en.Wedoany.com Reported - Tata Motors plans to boost its commercial vehicle business by acquiring Italian truck and bus manufacturer Iveco to expand globally, while focusing on recovering its domestic market share. Managing Director and CEO Girish Wagh told reporters in Mumbai that this dual strategy is central to the company's next phase of growth.

Wagh reiterated Tata Motors' target of restoring its domestic commercial vehicle market share to 40% by fiscal year 2028. He noted that acquiring Iveco would open new growth avenues, allowing the company to enter markets, products, and technologies where it currently has limited presence. Tata Motors announced in July last year that it would acquire all equity of Turin-based Iveco for $4.5 billion.

Wagh stated that the Iveco deal is expected to close by the end of the second quarter of fiscal year 2027, subject to regulatory approvals. He described the strategic partnership as "highly complementary," with Tata Motors holding advantages in India, South Asia, parts of Africa, the Middle East, and ASEAN markets, while Iveco's market presence in Europe and Latin America provides a complementary fit.

"Iveco's smallest product is the Daily (commercial van)," Wagh said. "We have all product portfolios below that model. Similarly, in buses, mining dump trucks, and heavy trucks, there are high-end products that may be applicable in India." Beyond product sharing, Tata Motors also expects synergies with Iveco in revenue, operating costs, and capital expenditure. Wagh mentioned that future opportunities could include introducing Tata products into Latin America through Iveco's network, and co-investing in areas such as electrification, autonomous driving technology, connected vehicles, and software-defined platforms.

Wagh clarified that Tata Motors is not currently considering shifting production from Europe to India, but sees potential in redesigning supply chains and sourcing more components from cost-competitive regions, including Eastern Europe.

In the domestic market, Wagh is optimistic about share recovery. After losing some market share last year, Tata Motors has started the current fiscal year with stronger performance, achieving growth in multiple segments. In its most profitable heavy commercial vehicle segment, the company recorded its highest market share in nearly a decade.

Despite cost pressures, Tata Motors remains committed to its financial targets. Wagh said the commercial vehicle business has achieved its set goals of double-digit EBITDA margin and double-digit EBIT margin. Chief Financial Officer GV Ramanan confirmed that the company continues to target double-digit EBITDA margins over the full cycle, and EBITDA margins in the mid-teens during upcycles.

Wagh believes that while commodity inflation and geopolitical turmoil remain near-term risks, India's advancing infrastructure development, industrial growth, and rising freight demand will continue to provide structural support for the commercial vehicle industry. Tata Motors shares closed up 5.1% at 432.15 rupees on the Bombay Stock Exchange (BSE), outperforming the benchmark Sensex's gain of 0.14%.

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