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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German technology company ZF Group has appointed Jake Morris as the Site Leader for ZF Hub UK, located in Solihull, effective from 1 January 2026.

Morris assumes responsibility for the leadership of the technical centre, which opened in 2021 to support the company’s research, development and manufacturing footprint in the UK.

He has spent over 25 years with ZF, holding positions in portfolio management, finance, purchasing and engineering. In addition to his new role, he will continue to oversee the global steer-by-wire strategy, a technology that replaces mechanical steering connections with electronic signals. His previous experience as Portfolio Director involved managing steering product strategies for mobility technologies.

At present, the Solihull facility serves as a centre for advanced engineering and testing across the automotive, industrial and aerospace sectors. The site has contributed to the development of autonomous driving systems and steer-by-wire technologies. It houses a testing facility used by both ZF and external customers to validate new technologies within the UK’s automotive sector.

Morris succeeds Bal Panaser, who is retiring following a career of more than 40 years in the automotive industry. Panaser was involved in the establishment and management of ZF’s operations in the UK. Morris will now focus on the site’s integration into ZF’s global technology roadmap and the delivery of engineering solutions.

“I am proud to take on this role and to lead the talented teams at the ZF Hub UK. The site has a strong legacy within both ZF and the automotive industry, with significant history of automotive technology development and testing. For instance, technologies including ZF’s autonomous driving and Steer-by-Wire technologies began life at the site. I look forward to working closely with colleagues and partners to continue delivering innovative technology solutions for our customers and supporting ZF’s long-term success,” said Morris.

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Mitsubishi Fuso Truck and Bus Corporation (MFTBC) and Hon Hai Technology Group (Foxconn) have announced plans to establish a new standalone bus company, which will be headquartered in Kawasaki, Japan.

The new entity will be led by Katsuto Kora as the designated Chief Executive Officer. The transaction is expected to close in the second half of 2026, subject to regulatory and shareholder approvals.

The partnership involves Mitsubishi Fuso Bus Manufacturing (MFBM) and Foxtron Vehicle Technologies, which will cooperate on the development, production, supply chain management and sales of zero-emission buses, starting with the MODEL T and MODEL U models. Operations will be based at a plant in Toyama, where vehicles will be manufactured under the FUSO brand.

The new OEM brand will focus on the launch of electric buses for domestic and international markets while maintaining the existing internal combustion engine portfolio. By using local development and production, the company aims to comply with Japanese regulations and quality standards. The project integrates Foxconn’s software and electronics expertise with MFTBC’s experience in commercial vehicle manufacturing.

The new entity will function as a dedicated original equipment manufacturer (OEM). The collaboration follows a previous memorandum of understanding regarding zero-emission mobility. MFTBC is 89.29 percent owned by Daimler Truck AG, with the remainder held by Mitsubishi group companies.

Karl Deppen, CEO, MFTBC, said, “We are excited to join forces with Foxconn. This collaboration will combine the strengths of both parties to accelerate our transformation in the bus sector. By combining FUSO and Foxconn’s extensive experience and technological know-how, we will offer customers state-of-the art solutions for public transport, thereby contributing to society both in Japan and abroad.”

Jun Seki, Foxconn Chief Strategy Officer for EVs, added, “Mobility is a strategic priority for Foxconn. This collaboration with MFTBC will provide a comprehensive electrification solution for Japan’s transportation ecosystem. This approach will significantly shorten development cycles and enhance cost-efficiency.”

Katsuto Kora, designated CEO of the new company, stated, “The new joint venture will integrate the corporate cultures of both companies, blending Japan’s spirit of manufacturing excellence with Foxconn’s agility and technological prowess. Given the extensive existing partnerships of both shareholders, we expect even broader collaboration opportunities in the field of future technologies in the years to come. Our focus will be on meeting customer expectations not only for current conventional ICE improvement but also for zero-emission transportation and leading FUSO bus into a new era of digitalisation and electrification.”

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Ashok Leyland, one of the leading commercial vehicle manufacturers, has reintroduced the Taurus and Hippo nameplates to its heavy-duty truck portfolio.

