Indian automaker Tata Motors buys Italian heavy vehicle manufacturer Iveco for €3.8 billion - Tata Motors, an Indian automaker, forks over €3.8 billion to acquire Iveco, an Italian vehicle manufacturing company.
Tata Motors, an Indian automotive manufacturer, has announced its acquisition of Iveco, a European commercial vehicle manufacturer, for 3.8 billion euros. The acquisition, expected to be completed in the first quarter of 2026, is aimed at strengthening Tata Motors' global presence and increasing its market share.
The combined entity is projected to have an annual production and sales volume of around 540,000 vehicles, with combined revenues of approximately €22 billion. The geographical breakdown of sales will be approximately 50% in Europe, 35% in India, and 15% in the Americas, with additional presence in emerging markets across Asia and Africa.
No plant closures or job cuts are planned for two years following the acquisition completion. Iveco's defence business will be excluded from the acquisition and divested or spun off by March 31, 2026. The combined commercial vehicle operations will create a global leader in commercial vehicles with complementary product portfolios and industrial footprints.
Tata Motors already operates in India, the UK, South Korea, Thailand, and Indonesia and markets vehicles in Africa, the Middle East, Latin America, Southeast Asia, and SAARC countries, supporting a broad distribution network. With Iveco's strong European market presence, the merged companies aim to establish a diversified global commercial vehicle manufacturer.
Jaguar Land Rover, a wholly-owned subsidiary of Tata Motors, is not affected by this acquisition. The operations of Tata Motors and Iveco are not expected to be immediately impacted by the acquisition. The combined companies' annual turnover is projected to be 35% from India, 50% from Europe, and 15% from America.
[1] Tata Motors Press Release: Tata Motors to Acquire Iveco (2025) [2] Iveco Financial Report: Q4 2025 [3] Tata Motors Annual Report: 2025 [4] Tata Motors Investor Presentation: Q1 2026
- The acquisition of Iveco by Tata Motors will create a global leader in the commercial vehicle industry, with an annual production and sales volume of around 540,000 vehicles and combined revenues of approximately €22 billion.
- The combined commercial vehicle operations of Tata Motors and Iveco will have a geographical breakdown of sales, with approximately 50% in Europe, 35% in India, and 15% in the Americas, and will aim to establish a diversified global commercial vehicle manufacturer with complementary product portfolios and industrial footprints.
