Tata Motors-Iveco will focus on building a global CV business: N Chandrasekaran

Mumbai: Tata Motors and Iveco Group are aiming to build a global commercial vehicle business focused on growth rather than consolidation, N Chandrasekaran, chairman, Tata Sons, said on Tuesday, outlining the rationale behind the transatlantic deal.

The $4.32 billion acquisition of the Italian truck and bus maker marked the biggest overseas deal for Tata Motors in the CV segment and the largest by a Tata Group automotive entity since the 2008 acquisition of Jaguar Land Rover from Ford Motor Company for $2.3 billion. "This should not be seen as a consolidation effort," said Chandrasekaran, also the chairman of Tata Motors and Iveco Group, at a press conference in Turin. "This is about the future."

Also read: Indian auto's real test lies ahead after firecracker start to festive season

Announced July 30, 2025, the Iveco deal got completed on October 30, 2026, with Tata Motors announcing settlement of its tender offer, securing an 89.42% stake in the CV maker and making it an indirect unit. Remaining steps towards acquiring the balance stake and delisting Iveco are underway.

The combined entity will have annual revenues of about $24 billion and sales volume of nearly 600,000 vehicles, with a presence in more than 130 countries, over 73,000 employees and 9,300 sales and service touchpoints.

Girish Wagh, managing director and chief executive of Tata Motors said the companies' complementary geographical presence offered significant opportunities. While Tata Motors brings leadership in India and a growing presence in Asia, the Middle East and Africa, Iveco has established operations across Europe and Latin America, he said. "The opportunity is not to make one organisation more like the other," he said. "It is to bring out the best in both."

Also read: Tata Projects wins contract to build global automaker's plant in Maharashtra

Chandrasekaran expects volumes and revenues in the combined enterprise to grow significantly in the coming five years, alongside an improvement in margins. He didn't provide specific targets, saying the management teams would outline the business plan.

A key area of collaboration will be bringing Iveco vehicles to India and leveraging Tata Motors' platforms for international markets. Chandrasekaran said some Iveco products identified as relevant to India would initially be introduced through semi-knocked-down manufacturing and subsequently localised.

"It is not simply about greater scale or wider footprint," said Wagh. "It is about the new possibilities that this footprint creates, giving us a significantly greater runway for growth across markets, products and technologies."

He also pointed to opportunities in components and batteries, while Tata Motors' platforms could be taken to other markets through Iveco. On powertrains, Chandrasekaran said Iveco's FPT engine business could expand into industrial applications across India, Africa and Asia, leveraging Tata Motors' distribution network. Tata Motors will, however, continue its more than three-decade-old joint venture in India with Cummins for heavy commercial vehicle engines.

Tata Motors and Iveco will also collaborate on electric and hydrogen technologies, connected vehicles, software-led platforms and decarbonisation. Post acquisition, Iveco will retain its headquarters in Turin, Chandrasekaran said, reiterating the group's commitment to its existing industrial footprint.

Wagh said the combination would bring together the companies' strengths in engineering, frugal product development and technology.