Tata Motors is targeting annual commercial vehicle sales of over 1 million units after integrating Iveco, with the combined business expected to start at around 6 lakh vehicles.
Chairman N Chandrasekaran said the Iveco acquisition will strengthen Tata Motors' global footprint, technology capabilities and position it among the world's top four commercial vehicle makers.
The company also reported strong FY26 performance, driven by growth in international operations and higher-margin businesses such as spares and services.
Tata Motors is targeting annual commercial vehicle sales of more than one million units after it integrates Italy's Iveco Group, chairman N Chandrasekaran said at the company's annual general meeting on June 29.
The proposed acquisition, which is awaiting the final set of regulatory approvals, is expected to close by the second quarter of the current fiscal year. Once completed, the combined business will have an initial annual volume of around 600,000 vehicles, placing Tata Motors among the world's four largest commercial vehicle manufacturers.
1 June 2026
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"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, as quoted by multiple reports.
He said the deal will provide Tata Motors access to advanced powertrain and next-generation technologies, strengthen its global manufacturing and product portfolio, and significantly expand its international footprint. "Together, we will optimise, scale and grow to be ranked amongst the top four commercial vehicle entities globally," he reportedly added.
The AGM was the company's second since its commercial vehicle business was demerged and separately listed in November 2025. Chandrasekaran said the company reported its strongest financial performance since becoming an independent listed entity.
In FY26, Tata Motors retained its leadership in the domestic commercial vehicle market, with sales exceeding 435,000 units, up 13% year-on-year. Revenue rose 9.8% to a record ₹83,855 crore, while EBITDA margin improved to 12.3%. Return on capital employed stood at 72.3%. The board has recommended a final dividend of ₹4 per share.
Chandrasekaran said the company is expanding higher-margin, non-cyclical revenue streams to reduce dependence on the truck business. Spares and services grew 18.2% during the year.
Its electric bus subsidiary, Tata Motors Smart City Mobility Solutions, deployed over 3,800 electric buses across 10 cities, which have cumulatively covered more than 500 million kilometres at over 95% operational uptime.
The company's Fleet Edge connected vehicle platform crossed one million connected vehicles, while its Fleet Verse digital commerce platform recorded growth during the year.
International operations grew 53.9% in FY26, driven by stronger market penetration and large order wins.
