It was on 30 July 2025, Tata Motors announced it had reached an agreement with European automaker Iveco Group to acquire its commercial vehicle, powertrain and finance business for EUR 3.8 billion. The transaction to be financed through a mix of equity and debt will complement Tata Motors’ frugal engineering and robust product portfolio with Iveco Group’s global product portfolio, technology and ecosystem.

Tata Motors expects to raise around EUR 1 billion through equity, along with monetising its stake in Tata Capital to help repay the EUR 3.8 billion bridge loan to acquire Iveco Group.

The new company will be able to drive better operating leverage by spreading its capital investments over larger volumes, generating important efficiencies and reducing the cash flow volatility inherent in the commercial vehicles sector. It will also enable the capabilities of Iveco Group’s successful powertrain business, FPT, to be further enhanced.

Explaining the rationale behind the move, P B Balaji, Group CFO, Tata Motors, stated that the commercial vehicle business is different from the passenger vehicle business.

“CV segment sees steady business; the disruption levels are slow and gradual. They are not very intense, and it takes a lot of time to build the brand presence, establish a financing arm, market products; therefore only way to grow substantially through inorganic means becomes part of the milestone,” he said.

Tata Motors has been working on splitting its passenger vehicle business and commercial vehicle business, with the CV business expected to be listed as an individual entity in October 2025.

Together with this move, the new combined entity, Balaji stated, will create the “world’s fourth largest CV maker and in touching distance of the number 2 and 3 in the above 6-tonne category.”

He revealed that the discussions with Iveco had been ongoing for the last six months, since the latter decided to spin it off its defence business.

“Tata Motors had never been financially strong enough to take such a move, with Iveco deciding to spin-off its defence business, one has to move very fast to diversify the portfolio and grow CV business,” he said.

The acquisition involves Iveco’s four business operations – Trucks, Buses, FPT Industrial (engine) and Iveco Capital (financing).

Together, the partners will not only complement product portfolios and capabilities but eventually benefit from substantially no overlap in their industrial and geographic footprints, creating a stronger, more diversified entity with a significant global presence and sales of over 540,000 units per year. Together, Iveco and the commercial vehicle business of Tata Motors will have combined revenues of EUR 22 billion split across Europe (50 percent), India (35 percent) and the Americas (15 percent) with attractive positions in emerging markets in Asia and Africa.

Unlimited Pathways 2.0

In what is described as the next frontier of growth for the combined entity, Balaji revealed that they will co-develop a joint roadmap christened ‘Unlimited Pathways 2.0’, which aims to define new technology-led synergy initiatives once the transaction closes in April 2026.

This is said to ‘lift the ambition for both companies to a very different level’, along with clearly defining cross-border synergies.

As per Balaji, the return on capital employed (ROCE) for the combined entity will stabilise at 20 percent, with room to grow earnings significantly. At present, for Tata Motors, the ROCE is around 40 percent, while for Iveco it is 14 percent.

“Together we believe we can actually generate substantial value, we can triple our revenue and quadruple some of our profitability numbers amongst the two of us to ensure that it still generates a 20 percent kind of a ROCE,” said Balaji.

Tata Motors, on its path, will benefit from access to Iveco’s advanced investments in the areas of technology, alternative energy, which the Indian CV market has not yet seen in a big way.

“The brand is complementary, therefore customer groups/cohorts which we were not addressed with Tata Motors brand, can now essentially be addressed with Iveco, that is the premium end of the market. Secondly, the frugal engineering capabilities we have in India, will certainly be of help for Iveco to optimise and bring design to value thinking. Thirdly, Iveco has been invested ahead of time, as in what India has been doing on various technologies, be it powertrain, software-defined vehicles (SDVs) and ADAS, among others. These are some of the technologies that we can adopt for the Indian market ahead of time, and at the same time bring in frugal engineering that will help Iveco in turn,” explained Girish Wagh, Executive Director, Tata Motors.

He further stated that the idea is to work together and complement each other wherever possible. “As we go ahead, we will put mechanisms and thoughts in place, and how we can synergies and govern the entities as ‘one Tata Motors commercial vehicle’.”

Adding to that, Balaji stated, “We also want to be sure that there will be specific areas for sure, where we would like to keep it as different as each other, as part of our learning from the Jaguar Land Rover experience. Iveco brand, the channel, we would want it to be absolutely independent, where there are two different markets it serves. But there are areas where they may overlap. And as we understand each other, the overlap will increase, but it is first important to understand each other, get the cultural sensitivities taped up between the two companies, and build the trust. At the end of the day, it is the excitement of winning together that is the first focus, and we will do it in a measured manner together with Iveco team. Engaging with them for the last six months, the mutual chemistry is excellent in ensuring that we co-create the agenda together. So that we can start lifting the ambition for both companies to a very different level.”

