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Iveco, Tata Motors’ New Partner is a CV Maker With a Chequered Past

Published on 4 Aug, 2025, 5:38 AM IST
Updated on 4 Aug, 2025, 5:41 AM IST
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Sutanu Guha
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Iveco, the Italian commercial vehicle major which is set to be acquired by Tata Motors, was formed by combining five truck brands within the Fiat Group. 

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Tata Motors announced a landmark deal on Wednesday to acquire the Italian multinational commercial vehicle manufacturing company, Iveco. With the necessary approvals in place, both companies combined will claim the fourth position in the global commercial vehicle industry of 6 tonnes and above. 

Together, Tata Motors and Iveco are poised to have a combined revenue of €22 billion (₹2.20 lakh crores) across Europe, Africa, and the Americas. The Iveco acquisition is the second major inorganic move by Tata Motors’ commercial vehicle business. The first one was the acquisition of Daewoo Trucks, South Korea’s second-largest truck maker, in 2004.

Also Read: Tata Motors to Acquire Iveco Group in All-Cash Deal, Eyes Global Leadership in Commercial Vehicles

Iveco is a far bigger player than Daewoo Trucks. The Italian player has a chequered and interesting history.

The Iveco Group Formation

Iveco was incorporated in 1975 after the merger of five truck brands within Italy’s Fiat Group – Fiat Veicoli Industriali, OM and Lancia of Italy, Unic of France, and Magirus Deutz of Germany. Since then, it has seen multiple mergers and acquisitions, all centred around the commercial vehicle business. From holding a 52% share in a joint venture with Ford’s truck business in Europe, to acquiring heavy-duty truck manufacturer, Astra. In 1999, it joined hands with Renault VI to form Irisbus Iveco to manufacture buses, which was later rebranded to Iveco Bus in 2013. 

Meanwhile, Fiat merged all its powertrain, automotive and industrial activities under FPT (Fiat Powertrain Technologies) in 2005. In 2011, Fiat Industrial was formed when Iveco, FPT Industrial and CNH Global N.V. were demerged from Fiat S.p.A. Later in 2013, Fiat Industrial and CNH Global N.V. merged to form CNH Industrial. Later, CNH Industrial demerged in 2022 to finally establish Iveco Group as an independent organisation, and went on trade at Euronext Milan on January 3, 2022. 

Also Read: Tata Bets on Synergistic Benefits With Iveco for Tech, Global Play

Present Situation

Currently, Iveco’s trucks have an 11% market share in the European and Latin American markets, which was also a key factor for the acquisition offer by Tata Motors. It’s the second largest bus manufacturer in Europe, and the world’s fifth largest manufacturer of powertrain and engines. While Europe accounts for 75% of the industrial revenue for Iveco, its operations in South Africa contribute 12%. 

Iveco trucks are leaders in the LCV category and in the past few years have been gaining traction in the Heavy Commercial Vehicle segment. It is also slated to launch new commercial vehicles based on fully-electric platforms. Iveco’s electrification technology prowess is seen as a major synergistic advantage by Tata Motors. 

A win-win deal?

With this acquisition, Tata Motors will not only gain access to the lucrative European market with its CV business, but it will also bring in more products. “This partnership not only enhances our ability to serve diverse mobility needs across markets, but also reinforces our commitment to delivering sustainable transport solutions that are aligned with global megatrends,” noted Girish Wagh, Executive Director of Tata Motors. 

Also Read: Tata Motors Signs 100 Magna EV Coach Agreement with UBS Unit

Additionally, aligning with Tata Motors' electric mobility plans in the future, Iveco will also gain access to the acclaimed Indian frugal value engineering and manufacturing prowess that’s also available in Tata Motors. Olof Persson, CEO of Iveco Group, says,” By joining forces with Tata Motors, we are unlocking new potential to further enhance our industrial capabilities, accelerate innovation in zero-emission transport, and expand our reach in key global markets.

The Transaction Timeline

The Iveco acquisition announcement has come after six months of discussion between the two companies, but the deal completion is still some time away. 

The acquisition is scheduled for completion in the first half of 2026, following the separation and sale of Iveco’s defence unit, which is expected to be done by March 31, 2026. Regulatory approvals from various merger control and foreign investment authorities will be required before the transaction can close. Following this, Iveco will be delisted from Euronext Milan and operate as a wholly owned subsidiary of Tata Motors. 

Once all necessary approvals are in place, Tata Motors expects the acquisition to take both the players to totally different levels in the global commercial vehicle game. Will the Italian Iveco prove to be just what the doctor ordered for Tata Motors Commercial Vehicles for a great journey as an independent entity in the coming years?

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Iveco, Tata Motors’ New Partner is a CV Maker With a Chequered Past