Tata to complete Iveco deal by September: Chandrasekaran

Commercial vehicle maker Tata Motors has secured the majority of regulatory approvals for the Iveco acquisition, and the transaction is likely to be completed by the second quarter of this fiscal, Chairman N Chandrasekaran said on Monday.The combined revenue of Tata Motors and Iveco at the time of the merger will be around $25 billion with a potential to grow to $35-billion in the next five years, Chandrasekaran said at the second Annual General Meeting of Tata Motors held here virtually.

“Over the period of the next five years, it has got a significant potential to grow to $35-billion. So there is a lot of growth opportunity, and there are a lot of synergies,” Chandrasekaran said.
The proposed acquisition of the Iveco Group marks a significant strategic step forward in advancing the company’s global ambitions. A transaction of this scale — spanning multiple geographies — requires a series of mandatory regulatory approvals.  “We have secured the majority of these and are progressing well on the remaining few.

We look forward to completing the transaction by Q2 FY27,” Chandrasekaran told shareholders. In July 2025, Tata Motors announced the acquisition of Italian commercial vehicle maker Iveco Group, excluding its defence business, for euro 3.8 billion.
Chandrasekaran said the Iveco acquisition will enable the company to access advanced powertrain and next-generation technologies and strengthen its long-term innovation pipeline.

The proposed acquisition would also enable the company to serve diverse markets with greater competitiveness and agility in line with evolving mobility needs, he said. “Together, we will optimise, scale and grow to be ranked amongst the top four commercial vehicles entities, globally,” Chandrasekaran said. 
Stating that Tata Motors’ progression is anchored in a deliberate strategy to diversify, de-risk, and drive profitable growth, he said, “Our approach has been that every business should define its strategy for the ‘right to win’ and “execute with discipline.” 

Beyond its core vehicle segments, the company is now seeing good momentum across emerging and non-cyclical businesses to ensure resilience through market cycles and deliver more consistent performance, he said.
Tata Motors’ subsidiary, TML Smart City Mobility Solutions, scaled meaningfully with over 3,800 electric buses deployed across 10 cities, he said.

“Our international business too recorded a strong growth of 53.9 per cent, driven by deeper market penetration and key order wins,” Chandrasekaran said.
Later responding to the shareholders’ queries, Chandrasekaran said there are significant synergies and opportunities due to Iveco, including a suitable product portfolio for many markets and a very strong presence in the ILCV (intermediate and light commercial vehicle) segment and buses.
“Tata Motors sees significant synergies, technology leverage and also the expansion of the engine business. All of this is a big opportunity,” he said.
Tata Motors will also bring specific platforms which make sense to its market and will also take some of its products through Iveco’s distribution wherever it makes sense, especially heavy commercial vehicles, the Tata Motors Chairman said.

“We have significant opportunities and their buses have a very strong presence all across Europe, so there may be opportunities for us,” he stated.
Iveco is a profitable, positive cash flow business in the last two financial years and this year in the first quarter they made a “small loss,”  he said, adding, “overall it is a very strong business which has potential for not only profits but also cash flows.
Stating that Tata Motors commercial vehicles have got an “exciting future,” Chandrasekaran said apart from the three or four vehicle platforms, the company is also investing heavily and reaping the benefits in their sales and services portfolio.

Responding to a question on the drop in market share of small commercial vehicles, he said: “The medium commercial vehicles and the small commercial vehicles required a turnaround, and in the last few years we have been working on it, and they are not making losses anymore.” 

He said, “Now we are at a point that we are already seeing growth in the intermediate commercial vehicles, but the focus now is also to drive growth in the small commercial vehicles and pickup in the coming year and years to come. So overall, the company is extremely well positioned and has huge opportunity for growth while continuing to improve cash flows and a high level of return on capital.” In a response to a question on the company’s EV penetration, he said, “It is pretty much in the game. But the overall EV penetration is low,” he said. PTI