Tata Motors Share Price Drops Over 4% Amid Reports of $4.5 Billion Iveco Deal

Market Performance

Tata Motors share price came under pressure on July 30, falling more than 4% during early trade.

• Around 9:45 PM, the Tata Motors share price was trading at Rs 670, down 3.3% from the previous close on the NSE.
• The stock has declined by 10% since the start of 2025, signaling a notable dip in investor sentiment.

Main News

The decline in Tata Motors share price followed reports of a potential high-value international acquisition. According to CNBC-TV18, Tata Motors is reportedly in advanced talks to acquire the truck division of Italy’s Iveco Group in a deal estimated at $4.5 billion.

Key highlights of the report include:

• Discussions are centered around Iveco’s commercial and defence truck business.
• Iveco, owned by the Agnelli family, confirmed that it is exploring a sale of its industrial vehicle unit.
• The boards of both companies were expected to consider the deal as early as July 30.

If concluded, this would become:

• Tata Group’s second-largest buyout after acquiring Corus in 2007.
• The biggest acquisition by Tata Motors since its $2.3 billion takeover of Jaguar Land Rover in 2008.

Company Details

The talks with Iveco arrive at a pivotal moment for Tata Motors, which is currently undergoing a strategic transformation. The company has announced plans to demerge its commercial vehicle business into a separate entity by December 2025.

Key figures from Tata Motors’ commercial vehicle segment:

• Annual Revenue: ₹75,000 crore
• EBITDA: ₹8,800 crore
• Free Cash Flow: ₹7,400 crore
• Market Share in India:
  • Heavy Commercial Vehicles (HCV): 49%
  • Light Commercial Vehicles (LCV): 30%

The new entity is also expected to be net cash positive at the time of demerger.

Iveco’s Market Presence

As per reports, Iveco’s industrial business is largely driven by its truck division:

• Trucks contribute: 70% of its industrial revenue
• Buses and powertrain: 15% each
• Market Share:
  • 13.3% in the LCV segment (2024)
  • 8–9% in the medium and heavy commercial vehicle categories

The acquisition of Iveco’s truck unit could significantly expand Tata Motors’ footprint in the European and global commercial vehicle markets, though the final outcome of the talks remains unconfirmed.

Summary of the Article

The Tata Motors share price fell over 4% following media reports about its potential $4.5 billion acquisition of Iveco’s truck business. If finalized, the deal could be one of the largest in Tata Group’s history. Meanwhile, Tata Motors is preparing to spin off its commercial vehicle business, which reported strong financials and holds a substantial market share in India. The deal, if it materializes, would further strengthen Tata’s presence in the global commercial vehicle segment.