Tata Motors Acquires Iveco Group, Reshapes Commercial Vehicle Landscape

As of August 14, 2025, Tata Motors is preparing to acquire the Italian commercial vehicle maker Iveco Group, excluding its defense business, for €3.8 billion (around ₹38,240 crore). This acquisition, expected to be completed by April 2026, will be Tata Motors' biggest buyout to date.

The upcoming demerger of Tata Motors' commercial vehicle business and the proposed Iveco acquisition are part of the company's strategic restructuring. According to S&P Global Ratings, Tata Motors' balance sheet strength will help offset the impact of these changes, as well as the risks associated with the Iveco acquisition.

The ratings agency estimates that the Iveco acquisition will increase Tata Motors' commercial vehicle revenue and EBITDA by about 2x from fiscal 2026 levels. This will position the combined business closer to its rated peers, such as PACCAR Inc. and Traton SE, in terms of revenue. Iveco's presence in Europe and Latin America will also reduce the geographic concentration of Tata Motors' commercial vehicle manufacturing.

However, Iveco is not a market leader in its key markets, and it has limited direct synergies with Tata Motors' commercial vehicle portfolio. The performance of Tata Motors' passenger vehicle business, including its subsidiary Jaguar Land Rover Automotive PLC, is also expected to remain weak through fiscal 2026 due to geopolitical uncertainties and commercial vehicle sales volume pressures.