Sharing his expectations from unlocking the combined synergies, Balaji stated “A lot of people are seeing this as 2 + 2 together, if that is just going to be 4, we have a problem. I would want to see how this can translate to a 6 or a 8 or 20 if we can pull it off,” emphasising his significant expectations from the behemoth.

Existing partnerships to continue

Tata Motors and Iveco have established their brand over the years, the network, the supply chain and partnerships. Despite the announcement, there are still a lot many areas where decisions have yet to be made.

In India, Iveco, through FPT Industrial, is supplying LNG engines to Pune-based Blue Energy Motors, in which the company also has acquired a minority stake. Responding to a query on whether Tata Motors is looking to use Iveco’s LNG powertrains for its products, Balaji said that there were a lot of areas where they are still trying to figure out the future course of action.

Adding to that Wagh said, “There are possibilities for powertrain synergies with Iveco, but we have a very strong and long-lasting partnership with Cummins in India for powertrains for more than 33 years. We use their engines, especially in medium and heavy commercial vehicles and will continue to do so. In addition, we also formed a step-down JV to accelerate our efforts towards zero zero-emission solution – hydrogen ICE, hydrogen fuel cell or battery electric. We will continue to work on that. There are also products in our portfolio, where FPT Industrial has powertrains in both ICE diesel and gaseous fuels. We will certainly explore the synergies, which will improve the competitiveness of our products in these markets.  

Tata Motors also confirmed that as part of the deal, it will get access and nurture all the IPs, capabilities, and design from Iveco, including cabin partnership and fuel-cell with Hyundai.

Going forward, the partnership is expected to see Tata Motors introducing Iveco products in India and other markets where it has a strong geographical presence, while it will utilise Iveco’s ecosystem to introduce Tata Motors’ range of CVs.

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Tata Motors, one of India’s largest commercial vehicle manufacturers, has launched the Ace Gold+, which is the most affordable diesel variant in the Ace small commercial vehicle range.

The Ace Gold+ launched at INR 552,000 (ex-showroom) is equipped with advanced Lean NOx Trap (LNT) technology, which eliminates the need for Diesel Exhaust Fluid (DEF), significantly reducing maintenance and operating costs.

Pinaki Haldar, Vice-President & Business Head – SCVPU, Tata Motors Commercial Vehicles, said, “Since its launch over two decades ago, the Tata Ace has consistently transformed last-mile mobility across India, empowering hundreds of thousands of entrepreneurs to drive progress. With every upgrade, it has evolved to incorporate advanced technologies, versatile features and broader applications. The launch of the Ace Gold+ continues this legacy – delivering a solution that simplifies business operations, enhances profitability and reinforces our commitment to nurturing India’s entrepreneurial spirit.”

The Ace Gold+ uses a turbocharged Dicor engine delivering 22PS of power and 55Nm of torque, has a payload capacity of 900kg and multiple load deck configurations.

At present, Tata Motors’ small commercial vehicle and pickup portfolio includes the Ace Pro, Ace, Intra and Yodha, which caters to payloads from 750kg to 2-tonne. The vehicles can be had in a variety of powertrain options including diesel, petrol, CNG, bi-fuel and electric.

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Blue Energy Motors, a leading manufacturer of LNG (Liquefied Natural Gas) and electric heavy-duty trucks in India, has secured an additional USD 30 million in funding. This latest round brings the company's total capital raised to USD 50 million. The new investment comes from entrepreneur and investor Nikhil Kamath and Omnitex Industries.

The fresh capital will be used to unlock the company's full manufacturing capacity of 10,000 trucks per year. The funds will also help Blue Energy Motors accelerate production, expand its line of LNG and electric heavy-duty trucks and increase its presence across India. The company is already a key player in decarbonising India's transportation sector, which accounts for nearly 15 percent of the country’s total carbon emissions.

Anirudh Bhuwalka, Founder and Managing Director, Blue Energy Motors, said, "The fresh fund raise empowers Blue Energy Motors to accelerate India’s shift to clean, sustainable freight transportation. By harnessing both LNG and electric truck technologies, we are set to lead India’s transformation toward sustainable, zero-emission freight. Our commitment to delivering scalable, commercially viable solutions positions us at the forefront of the green mobility revolution and sets the stage for long-term value creation for our investors.”

Nikhil Kamath, Investor and Entrepreneur, said, "The future of logistics in India will be built on clean, scalable technology. The real opportunity lies in solutions that don't just chase disruption, but deliver it quietly, efficiently and at scale. Blue Energy has done that well.”

