Tata Motors to Launch DEF-Free Ace Diesel, Aiming for SCV Market Rebound

Tata Motors is to introduce a new diesel variant of its Ace small commercial vehicle (SCV) that does not require diesel exhaust fluid (DEF), as per news reports. This is aimed at cutting down operating costs and addressing customer reluctance towards DEF-based systems introduced under BS6 norms.

Decline in Diesel SCV Segment

Addressing reporters, Girish Wagh, executive director, Tata Motors, stated, Until 2018, diesel versions of the Ace made up nearly 80% of Tata Motors’ SCV volumes. However, the adoption of Selective Catalytic Reduction (SCR) technology, used to reduce nitrogen oxide emissions, added to vehicle costs and required the regular use of DEF. This led many customers to switch to 3-wheelers, which have less stringent emission rules.

The company had previously launched the Ace Pro range starting at ₹3.99 lakh. It is available in petrol, bi-fuel (CNG-petrol), and electric options. The electric variant is priced lower than most comparable four-wheeler cargo EVs in the market. Tata Motors observed that the electric Ace found strong demand in the e-commerce segment.

Market Share Drop in SCV-Pickups

In FY25, the SCV-pickups segment saw a decline in total volumes from 5.08 lakh units to 4.93 lakh units. Within this, pickups increased their share from 65% to 68%. Tata Motors’ own market share in this segment dropped from 31% in FY24 to 28% in FY25. Pickups typically use Lean NOx Trap (LNT) systems instead of SCR.

Rural Strategy with Intra

To expand its reach in rural areas, Tata Motors introduced several new models under its Intra range over the past year. The company is also running brand campaigns and local activations to build familiarity and improve the vehicle’s resale perception.

Tata Motors expects 20% growth in its international commercial vehicle business. It is focusing on countries like Bangladesh, Sri Lanka, and Nepal, and expanding into new territories in North and Sub-Saharan Africa, West Asia, and Eastern Europe.

Read more: How Tata Motors Demerger Could Impact Its Fundamentals!

Tata Motors Share Price Performance 

As of 10:51 AM on June 26, Tata Motors share price was trading at ₹676.40, up ₹1.90 (0.28%) for the day, but down 8.69% over the past 6 months and 28.94% over the past year.

Conclusion

Tata Motors is reworking its SCV portfolio with a DEF-free diesel Ace to reduce costs and meet market demand. Alongside rural expansion and international growth plans, the company is looking to recover volumes and stabilise its position in a competitive segment.

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