Tata Motors Bets on $4.5 Billion Iveco Deal to Expand Global CV Business, Eyes 40% India Market Share

Tata Motors is placing equal emphasis on improving its domestic commercial vehicle (CV) business and expanding its international presence through the proposed acquisition of Italian truck and bus manufacturer Iveco.  

The company said both areas will remain central to its commercial vehicle strategy over the next few years. 

Iveco Acquisition on Schedule 

The proposed acquisition of Iveco, valued at $4.5 billion, is expected to be completed by the end of the second quarter of FY27, subject to regulatory approvals. The deal was announced in July last year.  

According to Managing Director and CEO Girish Wagh, the two businesses have limited overlap in both markets and product offerings, making the transaction complementary in nature. 

Access to New Markets and Products 

Tata Motors has a strong presence in India, South Asia, parts of Africa, the Middle East and ASEAN countries, while Iveco operates largely across Europe and Latin America. The company said the acquisition could provide access to regions where Tata Motors has a relatively smaller presence. 

 Iveco's portfolio includes premium buses, heavy trucks, mining tippers and the Daily commercial van, while Tata Motors has a wider range of smaller commercial vehicles. 

Focus on Operations 

The company does not intend to relocate manufacturing from Europe to India after the acquisition. Instead, it is examining ways to improve sourcing and supply chains by increasing procurement from lower-cost locations, including Eastern Europe.  

Tata Motors also expects both companies to share investments in areas such as electric mobility, connected vehicles, software platforms and autonomous driving technologies. 

Domestic Market Share Target 

Alongside its global plans, Tata Motors has retained its target of reaching a 40% share of the domestic commercial vehicle market by FY28. The company said it has started the current financial year with market share gains across several segments.  

In heavy commercial vehicles, Tata Motors recorded its highest market share in nearly a decade, its strongest performance in that category in recent years. 

Margin Guidance Unchanged 

The company noted its profitability targets remain unchanged despite commodity inflation and geopolitical uncertainties. Tata Motors Commercial Vehicles has already achieved double-digit EBITDA and EBIT margins.  

Chief Financial Officer GV Ramanan said the business continues to target double-digit EBITDA margins through the business cycle, with EBITDA margins expected to move into the teens during stronger market conditions. 

Read More: Reliance Power Q4 FY26 Results: Reported ₹494 Crore Net Loss, Plans ₹9,000 Crore Fund Raise! 

Tata Motors Share Price Performance  

As of June 25, 2026, 3:30 pm, Tata Motors share price closed at ₹352.60, up 0.83% from the previous closing price. 

Conclusion 

Tata Motors is continuing with its plans to expand overseas through the Iveco acquisition while working to improve its domestic commercial vehicle market share. The company said both priorities will guide the business in the coming years. 

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