Tata Motors in Early Talks With Italy's Agnelli Family to Buy Majority Stake in Iveco

Exor, the investment firm of Italy’s influential Agnelli family, is in discussions about a possible sale of truck manufacturer Iveco. As per Reuters reports, India’s Tata Motors has emerged as a potential buyer for the group’s controlling stake. 

The deal, still at an early stage, would exclude Iveco’s defence arm, which is undergoing a separate strategic process. These talks mark a potential shift in Europe’s commercial vehicle industry, which has already seen consolidation efforts over recent years.

Tata Motors’ Strategic Intent and Iveco’s Market Standing

According to reports, Tata Motors has approached Exor to explore the possibility of acquiring its stake in Iveco Group. Exor currently holds 27.1% of Iveco’s equity and controls 43.1% of voting rights. Iveco, which produces trucks, buses, and engines, has a market capitalisation of around €4.2 billion ($4.9 billion). The company was spun off from the CNH Group and listed independently in early 2022.

Despite being the smallest among Europe’s leading truck manufacturers behind Volvo, Daimler, and Traton, market analysts have long viewed Iveco as a potential M&A target. However, its exposure to the sensitive defence sector has often complicated any potential deal. The ongoing talks with Tata Motors, if successful, could help the Indian auto major strengthen its footprint in the global commercial vehicle space.

Defence Business Attracts Separate Bids 

As per reports, Iveco confirmed in May that it would proceed with either the spin-off or sale of its defence division IDV by the end of 2025. As per reports, 3 bids have already been submitted: a joint offer from Italy’s Leonardo and Germany’s Rheinmetall, and individual bids from Franco-German tank manufacturer KNDS and Czech arms group Czechoslovak Group (CSG). These proposals reportedly value the IDV unit at up to €1.9 billion, according to Bloomberg.

As per news reports, Exor has also initiated discussions with other non-European parties for the commercial vehicle unit, as the separation of IDV advances. Any prospective deal involving Iveco is expected to come under scrutiny from the Italian government under its ‘golden power’ law—an intervention tool to regulate foreign investment in strategic industries. It was under this same legislation that the government blocked a 2021 takeover bid for Iveco by the Chinese group FAW, when Iveco was still part of CNH.

Iveco's global workforce totals approximately 36,000 employees, with 14,000 based in Italy.

Read More: Tata Motors-Owned Jaguar Land Rover to Reduce Managerial Jobs in the UK!

Tata Motors Share Price Performance 

As of July 18, 2025, at 03:30 PM, Tata Motors share price closed at ₹680.45 per share, a decline of 0.18%

Conclusion

As per news reports, Tata Motors’ interest in Iveco marks a notable potential move in the global truck manufacturing industry. However, regulatory oversight, defence asset separation, and geopolitical considerations will significantly influence whether the deal materialises.

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