Tata Motors Makes $4.5 Billion Bet on Iveco to Power Global Expansion
- Tata Motors to acquire Iveco’s truck and bus business for $4.5 billion in its largest-ever acquisition.
- The deal gives Tata a strong foothold in Europe and boosts combined revenues to $25 billion.
- Tata gains Iveco’s electrification technology and talent, accelerating its global EV strategy.
In a landmark move to expand its global footprint, Tata Motors has announced a $4.5 billion all-cash offer to acquire the truck and bus business of Italy’s Iveco. This marks the automaker’s biggest acquisition to date and positions it as a stronger global player in the commercial vehicle space.
The acquisition will significantly boost Tata Motors’ revenue, with the combined entity expected to generate about €22 billion ($25 billion), according to a statement released on Wednesday. Revenue contributions are projected at 50% from Europe, 35% from India, and 15% from the Americas. The deal is expected to close by April 2026.
Tata Motors Chairman N Chandrasekaran called the acquisition 'the next logical step' following the company’s recent demerger of its commercial vehicles, passenger vehicles, and electric vehicles businesses. “This move will enable the combined group to compete globally with dual strategic home markets in India and Europe”, he said.
The deal provides Tata Motors with a long-coveted entry into the European commercial vehicle market, setting it up to compete with industry giants such as Volvo and Daimler. It also complements the company’s existing European presence through Jaguar Land Rover, which faces mounting challenges in markets like China and the U.S.
The acquisition brings with it more than just market expansion it also offers access to Iveco’s electrification technologies and skilled workforce, potentially accelerating Tata's shift toward next-generation mobility solutions.
Shares of Tata Motors dipped as much as 2.4% on Thursday morning amid concerns over financing, but stabilized shortly after. Despite market jitters, the acquisition is viewed as a bold step toward global growth and technology leadership.
