Tata Motors shares recover from day's low; experts positive on Iveco deal

Shares of Tata Motors Ltd declined by 2.45 per cent in Thursday's trade, touching a low of Rs 652.05. However, the stock recovered later and was last trading 0.26 per cent higher at Rs 670.15.

The Indian auto giant is in the final stages of signing a deal to acquire Italian truck maker Iveco in a transaction valued at 3.8 billion euros (around $4.3 billion). The deal, involving the Agnelli family -- major shareholders in Iveco -- aims to create a global powerhouse in the commercial vehicle (CV) segment with an extensive international footprint. The deal exceeds Tata Motors' previous major acquisition in 2008, when it bought Jaguar Land Rover (JLR) for $2.3 billion.

A few market experts view the Iveco acquisition as a long-term positive. One of them also noted that the recent 25 per cent tariff imposed by the US is likely to have a neutral impact on Tata Motors.

Deven Choksey, MD at DRChoksey FinServ Pvt, believes the Iveco acquisition offers Tata Motors an opportunity to expand into the global market, along with access to the advanced technology platform Iveco has developed. "The company's CV business, which is set to be demerged from the passenger vehicle (PV) segment by the end of this year, is currently a Rs 75,000 crore business. If Iveco is merged into this CV business, the combined size could exceed Rs 2 lakh crore -- nearly three times the scale they are currently operating at," he told Business Today.

"In my view, if Indian companies don't step into the global arena, we cannot progress as the world's third-largest economy. These companies are paving the way to enter the global landscape, keeping international markets at the forefront of their business strategy. So, I remain distinctly optimistic about Tata Motors' future prospects. While there may be some near-term adjustments, this could be a significant opportunity, especially with the PV and CV segments undergoing demerger. We remain cautiously optimistic about the road ahead," the market veteran added.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, stated that the current tariff announcement is expected to have a neutral impact on Tata Motors, as any exports through its UK-based JLR subsidiary would be covered under the existing UK-US trade agreement. He added that the Iveco deal would benefit the company in the long run.

Ravi Singh, Senior Vice-President of Retail Research at Religare Broking, said the stock hit Rs 705 level in the near term, adding that investors should maintain a stop loss of Rs 650.

As of June 2025, promoters held a 42.57 per cent stake in the Tata Group company.