Tata Motors eyes top four global truck maker with Iveco deal
Tata Motors said the Iveco tie-up could lift revenue to $35 billion-$40 billion and build a top-four truck group, but the scale gap is still wide.
N Chandrasekaran told shareholders that the combined business could lift annual revenue from about $25 billion now to $35 billion to $40 billion over the next five years. Tata Motors is using its planned acquisition of Iveco Group as the lever in its bid to join the world’s four biggest commercial-vehicle makers.
The deal was announced on July 30, 2025, with Tata Motors offering 14.1 euros per share in cash for Iveco’s non-defence commercial-vehicle business, a transaction valued at about €3.8 billion, or $4.4 billion. Iveco’s defence arm is being separated and sold to Leonardo before the Tata deal closes. The European Commission approved the transaction under the EU Merger Regulation in November 2025, and the remaining approvals are still being worked through.
N Chandrasekaran told shareholders the combined group would have two home markets, India and Europe, and a wider product portfolio anchored by Iveco’s powertrain and next-generation technology. Tata expects the deal to close by the second quarter of FY27, later than an earlier timetable that slipped from the June quarter to the September quarter as approvals lagged. The financing is set to come from debt and internal cash, with no equity dilution planned, and the borrowing would be repaid from future cash flows generated by the acquired business.
Iveco employs about 36,000 people worldwide, including roughly 14,000 in Italy. Exor, Iveco’s largest shareholder, has agreed to tender its stake and support the transaction, while Tata has pledged not to close plants, cut jobs or materially restructure operations for two years after completion and to keep Iveco’s headquarters in Turin.
Its commercial-vehicle arm posted FY26 revenue of 77.4K crore, EBITDA of 10.2K crore, PBT of 8.7K crore and free cash flow of 9.2K crore. Unit sales rose 13% to 435,227, and its international business grew 53.9% in FY26. It plans to spend about 2% to 4% of annual revenue on capital expenditure, with roughly 55% of that going to future technologies.
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