It was on 30 July 2025, Tata Motors announced it had reached an agreement with European automaker Iveco Group to acquire its commercial vehicle, powertrain and finance business for EUR 3.8 billion. The transaction to be financed through a mix of equity and debt will complement Tata Motors’ frugal engineering and robust product portfolio with Iveco Group’s global product portfolio, technology and ecosystem.

Tata Motors expects to raise around EUR 1 billion through equity, along with monetising its stake in Tata Capital to help repay the EUR 3.8 billion bridge loan to acquire Iveco Group.

The new company will be able to drive better operating leverage by spreading its capital investments over larger volumes, generating important efficiencies and reducing the cash flow volatility inherent in the commercial vehicles sector. It will also enable the capabilities of Iveco Group’s successful powertrain business, FPT, to be further enhanced.

Explaining the rationale behind the move, P B Balaji, Group CFO, Tata Motors, stated that the commercial vehicle business is different from the passenger vehicle business.

“CV segment sees steady business; the disruption levels are slow and gradual. They are not very intense, and it takes a lot of time to build the brand presence, establish a financing arm, market products; therefore only way to grow substantially through inorganic means becomes part of the milestone,” he said.

Tata Motors has been working on splitting its passenger vehicle business and commercial vehicle business, with the CV business expected to be listed as an individual entity in October 2025.

Together with this move, the new combined entity, Balaji stated, will create the “world’s fourth largest CV maker and in touching distance of the number 2 and 3 in the above 6-tonne category.”

He revealed that the discussions with Iveco had been ongoing for the last six months, since the latter decided to spin it off its defence business.

“Tata Motors had never been financially strong enough to take such a move, with Iveco deciding to spin-off its defence business, one has to move very fast to diversify the portfolio and grow CV business,” he said.

The acquisition involves Iveco’s four business operations – Trucks, Buses, FPT Industrial (engine) and Iveco Capital (financing).

Together, the partners will not only complement product portfolios and capabilities but eventually benefit from substantially no overlap in their industrial and geographic footprints, creating a stronger, more diversified entity with a significant global presence and sales of over 540,000 units per year. Together, Iveco and the commercial vehicle business of Tata Motors will have combined revenues of EUR 22 billion split across Europe (50 percent), India (35 percent) and the Americas (15 percent) with attractive positions in emerging markets in Asia and Africa.

Unlimited Pathways 2.0

In what is described as the next frontier of growth for the combined entity, Balaji revealed that they will co-develop a joint roadmap christened ‘Unlimited Pathways 2.0’, which aims to define new technology-led synergy initiatives once the transaction closes in April 2026.

This is said to ‘lift the ambition for both companies to a very different level’, along with clearly defining cross-border synergies.

As per Balaji, the return on capital employed (ROCE) for the combined entity will stabilise at 20 percent, with room to grow earnings significantly. At present, for Tata Motors, the ROCE is around 40 percent, while for Iveco it is 14 percent.

“Together we believe we can actually generate substantial value, we can triple our revenue and quadruple some of our profitability numbers amongst the two of us to ensure that it still generates a 20 percent kind of a ROCE,” said Balaji.

Tata Motors, on its path, will benefit from access to Iveco’s advanced investments in the areas of technology, alternative energy, which the Indian CV market has not yet seen in a big way.

“The brand is complementary, therefore customer groups/cohorts which we were not addressed with Tata Motors brand, can now essentially be addressed with Iveco, that is the premium end of the market. Secondly, the frugal engineering capabilities we have in India, will certainly be of help for Iveco to optimise and bring design to value thinking. Thirdly, Iveco has been invested ahead of time, as in what India has been doing on various technologies, be it powertrain, software-defined vehicles (SDVs) and ADAS, among others. These are some of the technologies that we can adopt for the Indian market ahead of time, and at the same time bring in frugal engineering that will help Iveco in turn,” explained Girish Wagh, Executive Director, Tata Motors.

He further stated that the idea is to work together and complement each other wherever possible. “As we go ahead, we will put mechanisms and thoughts in place, and how we can synergies and govern the entities as ‘one Tata Motors commercial vehicle’.”

