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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Daimler India Commercial Vehicles (DICV) has announced that Satyakam Arya, its Managing Director and CEO, has been designated as President and Chief Executive Officer of Hino Motors. The appointment is planned to come into effect from 1 April 2026.

In the new strategic position, Arya will move to Tokyo, Japan to manage Hino Motors’ global operations and transformation. This move marks a significant leadership decision for the planned integration of Daimler Truck and Toyota Motor Corporation’s commercial vehicle subsidiaries, Mitsubishi Fuso and Hino Motors.

Achim Puchert, Member of the Board of Management of Daimler Truck Holding, responsible for Mercedes-Benz Trucks and BharatBenz, said, "Satyakam has been an outstanding leader during his time with us, demonstrating exceptional expertise in commercial vehicle operations and a deep commitment to customer success. His strategic acumen and proven ability to drive transformation position him perfectly for this new leadership role. We wish him all the best in his new role and in the years ahead."

Under Arya’s leadership, DICV is said to have achieved record profitability growth across its truck and bus portfolio while doubling its customer base. The company’s dealership network expanded from 182 to over 385 locations nationwide.

On sustainability, DICV became India's first commercial vehicle manufacturer to switch to 100 percent renewable energy. The company also secured the country's first IGBC Green Factory Building V2 certification. DICV led industry innovation by introducing EU safety standard ECE R29-03 cabin compliance, launching products like TorqShift (AMT) tippers and the HX Series, and navigating a seamless BS VI OBD2 transition.

"India's commercial vehicle industry is entering a transformative decade. With infrastructure investments accelerating and the push toward sustainable mobility gaining momentum, the fundamentals for growth have never been stronger. DICV has built a solid foundation, exceptional leadership, and the momentum to capitalise on these opportunities. I'm confident the team will continue to reach new heights," said Arya.

"Leading Hino Motors is both an honour and an opportunity. I'm excited to contribute to this integration while building on Hino's rich 80-year heritage and creating value for customers across global markets," he added.

Succession planning for Daimler India Commercial Vehicles operations is currently underway, with details to follow in the coming weeks. The appointment reflects the importance of the planned Mitsubishi Fuso – Hino Motors integration. Arya will return to Japan, where he previously spent four years with Daimler Truck Asia, bringing transformation expertise to his new leadership role.

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Ashok Leyland, one of India’s leading commercial vehicle manufacturers, has signed a Memorandum of Understanding (MoU) with Punjab National Bank (PNB) to provide competitive dealer finance options for its dealers of Medium and Heavy Commercial Vehicles (M&HCVs).

As per the understanding, Punjab National Bank will offer customised financial products to Ashok Leyland dealers to support their working capital and inventory funding needs. The initiative aims to strengthen dealerships by providing easy and flexible access to credit.

The MoU was signed by K M Balaji, Chief Financial Officer, Ashok Leyland and Amitabh Rai, General Manager, Punjab National Bank, in the presence of senior officials from both organisations.

Balaji said, “Ashok Leyland is pleased to partner with Punjab National Bank to offer enhanced financial support to our dealer partners. This collaboration will provide comprehensive financing solutions with flexible and convenient options, helping our dealers manage their business more efficiently. Leveraging PNB’s strong network across the country and competitive pricing, this initiative will further strengthen our reach and enable sustained growth for our dealer ecosystem.”

Madhavi Deshmukh, National Sales Head, Ashok Leyland, said, “This partnership with PNB will make financing more convenient for our dealers, ensuring smooth business operations and better customer service. We look forward to working closely with the bank to create value for our dealer partners.”

Rai added, “We are extremely happy to partner with Ashok Leyland. Through our varied financial solutions, our goal is to offer convenient and complete financing choices to the dealers. We believe that this partnership will meet the business needs of both organizations and create a strong positive impact.”

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Chennai-based commercial vehicle major Ashok Leyland has released its wholesales of 17,820 units for October 2025, reporting a 16 percent rise in total wholesales compared to 15,310 units for the same month last year.

Total domestic sales grew by 16 percent, reaching 16,314 units for the month, compared to 14,067 units in October 2024. This includes Medium and Heavy Commercial Vehicles sales clocking 14 percent growth to 9,611 units. Light Commercial Vehicles (LCV) sales increased by 19 percent YoY, from 5,630 units to 6,703 units.

With this, cumulative wholesales for YTD FY2026 has grown by 6 percent reaching 111,174 units compared to 104,827 units last year.

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Scania Commercial Vehicles India has appointed GMMCO, part of the CKA Birla Group, as its new authorised dealer partner for Northern, Eastern and Central India. This marks a major milestone in Scania's renewed India growth strategy, shifting the company from a direct sales model to a fully dealer-driven ecosystem.

As per the understanding, GMMCO will be responsible for sales and service support for projects across its designated regions. This arrangement complements the existing partnership with PPS Motors, which continues to represent Scania in the Southern and Western territories, ensuring seamless national coverage.

Under the new model, Scania will concentrate on product planning, innovation and lead generation, while its dealers will manage sales, service, aftermarket operations and inventory independently.

Silvio Munhoz, Managing Director, Scania Commercial Vehicles India, said, “The appointment of GMMCO marks an important step in Scania’s India growth journey. GMMCO’s strong industry presence, wide service network and customer-first philosophy make them an ideal partner as we expand into new markets and business areas. This partnership reinforces our long-term vision for India and lays a solid foundation for our next phase of growth, driven by the Scania Super range and our focus on sustainable transport solutions.”

Scania aims to accelerate its global strategy of delivering complete solutions rather than just products. This solution-based approach includes application-specific product selection, tailored service packages and customised financial solutions.

Chandrashekar V, Managing Director & CEO, GMMCO, said, “We are delighted to partner with Scania, a global leader synonymous with innovation, performance and sustainability. This collaboration reflects GMMCO’s commitment to delivering comprehensive, technology-driven solutions that empower our customers across sectors. With our deep industry reach, strong service infrastructure and relentless focus on operational excellence, we are confident of driving Scania’s next phase of growth in India and creating exceptional value for our shared customers."

The expanded dealer network will cater to business segments including construction, long haulage, mining and special applications.

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