TaMo aims to drive down Iveco costs, open new roads

Analysts questioned the rationale of buying the Italian firm that was facing growth hurdles

- Ayaan Kartik

Tata Motors said the Iveco buyout could unlock a bigger value than JLR.

(AFP)

Tata Motors' biggest global bet since Jaguar Land Rover (JLR) will be steered by cost savings. Cutting spending on product development, components and research is central to its $4.4 billion acquisition of Italian commercial vehicle maker Iveco, alongside plans to expand into new markets and product segments, the company said, maintaining that the move could unlock a bigger value than even JLR.

At a meeting with analysts of top brokerage houses on Monday, the company's management laid out its plan to leverage its biggest buyout after JLR in 2008. This comes at a time when analysts questioned the rationale of the buyout just ahead of the demerger of its commercial vehicle entity.