Newly-appointed Iveco Group Chairman N Chandrasekaran on Tuesday outlined a five-year growth ambition for the $24-billion Tata-Iveco commercial vehicle venture, targeting combined annual sales of nearly six lakh vehicles, as Tata Motors began identifying Iveco products for assembly in India while exploring opportunities to expand overseas.
“The combined revenue is of the order of $24 billion. And both companies are profitable,” Chandrasekaran said at a global media interaction in Turin, adding that both businesses generate cash.
He expects higher vehicle volumes, significant revenue growth and improved margins over the next five years. “We will invest for the long term and enable ideas and capabilities to flow in both directions,” Chandrasekaran said.
The enterprise ranks fourth globally in trucks above six tonnes, but its growth opportunities extend to light commercial vehicles, buses, specialised vehicles and industrial engines.
Iveco’s FPT Industrial, the group’s engine and powertrain business, supplies engines for trucks, agricultural machinery, construction equipment, marine vessels and power generators. It could open up new industrial markets for Tata Motors beyond commercial vehicles. Tata Daewoo has used FPT engines for two decades, while Tata Motors intends to retain its partnership with Cummins for Indian heavy trucks.
Girish Wagh, Managing Director and CEO of Tata Motors, said Iveco products were being identified for India, initially through semi-knocked-down (SKD) assembly, followed by progressive localisation.
“There are specific products of Iveco Group which will have a lot of relevance in India, and we are already identifying those products,” Wagh said.
No models, investment commitments or manufacturing timelines were disclosed. Iveco CEO Olof Persson reaffirmed the company’s existing investment plans in Italy and its industrial identity.
“We now have the opportunity to build on everything Iveco Group has achieved, unlock new possibilities with Tata Motors and create an even stronger future,” Persson said.
Aveek Chattopadhyay, an automotive industry analyst, said Iveco’s distribution and retail financing networks in Brazil and Argentina could accelerate Tata Motors’ expansion in Latin America, while the combined enterprise could benefit from complementary capabilities in batteries, engineering, components and sourcing.
Nomura projects Iveco’s EBIT margin to rise from 2.8 per cent in FY27 to 5.4 per cent in FY29, offering investors a benchmark against which to assess the combined entity’s profitability ambitions.
On Iveco’s delisting, Chandrasekaran said, “We are actively working towards delisting. I don’t want to give any timeline, but it will happen soon.”
Published on November 3, 2026
