Following completion of the transaction, the combined group is expected to generate annual revenues of around €22bn, with vehicle sales exceeding 540,000 units. Revenue is forecast to be geographically diversified, with around 50% coming from Europe, 35% from India and 15% from the Americas.
According to Girish Wagh, executive director of Tata Motors, the acquisition provides greater scale while helping the company manage cyclical demand across different regions. He said that combining operations across Europe, India, the Middle East, Africa and Latin America would help smooth market fluctuations, as downturns in individual regions are offset by growth elsewhere.
Global ambitions backed by consolidation
Tata Motors has said its ambition is to rank among the world’s top three truck manufacturers. Once combined with Iveco, the company would become the fourth-largest heavy-vehicle manufacturer by volume, marginally ahead of Traton, with the gap to third place estimated at around 10,000 vehicles.
“In the commercial vehicle, truck and bus industry, we have to think globally. Consolidation is already happening, and the choice was simple: either we wait for someone to acquire us, or we move first and consolidate the market ourselves,” Wagh said.
Product development and electrification plans
Alongside expansion through acquisition, Tata Motors is also focusing on product development. In India, the company is introducing a new 8.5-litre engine supplied by Cummins for 35-tonne tipper trucks used in deep-mining applications, as well as an automated manual transmission tested in operational conditions.
The manufacturer has also announced that all Tata Motors truck cabs will be upgraded to meet European ECE R29-03 safety standards, exceeding current Indian regulatory requirements.
In parallel, Tata Motors is rolling out a range of battery-electric trucks, covering the 9- to 19-tonne segment, 28-tonne tipper trucks and tractor units designed for 55-tonne combinations. The vehicles are based on a modular platform and a battery management system developed in-house, allowing configurations to be adapted to different duty cycles and future e-axle technologies.
Wagh said the company aims to offer electric trucks that are “customer-ready” and suitable for large-scale deployment.
Long-term strategy and market implications
The Iveco acquisition forms part of Tata Motors’ longer-term strategy focused on profitability, resilience and readiness for structural changes in the commercial vehicle industry, including the shift towards zero-emission technologies. Access to a European manufacturing and engineering base is also expected to support expansion in markets such as Latin America, which the company views as under-penetrated.
From an industry perspective, the transaction underscores the accelerating consolidation of the global truck sector and signals a further reduction in the number of independent European manufacturers, as scale, technology investment and geographic reach become increasingly decisive factors.
