In what comes as a major announcement in the commercial vehicle industry, Tata Motors, one of India’s leading CV player, is set to acquire Europe’s Iveco Group’s CV business for EUR 3.8 billion. The transaction, if approved, is expected to close in the first half of 2026.

The deal once through will create a ‘force majeure’ in the global CV industry, combining Tata Motors’ frugal engineering strength with Iveco Group’s strength in electrification and the alternative energy domain.

The offer, made by Tata Motors CV Holdings (a Tata Motors affiliate), aims to acquire 100 percent of Iveco’s common shares post the separation of Iveco’s defence business. The tender offer price is set at EUR 14.1 per share, with an additional estimated EUR 5.5–6.0 per share dividend to be distributed from the proceeds of the defence business sale.

Exor N.V., Iveco's largest shareholder, has agreed to tender its 27.06 percent stake and support the proposed resolutions at Iveco’s upcoming extraordinary general meeting (EGM). The deal has the unanimous backing of Iveco's board, which has recommended the offer to its shareholders.

The combined group will operate across key markets including Europe (50 percent), India (35 percent) and the Americas (15 percent), with annual sales of approximately 540,000 units and combined revenue of around EUR 22 billion. Tata Motors and Iveco expect the partnership to enhance their ability to invest in zero-emission transport, optimise global supply chains and expand product innovation.

Subject to regulatory approvals and shareholder support, the parties plan to finalise the separation of Iveco’s defence business by March 2026. Should this not occur through a sale, the business will be spun off into a newly listed entity by April 2026 to allow the main offer to proceed.

As part of the understanding, Tata Motors has also committed to a two-year non-financial covenant period post-settlement, including no direct workforce reductions or plant closures and preserving Iveco’s identity, brands and headquarters in Turin, Italy.

Both companies emphasised that the move will establish a globally competitive platform equipped to address shifting mobility trends and create long-term value for stakeholders.

The combined group will be better positioned to invest in and deliver innovative, sustainable mobility solutions by leveraging both supplier networks to serve customers globally. It will also unlock superior growth opportunities and create significant value for all stakeholders in a dynamic marketplace. By preserving each group’s industrial footprint and employee communities, this complementarity is also expected to foster a smooth and successful integration process. It will also enable the capabilities of Iveco Group’s successful powertrain business, FPT, to be further enhanced.

Natarajan Chandrasekaran, Chairman, Tata Motors, said, “This is a logical next step following the demerger of the Tata Motors Commercial Vehicle business and will allow the combined group to compete on a truly global basis with two strategic home markets in India and Europe. The combined group's complementary businesses and greater reach will enhance our ability to invest boldly. I look forward to securing the necessary approvals and concluding the transaction in the coming months.”

Suzanne Heywood, Chair, Iveco Group, said, "We are proud to announce this strategically significant combination, which brings together two businesses with a shared vision for sustainable mobility. Moreover, the reinforced prospects of the new combination are strongly positive in terms of the security of employment and industrial footprint of Iveco Group as a whole.”

Girish Wagh, Executive Director, Tata Motors, said, "This combination is a strategic leap forward in our ambition to build a future-ready commercial vehicle ecosystem. By integrating the strengths of both organisations we are unlocking new avenues for operational excellence, product innovation and customer-centric solutions. This partnership not only enhances our ability to serve diverse mobility needs across markets, but also reinforces our commitment to delivering sustainable transport solutions that are aligned with global megatrends. Together, we are shaping a resilient and agile enterprise, equipped to lead in times of transformative change."

Olof Persson, CEO, Iveco Group, said, “By joining forces with Tata Motors, we are unlocking new potential to further enhance our industrial capabilities, accelerate innovation in zero-emission transport, and expand our reach in key global markets. This combination will allow us to better serve our customers with a broader, more advanced product portfolio and deliver long-term value to all stakeholders.”

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IVECO BUS has won Lot 1 of Italy’s latest Consip tender to supply natural gas-powered minibuses to Italy. The award covers 80 DAILY CNG minibuses: 30 urban (Class I) and 50 interurban (Class II) vehicles.

The model selected is the Daily 70C14 CNG with Indcar body, chosen for its operational capability and low environmental effect.

The 80 minibuses include an 8-speed automatic gearbox, rear air suspension and methane tanks for range. A separate driver’s cab aids safety. All vehicles meet current safety rules and feature advanced driver assistance systems (ADAS), a fire suppression system, a TPMS tyre pressure monitoring system, route indicators, an AVM system, CCTV cameras and a passenger counting system.

Giorgio ZINO, Head of IVECO BUS Commercial Operations in Europe, said, “Being awarded this important Consip tender confirms the relevance and reliability of our offering, particularly in the methane-powered vehicle segment, where we have solid experience. The DAILY CNG minibuses represent a concrete and effective solution to support the ecological transition of public transport, combining environmental sustainability, safety, and comfort. We are proud to actively contribute to a more responsible mobility model that serves local communities.”

The Urban Models (Class I) minibuses can accommodate 14 seated passengers, 14 standing passengers and a space for wheelchair users, accessible via a manual ramp. Seats are monocoque to resist vandalism.

On the other hand, the Interurban Models (Class II) offer 22 seated places, 5 standing places and a space for passengers with reduced mobility, also with a manual ramp. Seats are fabric-upholstered and include hand grips.

The company shared that the compact size and level of customisation make the Daily CNG vehicles useful for both urban and interurban operation, supporting comfort, safety and operational effectiveness.

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The India-Japan Fund (IJF), managed by the National Investment and Infrastructure Fund Limited (NIIF), has announced an investment of INR 5 billion (USD 57 million) in Pune-headquartered electric commercial vehicle manufacturer EKA Mobility.

