Tata Motors to localise Iveco Group products for India: N Chandrasekaran

Tata Motors Commercial Vehicles and Iveco Group are exploring opportunities to bring select Iveco products to India, with localisation through semi-knocked-down (SKD) manufacturing likely to be the starting point.

Speaking at a global press meet in Turin, Italy, N Chandrasekaran, Chairman of Tata Sons, Tata Motors and Iveco Group, said the companies are already identifying Iveco products that would be relevant to the Indian market.

“There is a huge opportunity for Tata Motors Commercial Vehicles and Iveco Group to work together. The product portfolios have a lot of complementarity. There are specific products of Iveco Group which will have a lot of relevance in India. We are already identifying those products,” said Chandrasekaran.

The Tata Sons chairman said these products will have to be localised in India. “At least, to start with, semi-knocked-down manufacturing. That will really create opportunity for these products in the Indian market,” he explained.

Similarly, products and platforms of Tata Motors will be evaluated for other markets under Iveco Group, said Chandrasekaran. “We will see how to take them forward. Obviously, there are opportunities in terms of components, batteries and many other areas,” he added.

The combined business is expected to produce close to 600,000 vehicles annually, with revenues of approximately $24 billion. With Tata Motors' strong presence in India and Iveco's established footprint in Europe and Latin America, the combination aims to unlock growth opportunities across markets and product segments, including trucks, buses, mining and construction vehicles.

“In all the markets we operate, there are growth opportunities. It is a combination that is going to be growth-oriented and we have multiple jewels between the two companies. There are trucks, buses and special vehicles for different needs whether it is mining and construction,” said Chandrasekaran.

The combined entity ranks fourth globally among commercial vehicle manufacturers in the above-six-tonne truck segment, bringing together complementary product portfolios, manufacturing capabilities and geographic strengths across Europe, India, South America, Asia, the Middle East and Africa.

The combined enterprise will have 27 manufacturing facilities, 25 research and development centres and a network of more than 9,300 sales and service centres, supported by a workforce of over 73,000 employees across six continents.

The companies said the combination is expected to provide greater scale to compete across markets.