Tata Motors slides over 4% as talks emerge on potential $4.5 billion Iveco deal

Tata Motors' stock price is down 10 percent since the beginning of the year.

Shares of Tata Motors came under pressure on July 30, falling more than 4 percent after reports emerged that the Indian auto major is in advanced talks to acquire the truck division of Italy’s Iveco Group in a deal valued at $4.5 billion.

According to CNBC TV-18, discussions between Tata Motors and the Agnelli family-owned Iveco are centred around the commercial and defence truck business. Iveco has publicly acknowledged that it is exploring a potential sale of its industrial vehicle unit, although a final decision is yet to be announced.

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If sealed, the transaction would mark the Tata Group’s second-largest buyout after the landmark Corus acquisition in 2007. It would also become Tata Motors’ biggest purchase since the $2.3 billion takeover of Jaguar Land Rover in 2008.

The CNBC TV-18 report indicated that the boards of both companies could greenlight the deal as early as today.

As per reports, trucks accounted for 70 percent of Iveco’s industrial revenue, while buses and powertrain divisions contributed 15 percent each. The Italian group held a 13.3 percent share in the light commercial vehicle (LCV) market in 2024 and had an 8 to 9 percent presence in the medium and heavy commercial vehicle space.

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The development gains significance as Tata Motors is in the process of spinning off its commercial vehicle segment into a separate entity by December 2025. That business, which generated revenue of Rs 75,000 crore in the previous financial year, holds a dominant 49 percent market share in India’s heavy commercial vehicle space and 30 percent in the LCV category. It also delivered an EBITDA of Rs 8,800 crore and free cash flow of Rs 7,400 crore, and is expected to be net cash positive at the time of the demerger.

At about 9:45 pm, shares of the company were trading at Rs 670, lower by 3.3 percent from the last close on the NSE. Tata Motors' stock price is down 10 percent since the beginning of the year.