India’s Tata Motors has announced a €3.8bn acquisition of the vehicles arm of Iveco.
The deal is due to close in the first half of 2026, with unanimous approval by Iveco’s board. It does not include Iveco’s defence business.
According to a press release from Tata Motors, the offer brings together two businesses with highly complementary product portfolios and capabilities and with substantially no overlap in their industrial and geographic footprints, creating a stronger, more diversified entity with a significant global presence and sales of over 540k units per year.
Together, Iveco and the commercial vehicle business of Tata Motors will have combined revenues of €22 billion split across Europe (50%), India (35%) and the Americas (15%) with attractive positions in emerging markets in Asia and Africa.
“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,” the media statement said
“Furthermore, in the context of the ongoing, rapid transformation of the global commercial vehicle industry, the strategic combination of the commercial vehicle business of Tata Motors and Iveco Group will transform both entities, creating a robust platform with a global customer base and geographically diverse footprint.
“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.”
Natarajan Chandrasekaran, chairman of Tata Motors, said the acquisition is the next logical step following the demerger of the Tata Motors Commercial Vehicle business.
“And it 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 of Iveco Group, added, “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.”