Adding to that, Balaji stated, “We also want to be sure that there will be specific areas for sure, where we would like to keep it as different as each other, as part of our learning from the Jaguar Land Rover experience. Iveco brand, the channel, we would want it to be absolutely independent, where there are two different markets it serves. But there are areas where they may overlap. And as we understand each other, the overlap will increase, but it is first important to understand each other, get the cultural sensitivities taped up between the two companies, and build the trust. At the end of the day, it is the excitement of winning together that is the first focus, and we will do it in a measured manner together with Iveco team. Engaging with them for the last six months, the mutual chemistry is excellent in ensuring that we co-create the agenda together. So that we can start lifting the ambition for both companies to a very different level.”

Sharing his expectations from unlocking the combined synergies, Balaji stated “A lot of people are seeing this as 2 + 2 together, if that is just going to be 4, we have a problem. I would want to see how this can translate to a 6 or a 8 or 20 if we can pull it off,” emphasising his significant expectations from the behemoth.

Existing partnerships to continue

Tata Motors and Iveco have established their brand over the years, the network, the supply chain and partnerships. Despite the announcement, there are still a lot many areas where decisions have yet to be made.

In India, Iveco, through FPT Industrial, is supplying LNG engines to Pune-based Blue Energy Motors, in which the company also has acquired a minority stake. Responding to a query on whether Tata Motors is looking to use Iveco’s LNG powertrains for its products, Balaji said that there were a lot of areas where they are still trying to figure out the future course of action.

Adding to that Wagh said, “There are possibilities for powertrain synergies with Iveco, but we have a very strong and long-lasting partnership with Cummins in India for powertrains for more than 33 years. We use their engines, especially in medium and heavy commercial vehicles and will continue to do so. In addition, we also formed a step-down JV to accelerate our efforts towards zero zero-emission solution – hydrogen ICE, hydrogen fuel cell or battery electric. We will continue to work on that. There are also products in our portfolio, where FPT Industrial has powertrains in both ICE diesel and gaseous fuels. We will certainly explore the synergies, which will improve the competitiveness of our products in these markets.  

Tata Motors also confirmed that as part of the deal, it will get access and nurture all the IPs, capabilities, and design from Iveco, including cabin partnership and fuel-cell with Hyundai.

Going forward, the partnership is expected to see Tata Motors introducing Iveco products in India and other markets where it has a strong geographical presence, while it will utilise Iveco’s ecosystem to introduce Tata Motors’ range of CVs.

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The second season of the MASSEY DYNASTAR CONTEST, organised by TAFE - Tractors and Farm Equipment Limited, one of the world’s largest tractor manufacturers and the maker of the legendary Massey Ferguson Tractors in India, was a resounding success, attracting a remarkable 16,000-plus entries from across India's 26 states and five union territories. This overwhelming response showcased the vibrant diversity of the nation's agricultural sector, with participants ranging from farmers and rural entrepreneurs to agri-students. Twelve finalists from seven states were selected to present their ideas at the Grand Finale.

A prestigious jury evaluated entries on strict criteria including innovation, feasibility and societal impact. The grand prize was awarded to Avinash Desai from Karnataka for his mobile slurry dewatering machine, winning him a brand-new MF 254 DYNASMART 2WD tractor, worth approximately INR 820,000. Prateek Agarwal from Assam secured the second prize with an 8-gm gold coin for his concept of a solar-powered energy hub, while Amrit Jot Singh from Punjab received the third prize, also an 8-gm gold coin, for his water purification unit idea.

The Jury’s Choice Award honoured Dr. Jayakumar Karuppusamy from Assam with a 50-gm silver coin for his multipurpose farm machine. In the institutional category, teams from Tamil Nadu Agricultural University and Bannari Amman Institute of Technology won for their tractor-mounted transplanter ideas, with students receiving internship opportunities.

This initiative embodies TAFE's vision of cultivating the world through meaningful engagement. Following this success, TAFE has announced the contest's return for a third season, reaffirming its commitment to empowering rural innovators.

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Schmitz Cargobull, a leading European semi-trailer manufacturer, has acquired a 27.5 percent stake in Sub Zero Insulation Technologies (SZIT), a leading producer of refrigerated and dry freight truck bodies in India.

This strategic investment marks a significant step in the German company's global expansion and its entry into India's growing cold chain logistics sector. The agreement includes an option for Schmitz Cargobull to increase its shareholding in the future.

The partnership aims to combine Schmitz Cargobull's engineering expertise with Sub Zero's market presence to deliver advanced transport solutions.

