Even before the proposed acquisition of Italy’s Iveco Group receives the final regulatory clearances, Tata Motors has begun outlining an ambitious roadmap of crossing one million commercial vehicle sales annually and joining the ranks of the world’s four largest truck and bus manufacturers.
Addressing shareholders at Tata Motors‘ second annual general meeting since its commercial vehicle business was demerged and separately listed, chairman N Chandrasekaran said the acquisition would transform the scale and global reach of the company. “Together we will be in the range of 6 lakh vehicles to start and easily see us crossing 1 million vehicles in the years to come,” Chandrasekaran said.
The acquisition, expected to close by the second quarter of the current fiscal, will create a combined commercial vehicle business with annual sales of around 600,000 units. Chandrasekaran said the transaction will provide Tata Motors access to advanced powertrain and next-generation technologies, strengthen its global manufacturing footprint and significantly broaden its international product portfolio.
“Together, we will optimise, scale and grow to be ranked amongst the top four commercial vehicle entities globally,” he said. The combined entity is targeting a place among the global industry’s top four manufacturers, currently led by Daimler Truck, Traton, Volvo Group and Paccar.
The acquisition plans come on the back of Tata Motors Commercial Vehicles delivering its strongest financial performance since becoming an independent listed entity following the demerger in November 2025.
Reaffirming the company’s commitment to the Iveco transaction, Chandrasekaran said Tata Motors has secured the majority of the regulatory approvals required across multiple jurisdictions and is working towards completing the remaining clearances during the second quarter of FY27.
He outlined three strategic benefits from the acquisition, access to Iveco’s powertrain and technology capabilities, a significantly expanded international footprint and a broader product portfolio that would allow the company to compete across diverse markets and customer segments.
Domestically, Tata Motors retained its leadership in the commercial vehicle market during FY26, selling over 435,000 vehicles, a 13 per cent increase over the previous year.
Revenue rose 9.8 per cent to a record Rs 83,855 crore, while EBITDA margin improved to 12.3 per cent. Return on capital employed stood at 72.3 per cent, which Chandrasekaran said ranked among the highest in the global commercial vehicle industry.
The company is also reducing its dependence on the cyclical truck business by expanding higher-margin, relatively stable businesses. Revenue from non-cyclical businesses such as spares and services grew 18.2 per cent during the year.
He also added that, Tata Motors Smart City Mobility Solutions has deployed over 3,800 electric buses across 10 cities. The fleet has collectively covered more than 500 million kilometres while maintaining over 95 per cent operational uptime. International operations also recorded 53.9 per cent growth, supported by stronger market penetration and large order wins, providing additional momentum ahead of the planned Iveco integration.