The capital infusion aligns with IJF's objective to invest in the climate segment and accelerate investments within the India-Japan corridor. EKA Mobility, a subsidiary of Pinnacle Industries, focuses on electric commercial vehicles developed with in-house R&D and technology.

The funding will support EKA Mobility’s plans to increase its manufacturing capacity, advance research and development, improve its supply chain infrastructure and enhance marketing efforts for domestic and international markets. EKA Mobility's existing shareholders include VDL Groep (Netherlands), Mitsui & Co, (Japan) and ENAM Holdings (India).

Krishna Kumar, Partner & Fund Head, IJF, said, “Our investment in EKA Mobility continues to reflect our confidence in India’s electric mobility potential and the capability of homegrown OEMs to drive meaningful change in the market. IJF is supporting enterprises that are shaping India’s journey to a low-carbon economy, and also committed to promoting India-Japan business partnerships. We are glad to support Eka Mobility's growth in the sustainable commercial transportation segment, wherein it combines its technical, design capabilities and manufacturing infrastructure to take advantage of India's transition in the mobility segment.”

Dr. Sudhir Mehta, Founder & Chairman of EKA Mobility, added: “We are proud to have NIIF as a strategic partner in our growth journey. This investment comes at a crucial time as we expand operations, strengthen our R&D, and accelerate the adoption of electric mobility across India. NIIF’s support reinforces our shared vision of creating sustainable, inclusive, and future-ready transportation solutions.”

The company's zero-emission vehicle portfolio spans electric buses, intercity coaches, three-wheeler passenger and cargo vehicles, heavy-duty trucks and small commercial vehicles.

EKA Mobility has confirmed orders for over 3,300 electric buses from state government procurements, municipal corporation contracts, and private commercial fleets. The collaboration supports the Indian government’s objectives on electrification of public transport and domestic manufacturing under the Make-in-India and Atmanirbhar Bharat initiatives.

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Chennai-based commercial vehicle major Ashok Leyland has secured an order for supplying 1,937 buses to the Tamil Nadu State Transport Undertakings (TNSTU). The order further reinforces Ashok Leyland's partnership with the TNSTU, which currently operates over 21,000 of the company's buses.

The new buses will feature the advanced iGen6 BS VI technology and are designed for passenger comfort. The order includes a mix of fully built and chassis configurations for town, mofussil and SETC (State Express Transport Corporation) applications. Each vehicle is built on the AIS 153-compliant chassis platform, which meets the latest Indian safety and performance regulations.

The order for a mix of the new Viking and SETC models offer features to meet the needs of public transport:

• Power Needs: All Town / Mofussil and SETC buses have an upgraded Battery and Alternator to meet the power needs of Advanced ITMS (Intelligent Transport Management Systems).
• Safety: High-speed Mofussil and SETC buses are equipped with Electronic Stability Control for improved stability.
• Comfort: Urban Low Entry and Semi Low Floor buses (650mm) include automatic transmission and air suspension, and are equipped with a wheelchair ramp for passengers with special needs.

Madhavi Deshmukh, National Sales Head – MHCV, Ashok Leyland, said, “We are proud to strengthen our long-standing partnership with the Tamil Nadu State Transport Undertakings through this significant order. Tamil Nadu has always been an important market for us, and this order is a testament to the trust and confidence our customers place in Ashok Leyland’s technology and performance. This order win reinforces our dedication to creating efficient and technologically advanced products that exceed our customers' expectations and contribute to the growth of public transportation. Our focus continues to be on developing advanced, safe and efficient mobility solutions that meet the evolving needs of public transportation in India.”

Mohan K, Head Bus - MHCV, Ashok Leyland, said, “We are thrilled to have received this order from the Tamil Nadu State Transport Undertakings for 1937 buses. Tamil Nadu has always been one of our most valued markets, and we take great pride in being a key partner in strengthening the state’s public transport system. These advanced buses, equipped with the latest safety, technology and comfort features, underscore our commitment to delivering reliable, efficient, and safe mobility solutions. We remain dedicated to supporting the government’s vision of providing modern and sustainable transportation for the people of Tamil Nadu.”

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Chennai-based commercial vehicle major Ashok Leyland has commenced deliveries of the 24 units of AVTR 55T Electric trucks to ASAT Logistics, which is the strategic logistics partner for Shree Cement.

The keys to the first batch of four trucks were handed over by Sanjeev Kumar, President - MHCV, Ashok Leyland, to Arvind Sarda, CEO, ASAT Logistics.

The trucks use lithium-ion battery technology with dual-gun charging and are compatible with industry-standard trailers and superstructures. The vehicles include a cabin, automatic transmission, telematics and a suite of Advanced Driver Assist Systems (ADAS) and safety features.

Sanjeev Kumar, said, “We are thrilled to deliver the first batch of 4 units of our AVTR 55T Electric trucks to ASAT Logistics. These trucks highlight our commitment to innovation, sustainability, and performance in the commercial vehicle sector. This partnership reflects the growing confidence in our electric mobility solutions and reinforces our position as a technology leader in the logistics ecosystem. As we continue to push the boundaries of clean transportation, we remain focused on delivering reliable, efficient, and future-ready mobility solutions.”

Arvind Sarda, said, “We have complete trust in the quality and performance of Ashok Leyland trucks. Together with Shree Cement, we embark on a journey toward a cleaner, more efficient, and sustainable future. We thank Ashok Leyland for delivering the technologically advanced AVTR 55T Electric trucks, enabling us to take further our commitment to building a sustainable and eco-friendly transportation ecosystem. With Ashok Leyland’s dedication to innovation and our forward-thinking approach to logistics for Shree Cement, we look forward to continued success on the road.”

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