Tata Motors has announced a price increase of up to two percent across its commercial vehicle range, effective 1 April 2025. The price increase is to offset the rise in input costs and will vary as per the model and variant. 
The earlier price increase announced by the commercial vehicle major was in December 2024. The increase, effective from 1 January 2025, was to the tune of two percent across its trucks and buses portfolio. The reason given was the same, then – to offset the rise in input costs. The price increase, it was announced much like now, would vary as per individual model and variant. 
In February 2025, Tata Motors Commercial Vehicle business witnessed a sales decline of seven percent with the sale of 32,533 units. In the same month last fiscal, the company sold 35,085 numbers. 

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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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Mahindra Construction Equipment Division (MCE), part of the Mahindra Group, has introduced its upgraded range of CEV-V compliant machines, aimed at improving performance, comfort and fuel efficiency while meeting the latest emission standards.

The new lineup includes the Mahindra EarthMaster SX Backhoe Loader and the Mahindra RoadMaster G100 motor grader. Both models are equipped with higher-powered engines that meet CEV-V norms. The EarthMaster SX features a 74 HP engine, a more spacious and ergonomic cabin and iMAXX telematics for improved efficiency. The RoadMaster G100 is fitted with a 102 HP engine and 440 Nm torque, making it suitable for heavy-duty road construction on state and national highways.

Dr Venkat Srinivas, Business Head – Truck and Bus & Construction Equipment, Mahindra & Mahindra, said, “Our consistent efforts to introduce cutting-edge products and technologies, coupled with emphasis on local manufacturing, exemplify Mahindra’s strong commitment to the Make in India initiative. The introduction of the new CEV-V range of construction equipment reaffirms Mahindra's efforts to achieve the sustainability goals set by the Government of India.”

Mahindra is offering industry-first guarantees with the EarthMaster Backhoe Loader, including:

• 48-hour uptime guarantee or INR 1,000 per day compensation
• Highest productivity per litre in standard mode
• Guaranteed highest fuel efficiency in standard mode

The company will also continue to offer CEV-V compliant versions of its existing models, including the EarthMaster SXe (55 HP), and RoadMaster G90 and G80 graders (74 HP).

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Gro Digital Platforms, a joint venture between Ashok Leyland and Hinduja Leyland Finance has inked a Memorandum of Understanding (MoU) with IDFC FIRST Bank to launch FASTag services for fleet owners and transporters across India.

As part of the understanding, Gro Digital Platforms will promote FASTag (IDFC FIRST Bank) through Ashok Leyland dealers. On the other hand, Gro Digital Platforms, which connects freight originators with a network of fleet operators, will now offer its partners a comprehensive digital toll payment solution that ensures improved efficiency, transparency and convenience.

The partnership aims to provide a smarter, fully connected logistics ecosystem. In addition, IDFC FIRST Bank will leverage Gro’s flagship Sadak Ka Saathi program to offer comprehensive Roadside Assistance to its eligible commercial vehicle FASTag customers. The SKS network will also be used as nodal points for FASTag distribution.

Mudasar Mohamed, CEO, Gro Digital Platforms, said, “This partnership aligns with our vision to create a technology-driven integrated road freight platform that enhances efficiency and provides value-added services to our fleet partners. With FASTag integration, we are taking a major step forward in our commitment to seamless mobility solutions. In addition, we are very pleased to offer our industry leading Road Side Assistance solution, Sadak ka Saathi, to IDFC FIRST Bank’s commercial vehicle FASTag customers. We remain committed to driving further innovation in India’s transportation landscape.”

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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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