Anshuman Ruia, Director, Essar, added, "As investors in Blue Energy Motors, Essar remains deeply committed to accelerating India's transition to green mobility. Our continued investment underscores our confidence in Blue Energy Motors and the company's innovative approach to decarbonising heavy-duty transportation. This aligns perfectly with Essar's broader vision of championing sustainable business solutions across sectors."

Blue Energy Motors' vision is supported by strategic investors, including Essar and FPT (Iveco Group), which also serves as a technology partner. The company has already sold around 1,000 LNG trucks to leading Fortune 500 companies, which have collectively travelled over 60 million kilometres and reduced carbon emissions by more than 15,000 tonnes.

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Mahindra & Mahindra, the world's largest tractor manufacturer by volume, has launched its new Mahindra OJA tractor range in Australia, marking two decades of the company's presence in the country.

The OJA (derived from the Sanskrit word Ojas, meaning Powerhouse of Energy) is said to be Mahindra's most ambitious global lightweight tractor platform, developed in collaboration with Mitsubishi Mahindra Agricultural Machinery, Japan. The new range is purpose-built to handle tough Australian conditions with a robust construction and a focus on longevity, reliability and operator comfort.

Mahindra is introducing three new models from its sub-compact and compact series: the OJA 1123 HST, the OJA 1126 HST and the more powerful OJA 2126 HST. These tractors feature an ergonomic platform with advanced technologies, including a digital driver display, advanced hydraulics and button-operated PTO (Power Take-Off). They also come with a new mComfort seat with foldable armrests and a plush seat with foldable armrests.

Veejay Nakra, President of Farm Equipment Business at Mahindra & Mahindra, said, “As we celebrate 20 years of the Mahindra brand in Australia, we are proud to introduce the globally acclaimed Mahindra OJA tractor range to this important market. Built on our advanced Global Lightweight 4WD Tractor platform that’s developed in collaboration with Mitsubishi Mahindra Agriculture Machinery of Japan, the OJA range reflects Mahindra’s commitment to innovation, durability, and customer-centric design. With world-class technology and engineering, we believe this new offering will resonate with farmers and property owners in Australia who value performance and reliability.”

Ravindra S Shahane – Head, Global Product Planning & International Operations (ASEAN & ROW), Mahindra & Mahindra Ltd. said “For Australia, Mahindra is launching OJA models from the OJA 1100 and 2100 series in the Sub-Compact and Compact categories. With pioneering, first-in-segment technologies that are smart and thoughtfully engineered, the OJA range offers a powerful multitasking solution, designed to elevate versatility, operator comfort, and ease of use, essential for lifestyle and small property owners. Combining innovation with value, the new range will be available across Australia starting today.”

The OJA tractors are manufactured at a state-of-the-art facility in South India, with models also being rolled out for markets in the U.S., Canada and Thailand. Mahindra Australia is offering a comprehensive warranty package for the new tractors, including a 3-year bumper-to-bumper and an additional 3-year powertrain coverage.

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Eicher Trucks and Buses, a business unit of VE Commercial Vehicles (VECV), has partnered Pickkup, a leading tech-enabled logistics provider, for the phased deployment of 100 Eicher Pro X EV small trucks across India.

The EVs are deployed across the operations of Pickkup serving retail distributors, e-commerce, FMCG and perishable deliveries. This partnership marks a significant step toward advancing clean logistics and sustainable urban mobility, enabling faster adoption of zero-emission solutions in high-demand applications.

Pickkup, operates 100 percent electric four-wheeler fleet under an asset-light model. The Eicher Pro X EV, designed and manufactured in India at VECV’s Industry 4.0-enabled Bhopal plant, combines best-in-class range, larger cargo capacity, and CCS2 fast-charging compatibility. It is supported by Eicher’s Uptime Centre and the My Eicher connected platform to provide predictive diagnostics, real-time support and maximum vehicle availability.

Abhishek Chaudhary, SVP, Small Commercial Vehicles, Eicher Trucks and Buses, said, “This partnership with Pickkup is a significant step in our journey to support customers with future-ready mobility solutions. The phased deployment of Eicher small electric trucks demonstrates not only the confidence in Eicher’s pedigree but also the growing readiness of logistics operators to integrate EVs into their fleet. The Eicher Pro X has been co-created with customers to address real operational needs of delivering environmental and economic sustainability—making them an ideal solution for modern logistics.”

Ankush Sharma, Founder & CEO, Pickkup, added, “Pickkup’s vision is to decarbonize logistics while ensuring operational efficiency at scale. The Eicher Pro X EV, with its offering and connected ecosystem, fits perfectly into our growth strategy. With Eicher’s partnership, we can expand faster, serve more customers. With this momentum, Pickkup is taking a leadership role in shaping future-ready, and sustainable logistics solutions for India.”

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