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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Tata Motors, one of India’s largest commercial vehicle manufacturers, has launched the all-new Intra V40 small commercial vehicle (SCV).

Engineered for high-load last-mile applications, the Intra V40 integrates a CNG and petrol bi-fuel powertrain designed to reduce operating costs and provide fuel flexibility across diverse transport routes.

The Intra V40 is built upon a hydroformed chassis to maximise structural strength, stability and vehicle refinement under heavy loading conditions. It features a best-in-class payload capacity of 1,525 kg alongside a 2,960 mm (9.7 ft) long load body to maximise volumetric cargo capacity.

It is powered by a 1.2-litre engine that generates 58 bhp of maximum power and 106 Nm of maximum torque. The SCV comes with a 110-litre CNG tank for extended operational range, paired with a bi-fuel architecture to ensure continuous operation across varying fuel availability zones.

The Intra V40 features a modern walk-through cabin, car-like driving dynamics and front disc brakes to enhance driver comfort and vehicle control during extended operating shifts.

The addition of the Intra V40 establishes a comprehensive bi-fuel and electric product matrix for Tata Motors in the SCV and pickup categories. The company’s alternate fuel options now span multiple payload points across both bi-fuel/CNG range – Ace Pro Bi-fuel, Ace CNG 2.0, Intra V20 Gold and all-new Intra V40. And the electric vehicle range consists of Ace Pro EV, Ace EV 1000 and Intra EV Pickup.

To support fleet operators, the Intra V40 comes integrated with Tata Motors’ standard digital and service ecosystem. This includes Sampoorna Seva 2.0 for end-to-end vehicle lifecycle support and the Fleet Edge telematics platform, which provides real-time operational insights, predictive maintenance tracking, and fleet uptime optimisation.

Pinaki Haldar, Vice-President & Business Head – SCVPU, Tata Motors, said, “The shift towards alternate fuels in last-mile cargo transport is accelerating, driven by the need for lower operating costs and greater flexibility. Tata Motors is at the forefront of this transition, with a clear focus on building the strongest and most comprehensive alternate fuel portfolio in the small CV and pickup segment. With the all-new Intra V40, we further strengthen our bi-fuel range and consolidate our leadership in alternate fuel mobility, while our expanding electric portfolio supports a calibrated transition towards greener last-mile transportation.”

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Piaggio Vehicles (PVPL), a wholly owned subsidiary of Italy's Piaggio Group, has signed a Memorandum of Understanding (MoU) with the State Bank of India (SBI) Lucknow circle. The strategic partnership is designed to leverage the Uttar Pradesh Government’s CM Yuva Yojna, a flagship initiative targeting employment and self-reliance for 150,000 youth across the state through small business ownership.

The agreement was signed by Amit Sagar, Executive Vice-President for CV Domestic Business and Retail Finance at PVPL and Vibhash Kumar, Deputy General Manager at SBI.

Under the collaboration, SBI’s network of over 1,600 branches across central and eastern Uttar Pradesh will provide retail financing solutions for Piaggio’s entire three-wheeler portfolio, encompassing both Internal Combustion Engine (ICE) and Electric Vehicle (EV) platforms.

The credit structure, operating under the combined guidelines of the state-level CM Yuva Yojna and federal Mudra schemes, targets eligible youth entrepreneurs aged 25–40 years. The partnership introduces financial terms to lower the total cost of ownership:

• Interest Structure: zero percent interest loans enabled by a 100 percent government interest subsidy.
• Loan-to-Value Ratio: Funding coverage spanning 85 percent to 90 percent of the total vehicle cost.
• Repayment Profile: A fixed four-year repayment tenure with no external guarantor requirements.
• Capital Incentives: Full refund of the initial margin money upon successful completion of the loan repayment cycle.

To streamline the onboarding process, Piaggio India will set up dedicated CM Yuva Help Centres across its authorised dealership network in Uttar Pradesh. These walk-in centres are designed to offer application guidance, documentation verification, and direct financing coordination within the showrooms.

Amit Sagar, said, “India’s mobility landscape is evolving rapidly. From small entrepreneurs to fleet operators, a new class of owners is emerging, and they need financing that understands their realities. Through this partnership, Piaggio India and State Bank of India are bringing together the strength, trust, and reach of two respected institutions to make vehicle ownership simpler, faster, and more accessible. By leveraging the Uttar Pradesh Government’s CM Yuva Yojna which offers eligible young entrepreneurs 0% interest free financing, government-backed subsidies, and simplified access to business ownership; we are creating meaningful opportunities for self-employment and enterprise development at scale. This initiative goes beyond vehicle financing; it is about enabling aspirations, fostering entrepreneurship, and contributing directly to employment generation for the youth of Uttar Pradesh. Piaggio India remains committed to supporting inclusive economic progress through practical, sustainable, and accessible mobility solutions.”

