The Tata Group formed TAFI in 1984. TAFI was created to provide hire purchase services. TAFI is a leader in the truck finance business. TAFI has capitalised on the strong brand name of the Tata and the TELCO dealer's infrastructure. Traditionally the company focussed on commercial vehicle financing, but over the period it has started car financing, construction equipment financing, short term lending, leasing, etc. TAFI's subsidiaries are engaged in primary dealership and investments and broking in the equity and debt market.

TAFI, is a leading Non-Banking Finance Company (NBFC) from the Tata Group. It has initiated steps to convert the company into a financial supermarket. TAFI had a dominance in the area of commercial vehicle financing and also in the area of car finance and corporate leasing. The company till now has primarily serviced the industrial sector. TAFI has a strong branch network of 75 branches across the country.

TAFI has been dominant in meeting the financial needs of the industrial sector. The company has concentrated in the area of commercial vehicle and car financing. The company has an added advantage of financing its group company TELCO's vehicles. Commercial vehicle financing amounts to 70% of total disbursements, while car finance amounts to 17% and leasing contributes 8% of total disbursements of the company.

TAFI has plans of entering into power generation through non-conventional renewable energy sources. This unrelated diversification is being done to avail of the incentives offered by the Maharashtra government for wind generation of power. The company has planned to set up a 15-mw wind generated power plant in two phases of 7.5 mw each in Maharashtra.