VST Motors has closed 2025 on a positive note, registering a stronger performance compared to the previous year, driven by improved market sentiment and a sharper alignment with evolving customer needs. The company witnessed a significant uptick in demand post the GST reduction in September, particularly in the commercial vehicle space, where growth in the second half of the year surged by 25–30 percent over the first half. This momentum reflects not just favourable macro conditions, but also VST Motors’ ability to respond quickly to shifts in customer expectations and application requirements.
Speaking on the year gone by, Mr. V S Arun, Managing Director, VST Motors, noted, “Our overall performance in 2025 has been better than last year, with a clear improvement in the commercial vehicle segment after the GST reduction. The second half saw strong traction, and this has helped us close the year on a solid growth trajectory.”
Importantly, this growth was not restricted to a single category. Instead, it was broad-based, with contributions coming from small commercial vehicles and pickups, intermediate and medium commercial vehicles, heavy commercial vehicles, and passenger carriers. This balanced performance has helped the company maintain stability while also building momentum across segments. Mr. Arun added, “The growth has come from almost all segments, including SCV, ILMCV, HCV and passenger vehicles. This diversified demand has been crucial in ensuring both stability and consistent growth across our portfolio.”
Evolving Customer Mindset Driving Smarter Buying Decisions
One of the most notable shifts observed by VST Motors in recent years has been the transformation in customer buying behaviour. Buyers are no longer driven primarily by brand perception; instead, they are making more informed decisions based on performance, return on investment, and total cost of ownership.
This shift is particularly visible among fleet operators and small business owners, who are increasingly evaluating vehicles as business assets rather than aspirational purchases. Faster decision-making cycles, combined with a clearer focus on application suitability, are also reshaping how dealerships engage with customers.
Highlighting this transition, Mr. Arun said, “Customers have moved away from being brand conscious to focusing on performance, ROI and total cost of ownership. This is a significant shift, and it is pushing us to be more consultative in our approach.”
For VST Motors, this change has meant strengthening its advisory role, ensuring that customers are guided towards the right product for their specific application, rather than simply pushing volume-driven sales.
Application-Led Demand Reshaping the Product Mix
The growing emphasis on application-specific vehicles has become a defining trend in 2025. Demand is increasingly segmented, with customers seeking vehicles tailored to precise use cases, whether it is last-mile delivery, construction, haulage, or passenger transport.
In the small commercial vehicle and pickup segment, models such as ACE LNT and Intra have seen strong demand, particularly in urban and semi-urban logistics. In the heavy commercial vehicle space, 35-tonne tippers and 48-tonne haulage trucks have gained traction, reflecting increased activity in infrastructure and long-haul transport.
In the ILMCV category, 12-tonne haulage and tipper applications, including models like 612, 712, 912 and 1112, continue to find steady demand. On the passenger side, products such as the 12+1 maxi cab, school Magic, and Omni bus are witnessing consistent interest across institutional and rural markets. Mr. Arun explained, “There is a strong shift towards application-based demand across segments. Customers are very clear about their requirements, and this is influencing how we align our product mix and sales strategy.”
To address this, VST Motors has strengthened its geographical alignment and significantly expanded its field force. The company has added more feet on the street, ensuring deeper market penetration and closer customer engagement. This team operates as a single point of contact, simplifying the buying and ownership experience for customers. Mr. Arun emphasised, “We have ensured that our trained sales force is aligned geographically to engage with all customer segments effectively. Our teams act as a single point of contact, addressing end-to-end customer requirements.”
Building Service Strength and Technical Capability
As vehicle technologies evolve and portfolios expand to include more advanced platforms, the role of service infrastructure and technician capability has become increasingly critical. VST Motors has taken several steps to strengthen its aftersales ecosystem, ensuring it remains future-ready.
A key initiative has been the deployment of Mobile Service Workshops, enabling doorstep service for fleet operators. Currently, 15 such units are operational across the network, significantly improving service accessibility and reducing vehicle downtime.
In addition, the company has introduced container workshops in regions with high fleet concentration, allowing it to bring service capabilities closer to customers. Four such container workshops are already in place, complementing eight full-fledged workshops across the network. Mr. Arun highlighted, “We have focused heavily on improving service reach through mobile workshops and container-based facilities. This ensures that we are present wherever our customers operate, which is critical for fleet efficiency.”
The company has also invested in expanding its physical infrastructure, adding three new 3S facilities in Hosur, Villupuram and Salem over the past two years, with another facility planned in Pondicherry. Alongside infrastructure, continuous training and skill development remain a priority.
Technician capability is being enhanced through regular training programs certified by Tata Motors Limited, with over 60 percent of technicians now classified under the GOLD category, indicating a high level of technical expertise. Mr. Arun stated, “Regular training and certification are key to maintaining service quality. Today, more than 60 percent of our technicians are GOLD certified, which reflects our focus on capability building.”
Clear Focus on Growth, Capability and Customer Engagement
Looking ahead to 2026, VST Motors remains optimistic about demand and customer sentiment. The company is targeting a growth of 15–20 percent over 2025, supported by continued infrastructure activity, replacement demand, and stable economic conditions.
However, the focus is not just on volumes. The next phase of growth will be driven by strengthening internal capabilities and enhancing customer engagement. VST Motors aims to build a more agile and skilled workforce while also ensuring round-the-clock support for its customers. Mr. Arun shared, “We are looking at a 15–20 percent growth in 2026. Our key priorities will be capability building for our team and deeper customer engagement through 24/7 service support.”
This approach underlines a broader shift within the organisation, where growth is being pursued alongside long-term value creation. By investing in people, infrastructure and service excellence, VST Motors is positioning itself to remain relevant in an increasingly competitive and customer-driven market.
As the commercial vehicle industry continues to evolve, VST Motors’ ability to adapt to changing customer expectations, strengthen its service backbone, and maintain a balanced portfolio will be key to sustaining its growth momentum in the years ahead.