Commercial Vehicle recovery key to Tata Motors re-rating

Peers like Ashok Leyland get higher valuation; they have gained market share at Tata Motors' expense

Tata Motors has reported another tepid show, for the month of June. After having lost about 570 basis points in market share over three years, it reported a two per cent year-on-year decline in commercial vehicle (CV) sales.

Closest peer Ashok Leyland reported an 11 per cent spurt for the same period. Barring the under-2 tonne mini truck segment, it has lost significant market share in the nine sub-segments that make up the light, medium and heavy CV sector.

From dominating almost all categories, it ceded market leadership in the 7.5-12 tonne segment to Volvo Eicher Commercial Vehicles, in the