Tata Motors steps up its global CV ambition with Iveco

Tata Motors is aiming to emerge among the world’s top four commercial vehicle (CV) manufacturers as it advances its proposed acquisition of Italy’s Iveco Group, with Chairman N Chandrasekaran saying the combined business is expected to grow annual revenues from about $25 billion currently to $35 billion-40 billion over the next five years, strengthening the company’s global scale and technology wherewithal.

- ANJALI SINGH

“Addressing shareholders at the company’s annual general meeting on Monday, Chandrasekaran described the acquisition as a pivotal step in Tata Motors’ international expansion strategy. “The proposed acquisition of Iveco marks a strategic step forward in advancing your company’s global ambitions,” Chandrasekaran said. “Together, we will optimise, scale, and grow to be ranked among the top four CV entities globally.”

Responding to shareholder queries, Chandrasekaran said the proposed acquisition would be funded through a mix of debt and internal cash, with the debt to be serviced and repaid through Iveco’s future cash flows. No equity dilution is envisaged, he added.