Iveco deal to fuel global expansion, exports for Tata Motors' CV unit

Tata Motors on Wednesday announced a €3.8 billion ($4.4 billion) all-cash voluntary tender offer to acquire 100 per cent of the common shares of Iveco Group N.V., excluding its defence business. The acquisition, once completed, will create one of the world’s largest commercial vehicle (CV) groups with combined annual revenues of around €22 billion (over ₹2 trillion).

 

“The combination brings together complementary capabilities, global reach, and a shared strategic vision to drive long-term growth and unlock significant value,” Tata Motors said in a statement. The Iveco Group board has recommended Tata Motors’ all-cash voluntary tender offer for Iveco Group common shares and the completion of the offer is conditional on the separation of Iveco Group’s defence business, the statement noted.

 

 

For Tata Motors, whose CV division currently earns nearly 90 per cent of its ₹75,000 crore revenue from India, the acquisition represents a strategic leap into new geographies, opening the door to mature markets in Europe and Latin America (LatAm), and positioning exports as a key growth driver. Tata Motors is splitting its passenger vehicle and CV businesses this year, with each operating as a distinct entity.

 

Iveco has a presence across Europe, LatAm, and Asia-Pacific, with production facilities in Europe, China, Russia, Australia, and LatAm, and a network across 160 countries.

 

Industry experts say Iveco’s strong distribution network, market leadership in Europe’s intercity and city bus segments, and its foothold in natural gas-powered long-haul trucks could give Tata Motors a ready platform to enter mature markets where it currently lacks presence. “Exports, which are currently negligible, could become a key growth driver for Tata Motors’ CV business after acquisition,” said an industry executive.

 

The deal will also complement Tata’s product portfolio. Iveco brings leadership in natural gas-powered trucks, intercity buses, and sustainable powertrains, including electric and hydrogen technologies. Observers note that this aligns with Tata’s ongoing hydrogen truck and electric vehicle (EV) trials in India and its ambition to future-proof its CV business through alternative (alt) fuels.

 

“Access to Iveco’s markets will be a game changer for Tata Motors, especially in Europe, where Iveco enjoys strong brand equity,” said an automotive analyst. Still, analysts caution that synergy benefits may be limited. “Iveco’s technologies are additive only to a limited extent, with considerable duplication in model lineups and production capacity,” said one analyst. European acquisitions also come with legacy baggage — retirement benefits and high-cost structures that can weigh on profitability.

 

Iveco’s annual revenue of €10 billion is expected to bolster Tata Motors’ CV scale with a portfolio that includes electric buses, electric light CVs, and alt-fuel technologies. The acquisition could nearly treble Tata Motors’ CV revenues from the current ₹75,000 crore to over ₹2 trillion, experts reckon.

 

Currently, Tata Motors’ CV exports remain modest. In 2024-25, exports rose 2 per cent year-on-year, from 17,677 units in 2023-24 (FY24) to 18,164 units, according to Society of Indian Automobile Manufacturers’ data. In the first quarter of FY26, CV exports surged 68 per cent to 5,969 units, up from 3,540 units in the same quarter last year.

 

Tata Motors’ CV revenue has fluctuated in the past four years, rising from ₹52,287 crore in 2021-22 (FY22) to ₹78,791 crore in FY24 before easing to ₹75,055 crore in FY25, according to Capitaline data. Rating agency Icra projects 3–5 per cent growth for India’s CV industry in FY26 after a flat FY25.