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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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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Montra Electric’s Small Commercial Vehicles (e-SCV), part of the Chennai-headquartered Murugappa Group, has opened its newest dealership in Coimbatore.

The facility operated by TVS Vehicle Mobility Solution will retail EViator, Montra Electric’s e-SCV, designed for intercity logistics, market load operations and cargo movement.

Saju Nair, CEO, TIVOLT Electric Vehicles (e-SCV division of Montra Electric) and Madhu Raghunath, CEO, TVS Vehicle Mobility Solution inaugurated the facility.

“As a brand proudly rooted in Tamil Nadu, it gives us immense pride to enter Coimbatore with our first dedicated e-SCV dealership in the city. Coimbatore is known for its entrepreneurial zeal and robust industrial base. With this launch, we aim to support the city’s logistics ecosystem with cleaner, smarter commercial mobility solutions. Our partnership with TVS Vehicle Mobility Solution reflects a shared commitment to delivering future-ready, high-performance electric vehicles tailored for the evolving needs of local businesses and fleet operators,” said Nair.

Raghunath, added, “We are excited to partner with Montra Electric to introduce the EViator to Coimbatore. The city’s logistics and transportation sectors are ready for a green shift, and the EViator delivers on all fronts- performance, durability, and total cost advantage. With this collaboration, we are committed to ensuring a seamless and dependable ownership experience for fleet owners and commercial users alike."

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Tata Motors, one of India's largest commercial vehicle manufacturers, has officially launched its products in the Dominican Republic through a new partnership with local distributor – Equimax.

The move is part of the company's global expansion strategy and introduces a variety of trucks and utility vehicles designed for the region's growing logistics and construction sectors.

The new lineup includes the Super Ace mini-truck for last-mile delivery, the Xenon pickup truck and the Ultra range of trucks. For the construction industry, Tata is introducing the LPT 613 tipper.

Asif Shamim, Head of International Business, Tata Motors Commercial Vehicles, said, “The Dominican Republic presents a high-potential market aligned with Tata Motors Commercial Vehicles’ global growth ambitions. With its growing economy and infrastructure, our advanced commercial vehicle solutions are well-positioned to support national development goals. Backed by Equimax’s strong local presence, we aim to deliver unmatched value through reliable products, efficient service, and long-term customer support for meeting the aspirations of transporters and businesses in the country.”

Gabriel Tellerias, President, Equimax, added, “The introduction of Tata Motors’ globally trusted commercial vehicles marks an important milestone for the Dominican Republic’s transport and logistics sector. These vehicles have been carefully selected from Tata Motors’ expansive portfolio and reflect a clear understanding of local business needs. Our priority will be to ensure a superior ownership experience through Equimax’s strong commitment to exceptional after-sales service, offering customers timely support and long-term value. We value our partnership with Tata Motors and look forward to driving growth and progress together in the Dominican Republic.”

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Automotive Manufacturers (AMPL Group), a leading automobile retail conglomerate, has inaugurated its new Mahindra CV (commercial vehicle) dealership in Madurai, Tamil Nadu.

The strategically located facility at Pandi Kovil Ring Road, aims to enhance accessibility and service for customers in the Madurai North region. It aims to serve the growing demand from the captive and market load operator segments across the region.

The facility is spread across 3,500 sqft and it has a display area to showcase five Mahindra Light Commercial Vehicles (LCVs).

With over 138 Mahindra touchpoints, AMPL Group is Mahindra’s largest sales and aftersales partner in the country with presence across six states - Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Maharashtra and Kerala. In FY2025, it retailed over 37,000 Mahindra vehicles.

Rajiv Sanghvi, Executive Director, Automotive Manufacturers, said, “We are proud to further strengthen our longstanding partnership with Mahindra through the inauguration of this Commercial Vehicle showroom in Madurai – our 138th Mahindra touchpoint. Our journey with Mahindra spans nearly seven decades, marked by shared values and a commitment to excellence. With a robust network across six Indian states, we have consistently worked together to deliver outstanding value to our customers. With Mahindra’s technologically advanced products, customer-centric approach coupled with our deep understanding of the customer needs we together endeavour to provide Best-In-Class ownership experience for our customers.”

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