In its new avatar, the Taurus will serve as the brand’s high-horsepower tipper range, while the Hippo anchors the tractor segment. Both vehicles are built on the AVTR modular platform, allowing for various configurations to meet specific haulage requirements.

The new range is powered by an 8.0-litre A-Series 6-cylinder engine, producing 360 HP and 1,600 Nm of torque. These vehicles feature reinforced chassis and heavy-duty drivetrains designed for mining, infrastructure and construction applications. The modular architecture is intended to improve component life and fuel efficiency while reducing driver fatigue through updated cabin ergonomics.

The Hippo was a prominent heavy hauler from the 1980s until the early 2000s, while the Taurus was known as the first multi-axle truck in India. The reintroduction of these names targets the medium and heavy commercial vehicle (MHCV) industry, specifically segments involving bulk commodities, industrial raw materials and over-dimensional cargo (ODC) transportation.

Bookings and deliveries for both ranges have commenced through dealerships nationwide. The company aims to use these models to consolidate its position in the high-horsepower segment of the Indian market.

Shenu Agarwal, Managing Director & CEO, Ashok Leyland, said, “Taurus and Hippo are purpose-built for heavy-duty requirements of mining, infrastructure, and construction applications. The new truck range is powered by Ashok Leyland’s A-Series 6-cylinder engines, now with industry-leading peak torque and power, delivering unmatched durability and reliability, higher productivity and faster turnaround times.”

Sanjeev Kumar, President – MHCV, Ashok Leyland, added, “Hippo and Taurus aren't just product names; they are legends that earned the trust of generations of Indian transporters. These names became synonymous with heavy-duty performance across Indian highways and mining sites, and that's the legacy we're building upon. Tippers and tractors are among the fastest-growing segments in the MHCV industry, playing a critical role in India’s infrastructure growth. Operating in harsh terrains and extreme conditions, these vehicles demand superior reliability, robustness, and driver comfort.”

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Fresh Bus has signed a Memorandum of Understanding (MoU) with Exponent Energy to deploy 250 electric intercity buses across India. The agreement introduces a rapid-charging platform designed to support long-distance travel, including the deployment of a sleeper electric vehicle (EV) fleet. The partnership will initially focus on the Hyderabad–Bengaluru corridor before expanding to other regions.

The collaboration addresses the range limitations traditionally associated with electric buses. Standard intercity EVs often require large battery packs or lengthy charging stops to cover distances beyond 350 km. The new system utilises Exponent Energy’s 1.5 MW infrastructure to provide 15-minute rapid charging during transit. This allows vehicles to operate on routes up to 1,000 km by recharging during highway stops, mimicking the operational patterns of diesel vehicles.

By using rapid-charging technology instead of larger batteries, the companies aim to reduce vehicle weight and lower the total cost of ownership. The megawatt-scale charging stations are positioned to enable faster turnaround times and higher fleet utilisation. This infrastructure supports the goal of Fresh Bus to operate 10,000 electric buses and capture 10 percent of the Indian intercity market.

The technology was developed in India and is intended to prove the viability of long-haul electrification for the domestic transportation sector. The partners spent two years on joint engineering to ensure the platform could meet the demands of India’s highway network and climate conditions.

Sudhakar Chirra, Founder & CEO, Fresh Bus, said, "This is a systems-level solution built for real-world intercity operations. Fast charging is inherently more efficient than simply adding oversized batteries. After two years of close collaboration and rigorous joint engineering with Exponent Energy, we’re ready to deploy at scale. We are not merely adopting EVs; we are co-designing a new paradigm for intercity travel that is faster, more reliable, and ultimately, more passenger-centric, directly addressing the myth that electric buses cannot reliably conquer India’s vast intercity network."

Arun Vinayak, Founder & CEO, Exponent Energy, said, “Rapid charging truly unlocks the opportunity to replace diesel buses with EVs on long-haul routes. A 15-minute quick charge every 300 km during highway pitstops allows for diesel vehicle-like operations with all the benefits of EVs to the fleet operator, the passengers and the climate. We are proud to have developed the entire 1.5MW charging capability and rapid charging technology in India and we are pleased to be working with Fresh Bus to co-design the ecosystem. Together, we’re putting India in pole position when it comes to long-haul electrification globally.”

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