Tata turns to Iveco to expand truck business to Europe, North America, LatAm

India’s largest commercial vehicle maker Tata Motors is reportedly eyeing another major global acquisition. Back in 2008, the home-grown company had made a big splash internationally, buying out British luxury car maker Jaguar Land Rover for $2.3 billion.

 

The acquisition of JLR suddenly propelled the car maker on the global stage, giving it access to marquee luxury brands and high-end automotive technology, which has in recent years helped its domestic passenger vehicle business too.

 

Now, according to Bloomberg, the company is set to acquire the Italian truckmaker Iveco from the principal shareholder, the Agnelli family, which also founded the car maker Fiat. This deal could be much larger than the JLR deal, with an Economic Times report putting the value at $4.5 billion.

 

Neither Tata Motors nor Iveco have officially commented on the potential deal. However, Iveco has informed that it is planning to break up the company and separately sell its defence and commercial truck business.

 

“Iveco Group communicates that it is engaged in ongoing, advanced discussions with different parties for potential transactions involving its defence business, on the one hand, and the balance of the company on the other. In accordance with its fiduciary duties, the board of directors of the company is in the process of carefully reviewing and evaluating all aspects of these potential transactions,” the company said on Tuesday.

 

Iveco competes with the likes of Daimler and Volvo in the commercial vehicle space. However, it has been among the smallest of the European truck makers.

 

Still, for Tata Motors, the potential acquisition of Iveco could be a big boost for its truck business, in terms of technology, innovation and access to major developed markets. Iveco is present across not only Europe, but also North America and Latin America.

 

Tata Motors has been the largest commercial vehicle (CV) maker in India. In the April-June quarter, it sold 85,606 units, down 6 per cent from a year ago. In the full year ending March 2025, Tata Motors sold close to 3.77 lakh trucks and buses, down 5 per cent from a year ago. A significant part of this business is domestic.

 

Tata Motors has already announced plans to split its CV and Passenger Vehicle businesses into two separate listed entities. 

 

While Iveco’s CV business is likely to go to the Tatas, its defence business is likely to be sold to Leonardo SpA. The sale would help Fiat’s founding family expand beyond the automotive sector into areas like healthcare and luxury goods, reports have said.

Business