With a broader geographic footprint, Tata Motors believes the combined company gives the better ability to navigate industry cyclicality.
20 Jan 2026 | 553 Views | By Kiran Murali, Mukul Yudhveer Singh & Shahkar Abidi
Tata Motors’ Iveco deal is part of the company’s broader push to build global scale, move into the top three truck makers list amid rapid consolidation, and help navigate the cyclical nature of the industry worldwide, according to Girish Wagh, executive director and head of the company’s commercial vehicle business.
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Tata Motors’ Iveco deal is part of the company’s broader push to build global scale, move into the top three truck makers list amid rapid consolidation, and help navigate the cyclical nature of the industry worldwide, according to Girish Wagh, executive director and head of the company’s commercial vehicle business.
“Anything in commercial vehicles, trucks and buses, we need to have a global ambition,” Wagh said. The global truck industry is already dominated by a handful of large groups. Daimler Truck, Volvo Group and Paccar are among the top three players with their acquisition of several other brands.
“Globally, consolidation is happening…The choice was whether we wait for someone to come and consolidate you or you play on the front foot and do consolidation,” he said. After Volvo acquired Renault Trucks, Iveco remained the only independent truck maker in Europe.
“Iveco, as an option, was always there,” Wagh said, noting that the company, part of the Stellantis group, had undergone a financial turnaround over the last four to five years. It always kind of made sense for us to get in,” he said.
With Iveco, Tata Motors expects to strengthen its global position in the six-tonne-and-above truck segment. “Once we get in, we will be number four globally in volumes,” Wagh said, adding that the gap with the third-ranked player is narrow. Tata Motors would be in the number four position with Iveco, just ahead of Traton and the number three is just 10,000 odd units away.
Beyond scale, the acquisition is also seen as a way to navigate the cyclical nature of the commercial vehicle industry. Iveco brings exposure to Europe and Latin America, while Tata Motors has a strong base in India and other emerging markets. “As a joint company, we will be the only one present in India and emerging markets, the Middle East, Africa and Latin America,” Wagh said.
The broader geographic footprint strengthens the combined company’s ability to navigate industry downturns, as Wagh said the demand cycles in India and Europe tend to move at different times, providing a natural hedge. The acquisition also creates fresh growth opportunities, particularly by leveraging Iveco’s underappreciated strength in Latin America to expand revenues.
Tata Motors announced the deal to acquire full control of Italy-based Iveco’s commercial vehicle business in July 30, 2025 for around Rs 38,000 crore. The company is in the process of getting regulatory approvals for the deal, which is likely to be closed in April-May.
(with inputs from Ketan Thakkar)