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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Gulf Oil Lubricants India has established strategic alliances with three construction equipment manufacturers – ACE (Action Construction Equipment), Ammann India and XCMG. These agreements are intended to expand the company’s presence in the infrastructure segment by providing equipment-specific lubricants for the Indian market.

As part of the collaboration with ACE, Gulf has added new products to the ACE Genuine Oil range, covering machinery such as cranes, backhoe loaders, motor graders and tractors. For Ammann India, which holds a 60 percent market share in asphalt mixing plants, Gulf will serve as the official partner for its entire equipment range. This includes the development of formulations for future machinery. Additionally, Gulf will launch branded lubricants for XCMG to support its range of construction equipment within India.

Alongside these alliances, Gulf has introduced a range of specialised products including fire-resistant hydraulic oil, zinc-free hydraulic oil and CEV V diesel engine oil. These formulations are engineered to meet the requirements of new-generation equipment while improving uptime and reducing the total cost of ownership for contractors.

The company currently manages over 50 OEM associations across the automotive, industrial, and construction sectors. These partnerships are a component of Gulf’s strategy to provide technical services and product selection tailored to Indian operating environments.

Ravi Chawla, Managing Director & CEO, Gulf Oil Lubricants India, said, “Infrastructure has been a strategic focus area for Gulf for over 15 years, and these partnerships mark a significant step forward in strengthening our presence in this growing sector. By working closely with leading OEMs like ACE, Ammann, and XCMG, among others, we are able to deliver application-specific, future-ready lubricant solutions for new generation equipments that help customers improve equipment reliability, reduce downtime, and optimise total cost of ownership. We firmly believe that long-term value is built through strong, enduring partnerships.”

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German commercial vehicle major MAN Truck & Bus has reached an agreement with employee representatives and the IG Metall union on its MAN2030+ programme. The initiative is designed to reduce costs by approximately EUR 900 million by 2028 while funding investments of almost EUR 1 billion in the company’s German locations by 2030.

The programme includes the development of vehicle generations based on the TRATON Modular System (TMS). Production and R&D investments will be made in Germany and Eastern Europe, where the group plans to establish a battery factory to support the transition to electric heavy-goods vehicles and buses.

The agreement secures the jobs of employees at MAN Truck & Bus in Germany until at least 2035, with a potential extension to 2040 based on sales and earnings performance. All German production sites will be retained. The company plans to adjust its workforce by 2,300 jobs over the next decade through natural fluctuation and demographic trends, avoiding redundancies or severance schemes.

Alexander Vlaskamp, CEO, MAN, said, “Following intensive negotiations, we have now reached agreement with our employee representatives on the implementation of key cornerstones of the MAN2030+ program. The plan secures MAN’s competitiveness and guarantees our customers a broad product portfolio as a full liner, which forms the basis for the company’s future success. This will enable us to secure the jobs of our current employees also in the future. With our continued high level of investment in Germany, we are fulfilling our industrial policy responsibilities. We will now consistently implement the long-term MAN2030+ program in order to counteract intensifying competition, changing market conditions and major regulatory risks at an early stage."

The EUR 900 million cost reduction will be achieved through savings in material and overhead costs, as well as sales performance improvements. The company has ruled out wage cuts and committed to continuing profit-sharing payments and above-tariff benefits.

Karina Schnur, Chairwoman of the General Works Council, MAN Truck & Bus, said, “The discussions were not easy, but they were always respectful and constructive, and from the perspective of co-determination and IG Metall, they have now resulted in the best possible compromise for our employees and the company. The agreement sends a very strong signal regarding the security, stability, and future prospects of our employees. With this agreement, we are securing the jobs of our colleagues at MAN until at least the end of 2035. And we are doing so without interfering with collectively agreed benefits. In addition, we were able to agree on profit sharing for employees and the payment of benefits above the collective agreement level – which means that MAN will remain an attractive company for future generations. Furthermore, we are securing the long-term preservation of our German locations. At the same time, we are creating the freedom to continue investing significantly in our German locations and the future of MAN.”

The programme also prioritises vocational training, with MAN committing to hire trainees amounting to at least 2 percent of the permanent workforce annually. By the mid-2030s, the company expects to employ approximately 13,000 staff across its German operations.

