (EV) version is priced at least 20 per cent lower than any other four-wheeler equivalent cargo vehicle with similar range and specs. TaMo saw that e-commerce was clearly migrating towards EVs and for them this vehicle made a lot of sense.

 

But, the company has plans to bring in Ace diesel in a new avatar. “We will bring out Ace diesel without SCR this year. The benefit is that the TCO improves as you don’t have to use DEF,” Wagh said.

 

 

TaMo has been facing challenges in the SCV-Pickups segment – the volumes slipped from 508,000 units in 2023-24 (FY24) to 493,000 units in FY25. In this. the share of pickups actually grew from 65 per cent to 68 per cent. The company’s market share in the SCV-Pickups segment also fell from 31 per cent in FY24 to 28 per cent in FY25.

 

Pickups use Lean NOx Trap (LNT) technology to reduce NOx emissions – LNTs absorb and store the NOx, converting it into Nitrogen. Wagh felt that the relatively better top lines (revenues) from pickups or heavier vehicles allowed for better economics and this technology was witnessing traction.

 

Meanwhile, apart from increasing the competitiveness of its flagship Ace range, the company is trying to make inroads into the rural markets through its Intra range.

 

“We launched a few variants under the Intra range in the last one year, which is helping us to get into the rural markets. Now we are doing the brand action as well as BTL activation to show that this vehicle can perform in rural areas. We are also working on resale value and while this is not an immediate thing, we see the resale value is going up,” Wagh said.

 

Expect 20% growth in international CV biz

 

Even as the global commercial vehicle (CV) industry is yet to reach the pre-Covid levels, Tata Motors expects to have a 20 per cent growth in CV business this year. The company sees green shoots in Saarc markets like Bangladesh, Sri Lanka and Nepal, where it is among the market leaders. These three countries have gone through much economic turmoil, but green shoots were on the horizon, said Girish Wagh, executive director, Tata Motors.

 

The company plans to strengthen its presence in sub-Saharan Africa, and expand into countries where it did not have presence before the Covid-19 pandemic. In West Asia, markets like UAE and Qatar have seen good growth in buses, and Saudi Arabia has seen good growth in trucks. Wagh added that the company has recently entered North Africa — markets like Morocco and Egypt. “So, with this, we expect that we should grow very healthy, more than 20 per cent, in international business,” Wagh said, adding that the company was also exploring markets in Eastern Europe and Latin America.