Tata Motors Shares Fall 4% Amid Reports Of $4.5 Billion Iveco Acquisition

Last Updated:July 30, 2025, 09:39 IST

Shares of Tata Motors Ltd., the manufacturer of passenger and commercial vehicles, fell over 4% on Wednesday; Details

Tata Motors Share Price: Shares of Tata Motors Ltd., the manufacturer of passenger and commercial vehicles, fell over 4% on Wednesday, July 30, after reports that the company may acquire Italy-based Iveco Group’s truck business for $4.5 billion from the Agnelli family.

Iveco group confirmed that it is indeed in talks to sell its defence and commercial truck manufacturing business. The talks are likely to be ongoing with Tata Motors to sell the commercial trucking business, sources told CNBC.

In case the acquisition does materialise, it will be Tata Group’s second-largest acquisition ever, after the Corus deal decades earlier.

This will also be Tata Motors’ largest acquisition, after the $2.3 billion Jaguar Land Rover deal in 2008. The boards of both Tata Motors and Iveco are likely to approve the deal today, say reports.

Brokerage firm JPMorgan wrote in a note that 70% of Iveco’s industrial business revenue comes from trucks and 15% each from buses and powertrain. The Group had a 13.3% market share in 2024 in the Light Commercial Vehicles segment, along with an 8% to 9% share in the Medium and Heavy Commercial Vehicles segment. The deal could provide enhanced scale and give access to powertrain technologies to Tata Motors.

The company is also undergoing a demerger, where the Commercial Vehicle business will function as a separate entity. T

ata Motors’ Commercial Vehicle business is largely India-focused with a 49% market share in heavy and 30% share in the Light Commercial Vehicles segment.

The segment posted revenue of Rs 75,000 crore, Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of Rs 8,800 crore and free cash flow of Rs 7,400 crore during the previous financial year. This business should be net cash at the time of the demerger, which is likely to be completed by December 2025.

Shares of Tata Motors are trading 3.7% lower at Rs 667.8.

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Aparna Deb

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More

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