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In a strategic commitment to cultivating advanced technical expertise in South India, Eicher (VE Commercial Vehicles Limited) has established a long-term Regional Competency Development Centre at VNR Vignana Jyothi Institute of Engineering & Technology (VNR VJIET) in Hyderabad. This significant investment underscores Eicher's dedication to fostering industry-ready talent and enhancing the practical skills of its own workforce and network. The centre, inaugurated for an initial 10-year term, represents a core component of Eicher's vision for collaborative innovation and sustainable skill development within the automotive sector.

The newly inaugurated facility is equipped with a comprehensive range of operational vehicles, including diesel and electric models, alongside specialised diagnostic equipment and cut models of vital automotive systems. This infrastructure is designed to provide immersive, hands-on learning for Eicher employees and dealer partners from the Telangana and Andhra Pradesh regions. Furthermore, it creates a vital bridge to academia, offering students and faculty from key engineering disciplines direct exposure to current industry technologies and real-world automotive systems within their academic environment.

This initiative is fundamentally driven by Eicher’s objective to support sustained knowledge advancement and create a robust pipeline of skilled professionals. By enabling structured training on modern vehicle technologies, the partnership actively contributes to shaping the future of the automotive industry. It reflects Eicher's proactive approach to integrating industry practice with engineering education, thereby strengthening the ecosystem that supplies the next generation of engineers and technicians.

D Suresh Babu Garu, President, Vignana Jyothi, said, “Being selected by a global automotive leader such as Volvo–Eicher to host a Regional Competency Development Centre is a strong validation of VNR VJIET’s focus on industry-aligned education. This collaboration strengthens our commitment to providing students with the best facilities, real-world exposure and future-ready skills that meet national and global standards.”

Sumit Diwan, National Head – Customer Care, VE Commercial Vehicles Limited, said, “This Centre reflects our long-term approach to capability building and talent development. By investing in advanced infrastructure at VNR VJIET and training students alongside our workforce, we are creating a strong pipeline of skilled engineers equipped for evolving automotive and electric mobility technologies. We plan on hiring students from Automobile Engineering (AE) department and encourage greater participation of female students in the recruitment process.”

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BillionElectric Mobility (BillionE) has raised USD 25 million in a growth capital round consisting of equity and debt. The funding was provided by a consortium of family offices, ultra-high-net-worth individuals and financial institutions, including the State Bank of India (SBI).

The capital is intended to transition the company from deployments to commercial operations in electric freight. A portion of the funds will support the rollout of 500 electric trucks during the FY2026-27.

BillionE Mobility currently maintains a pipeline of over 1,500 electric trucks planned for the next three years to meet demand from industrial customers.

The fleet will serve logistics for sectors including cement, automotive, metals, and e-commerce. These industries are targeted due to predictable routes and high utilisation levels, which facilitate the transition to electric vehicles.

BillionE Mobility is executing a strategy across freight corridors. These routes are being electrified by CHARGE ZONE, an affiliated company providing the charging network for the fleet. The integration aims to deliver operational efficiencies and reductions in emissions across industrial clusters.

Sanjeev Kulkarni, CEO and Co-Founder, BillionE Mobility, said, “This fundraise comes at a defining moment for electric commercial mobility in India. We are moving beyond pilots to scaled, real-world deployments where execution, reliability, and economics matter most. The capital will allow us to accelerate fleet expansion, strengthen operational readiness, and deepen partnerships with customers committed to decarbonising their logistics. Our vision is to make electric trucking a mainstream, dependable, and commercially viable choice for India’s freight ecosystem.”

Kartikey Hariyani, Founder and Chief Platform Architect of BillionE Platform, added, “I am personally indebted and grateful to our existing and new shareholders backing our vision of an Energy Transition platform enabled by electric mobility in commercial segments. Currently we are on a growth path of 120 percent on YoY basis and would like to maintain this momentum in coming months and years. Fortunately, EV trucking has achieved the total cost of ownership (TCO) at par with diesel on specific routes and use cases, especially 19T and 55T category, and this is indeed a huge boost.”

The company intends to use the investment to capture a share of the commercial vehicle market while lowering carbon intensity in freight logistics.

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