Vibhash Kumar, added, “This collaboration combines SBI’s trusted financial capabilities and extensive network with Piaggio’s established leadership in the three-wheeler segment to create meaningful livelihood opportunities for aspiring entrepreneurs across Uttar Pradesh. Through CM Yuva Yojna, we are committed to supporting youth-led enterprise by making affordable financing widely accessible, thereby strengthening self-employment, last-mile connectivity and long-term economic development.”

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Volvo Trucks India has introduced the Volvo FMX Edge, an off-road dump truck configured for heavy-duty mining operations. The vehicle was unveiled at the company’s manufacturing facility in Hoskote, Bengaluru.

The development of the truck follows the deployment of the company's FMX500 8x4 platform, which has more than 3,000 units operating across Indian mine sites. The FMX Edge has been designed to align with changing structural trends in the domestic mining market, such as the deployment of higher-capacity excavators and the demand for predictable material handling cycle times.

The FMX Edge features a 31.2 cubic metre SAE heap body capacity and a 2.8-metre-wide body configuration. This design is engineered to support material loading compatibility with high-volume industrial shovels and to manage overburden movement. The vehicle incorporates electronic stability control and vehicle tracking mechanisms intended to minimise operational downtime and maintain fuel efficiency during full-load duty cycles.

The truck rollout was followed by an application-led demonstration session at the Volvo CE Customer Centre Ground. The presentation was conducted jointly by Volvo Trucks and Volvo Construction Equipment to showcase integrated machinery solutions for bulk material handling and extraction processes.

Per-Erik Lindström, Executive Vice-President, Volvo Trucks International, said, “India is a cornerstone for Volvo Group’s future and an increasingly important market for Volvo Trucks. The launch of Volvo FMX Edge reflects our commitment to Indian customers and to solutions designed around real operating needs. Built on Volvo’s global expertise and shaped by Indian mining requirements, the Volvo FMX Edge is a strong example of our focus on customer success, sustainable progress and long-term growth.”

B Srinivas, Managing Director and CEO, VE Commercial Vehicles, said, “Volvo Trucks has earned the trust of Indian mining customers over nearly three decades by delivering solutions that perform in real operating conditions. The Volvo FMX Edge is a natural evolution of this journey. It is engineered around customer outcomes like productivity, safety, uptime, efficiency and lifecycle value. With FMX Edge, we reaffirm our commitment to supporting India’s mining sector with solutions built for confidence and long-term partnership.”

B Dinakar, Business Head of Volvo Trucks India, added, “The Volvo FMX Edge has been developed with a clear purpose – to help mining customers achieve better outcomes every day. It is not just about capacity; it is about confidence, predictability, safety and lifecycle value. Shaped by inputs from mine sites, project teams, maintenance teams, operators and drivers, the Volvo FMX Edge represents Volvo Trucks’ response to the needs of modern mining operations.”

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Ashok Leyland, one of the leading commercial vehicle manufacturers, has secured an order to supply 715 vehicles from surface transportation company VRL Logistics.

The contract involves the supply of AVTR 3120 haulage trucks, BOSS 1615 trucks and Oyster staff buses to update and expand the logistics provider's fleet.

As part of the understanding, Ashok Leyland has handed over the first batch of 300 trucks, with the remaining 415 vehicles scheduled for deployment before the end of the year.

The vehicles are equipped with tracking technologies and electronic diagnostic features intended to decrease maintenance downtime, prevent unscheduled stoppages and manage fleet operating costs. Over the long term, the vehicles will support VRL Logistics' regional cargo operations and employee transit requirements across India.

Anand Sankeshwar, Managing Director, VRL Logistics, said, “We have absolute confidence in the quality, reliability, and performance of Ashok Leyland trucks. Their strong after-sales support enables uninterrupted operations, while the rapidly expanding service network gives us a clear operational advantage. The fresh order of 715 vehicles marks a strategic deepening of our partnership to drive higher logistics efficiency. Backed by Ashok Leyland’s relentless focus on innovation and our forward-looking transport strategy, we are confident of sustained success on the road ahead.”

Madhavi Deshmukh, National Sales Head of MHCV, Ashok Leyland, added, “We are delighted to strengthen our long-standing partnership with VRL Logistics. Over the years, VRL has worked closely with us in developing new products and features tailored to the emerging needs of customers in the logistics industry. This order win is a testament to the trust and confidence VRL Logistics have in Ashok Leyland’s technology and performance and it reinforces our dedication to creating efficient and technologically advanced products that exceed customers’ expectations. Our focus continues to be on developing advanced, safe, and efficient mobility solutions that meet the evolving needs of our customers.”

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