India’s Tata Motors aims to rank among the world’s top four commercial vehicle (CV) manufacturers as its proposed Iveco Group acquisition moves forward.
As reported by Business Standard, during the company’s annual general meeting, chairman N Chandrasekaran said the transaction was a key part of Tata Motors’ international expansion plans.
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He said the combined business was expected to increase annual revenue from about $25bn to $35-40bn within five years.
The acquisition is slated to be completed in the second quarter (July-September) of 2026-27, pending remaining regulatory approvals.
Chandrasekaran said most required approvals in multiple jurisdictions had already been obtained, with the others still in progress.
Chandrasekaran said the purchase would be funded through a combination of debt and internal cash.
He added that the debt would be serviced and repaid through Iveco’s future cash flows and that no equity dilution was planned.
The transaction is expected to provide Tata Motors with access to Iveco’s advanced powertrain and next-generation technologies, while widening its international presence and reinforcing its ability to compete in different markets.
The move comes after the demerger of Tata Motors’ CV business in November 2025, which the company has said is meant to sharpen focus on its core business while backing international expansion and investment in future mobility technologies.
Tata Motors also said its international business grew 53.9% in 2025-26, which it attributed to deeper market penetration and key order wins.
On capital allocation, Chandrasekaran said the company would keep capital expenditure at 2-4% of annual revenue, with about 55% of that set aside for future technologies.
He said spending would remain at the lower end of that range for upgrades to existing vehicle platforms and would move towards the higher end during major product and technology programmes.
When asked about the main challenges for the CV business, Chandrasekaran cited geopolitical uncertainty, supply-chain disruptions and commodity price volatility as the three main risks.
He said Tata Motors was responding through higher localisation, value engineering and tighter cost management.
“The proposed acquisition of Iveco marks a strategic step forward in advancing your company’s global ambitions. Together, we will optimise, scale, and grow to be ranked among the top four CV entities globally”, Chandrasekaran was quoted as saying.
