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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Sonalika Tractors is celebrating its 30th anniversary, marking its transition from a local business in Hoshiarpur, Punjab, to a USD 1.1 billion global entity. The company is currently ranked as the third-largest tractor manufacturer in India and the fifth-largest globally.

Founded in 1996 by LD Mittal and his sons, Dr A. S. Mittal and Dr Deepak Mittal, the company began by manufacturing agricultural threshers before entering the tractor market. Sonalika adopted a strategy of customising machinery for specific soil and regional conditions rather than following industry standardisation. Since 2011, the company has utilised vertical integration, manufacturing its own engines, transmissions and sheet metal aggregates in-house.

Technical milestones of the brand include:

• Production Capacity: The Hoshiarpur facility was expanded in 2017 to become a fully integrated plant capable of producing one tractor every two minutes.
• Product Range: The company develops over 2,000 models ranging from 20 HP to 120 HP.
• Export Leadership: Sonalika has been India's leading tractor export brand for seven consecutive years, holding a 30 percent market share in exports. Every third tractor exported from India is manufactured at its Hoshiarpur facility.
• Global Presence: The brand operates in over 150 countries and owns six assembly plants internationally.

In 2022, Sonalika became the first Indian tractor manufacturer to publish vehicle prices on its website, followed by the publication of service costs in 2025.

Going forward, the company intends to increase its production capacity to 300,000 tractors per year. Future plans include the integration of digital platforms and connected diagnostics to manage farmer engagement and vehicle maintenance.

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Caterpillar has announced an expanded collaboration with Nvidia to develop AI-enhanced solutions for machines, manufacturing facilities and supply chains. The partnership focuses on applying physical AI to heavy equipment to assist with autonomy and site management.

The automaker is utilising the Nvidia Jetson Thor platform to enable real-time AI inference on its construction, mining and power equipment. This technology provides a foundation for autonomous operations and in-cab assistance. Machines will process sensor data via edge computing to provide safety alerts, productivity tips and real-time coaching to operators. In mining and construction environments, these systems are designed to process data points in milliseconds to navigate changing jobsite conditions.

At CES 2026, the company debuted the Cat AI Assistant, a tool embedded in digital and onboard products. Built using Nvidia Riva speech models, the assistant uses voice activation to help users manage equipment settings, perform troubleshooting and access maintenance information. The system draws from Caterpillar’s Helios unified data platform to provide context-specific recommendations to dealers and customers.

Caterpillar is also implementing an Nvidia AI Factory to automate manufacturing processes, including forecasting and production scheduling. The company is developing digital twins of its factories using Nvidia Omniverse and OpenUSD. These virtual models allow engineers to simulate and optimise factory layouts and production flows before physical implementation.

Joe Creed, CEO of Caterpillar, said, “As AI moves beyond data to reshape the physical world, it is unlocking new opportunities for innovation – from job sites and factory floors to offices. Caterpillar is committed to solving our customers’ toughest challenges by leading with advanced technology in our machines and every aspect of business. Our collaboration with Nvidia is accelerating that progress like never before.”

Jensen Huang, Founder and CEO, Nvidia, said, “For a century, Caterpillar has built the industrial machines that shaped the world. In the age of AI, Nvidia and Caterpillar are partnering across the full spectrum – from autonomous construction fleets to the AI data centres powering the next industrial revolution.”

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Pune-headquartered automotive major Force Motors has reported domestic wholesale growth of 49 percent in December 2025, reaching 2,952 units compared to 1,985 units in December 2024.

The automaker stated that for YTD FY2026 it sold 24,920 units, marking a 25 percent growth over the same period last year.

Quarterly performance showed momentum with Q3 domestic wholesales rising 47 percent to 8,427 units, up from 5,723 units in the corresponding quarter. The company attributed these figures to demand across its vehicle platforms, specifically the Traveller and Urbania ranges. According to the company, the tour and travel segment is showing signs of revival through fleet expansion and intercity movement, while school mobility remained steady.

Prasan Firodia, Managing Director, Force Motors, said, “December has been another strong month for us, and it is encouraging to see positive momentum across our core platforms. We are beginning to witness clear signs of revival in the tour and travel segment, supported by rising intercity movement and renewed fleet expansion. School mobility has also remained steady through the holiday period, reflecting growing institutional confidence as we head into the new year. The continued traction for Urbania across urban and emerging markets, along with the commanding market leadership of the Traveller range, underscores the trust customers place in Force Motors. Together, these trends point to a broad-based strengthening of demand and give us a solid foundation as we step into 2026”.

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Mumbai-headquartered Tata Motors has reported its domestic commercial vehicle (CV) sales of 107,918 units for Q3 FY2026, which marks an 18 percent YoY growth, as compared to 91,260 units sold last year.

For December 2025, domestic CV sales stood at 40,057 units, up 24 percent YoY, over 32,369 units sold a year ago.

On the other hand, the company sold 2,451 units in the international market, up 63 percent YoY.

Girish Wagh, MD & CEO, Tata Motors, said, “The sales momentum ignited by GST 2.0 and the festive surge in Q2FY26 continued into Q3FY26, driving growth and lifting overall sentiment of the commercial vehicles industry. Tata Motors registered double-digit sales growth in Q3FY26, powered by a strong rebound in construction and mining activity post the extended monsoon, along with sustained demand from core sectors and auto logistics. Continued strength in SCVs and Pickups further amplified performance, resulting in wholesales of 115,577 units, with 21 percent YoY  growth over Q3FY25 and 22 percent sequential growth over Q2FY26. Going forward, we expect demand to strengthen in Q4FY26 across most commercial vehicle segments. Key drivers in 2026 will include the government’s sustained infrastructure push and expansion in end-use sectors, both of which are expected to fuel positive momentum for the industry. With an optimised portfolio ensuring superior product availability, a decisive pricing strategy, and deeper customer engagement through intensified market activations, Tata Motors is well-poised to unlock demand across segments, paving the way for continued success.”

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