Andreas Schmitz, CEO, Schmitz Cargobull, said, “India’s cold chain sector is evolving rapidly and Sub Zero has demonstrated strong potential to lead this transformation. By combining Schmitz Cargobull’s engineering expertise with Sub Zero’s market reach, we aim to deliver high-quality, efficient transport solutions across India and beyond. This is not just about business growth; it’s about enabling infrastructure that can help reduce the 30-40 percent of perishable produce lost annually due to inadequate cold-chain facilities - losses that also contribute significantly to greenhouse gas emissions.”

Deep Khira, Founder & CEO, Sub Zero, said, “This partnership represents a pivotal moment for Sub Zero and for India’s cold chain ecosystem. With Schmitz Cargobull as our partners, we are entering a new era of quality, technology and international standards. By improving cold-chain efficiency, we can drastically cut wastage, boost farmer incomes, improve food availability and significantly lower the carbon footprint from decomposing perishables. We remain committed to our customers and our mission to deliver best-in-class transport solutions across India and emerging markets.”

Both companies are family-led businesses with a shared focus on innovation and customer-centric values. Sub Zero, founded in 2015, continues the Khira family's legacy in vehicle body building, which dates back to 1949. The company currently produces over 1,500 units annually and is a key supplier for major OEMs like Tata Motors, Mahindra and Ashok Leyland.

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Chartered Speed, a leading player in passenger bus mobility services and Pune-headquartered automaker EKA Mobility have partnered to deploy 1,135 electric buses under the Government of India’s Pradhan Mantri e-Bus Sewa Scheme.

The partners recently secured the Letter of Confirmation of Quantity (LOCQ) for 235 buses, following the earlier confirmation of 900 buses across India. This translates to a total of 1,135 e-buses to be deployed by them under the scheme. They estimate that at full scale, the e-buses will ply over 360,000 passengers daily and generate employment for over 2,500 people.

Chartered Speed is set to procure, operate and maintain the new fleet across four states – 110 buses in Madhya Pradesh, 60 in Odisha, 35 in Chhattisgarh and 30 in Meghalaya.

Sanyam Gandhi, Whole-Time Director, Chartered Speed, said, “Chartered Speed’s vision is to transform everyday travel through clean, efficient and inclusive public transport. This allocation under the PM e-Bus Sewa Scheme, along with our partnership with EKA Mobility, is a significant step in that direction. It reflects our commitment to creating reliable mobility solutions that ease commuting, support local communities, and contribute to India’s green mobility mission.”

Rohit Srivastava, Business Head & Chief Growth Officer, EKA Mobility, said, “EKA Mobility’s mission has always been to make clean, safe, and efficient mobility accessible to all. Through the PM e-Bus Sewa Scheme and our collaboration with Chartered Speed, we are proud to deploy 1,135 electric buses that will serve lakhs of citizens every day. Every bus we put on the road is a step towards reimagining India’s cities making them smarter, greener, and more people centric.

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Chennai-headquartered commercial vehicle major Ashok Leyland has reported its record performance in Q1 FY2026, with highest ever Q1 wholesales at 44,238 units and Q1 revenue of INR 87.25 billion.

Furthermore, the company also reported its highest EBITDA at INR 9.7 billion, up 6.47 percent YoY and profit after tax of INR 5.94 billion, 13 percent YoY. The company shared that it was able to grow M&HCV volumes by 2 percent, which enabled it to increase its market share from 28.9 percent to 30.7 percent in Q1 FY2026. This was despite the domestic M&HCV segment remaining flat.

Its M&HCV Bus TIV (excluding EVs) grew by 5 percent, thus further strengthening its domestic market leadership position in the MHCV bus segment. 

In the LCV segment, the company witnessed its highest-ever quarterly sales at 15,566 units, while exports at 3,011 units grew by 29 percent YoY.

Dheeraj Hinduja, Chairman, Ashok Leyland, said, “Ashok Leyland has delivered a robust Q1 performance, exceeding the expectations through effective market execution while maintaining rigorous cost management. Our electric mobility subsidiary, Switch Mobility, continues to gain good traction and has achieved positive EBITDA. We are redoubling our efforts in the international markets and Defence business. Reinforcing our product superiority and strong customer orientation, we are sharpening our focus to play a pivotal role in our industry.”

Shenu Agarwal, Managing Director & CEO, Ashok Leyland, added, “We are happy to report simultaneous increases in market share and operating margins. This reinforces our strategy to deliver profitable growth through superior products and best-in-class customer service. Our focus on growing our non-CV portfolio is also helping us deliver record performances in many quarters in a row. Our priority remains achieving mid-teen EBITDA margins in the medium term, while advancing our commitment to future-ready technologies.”

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