Calcutta: Tata Motors Commercial Vehicles has laid out an aggressive global growth strategy after its proposed acquisition of Italian commercial vehicle maker Iveco, with chairman N Chandrasekharan saying the combined entity has the potential to grow into a $35-40 billion business over the next five years.

Addressing shareholders at the company’s annual general meeting on Monday, Chandrasekharan said the merged business would begin with annual revenues of around $25 billion once the acquisition is completed, which is expected by the second quarter of FY27, subject to regulatory approvals.

“We are well on our way to securing the approvals and expect to complete the transaction by Q2 of this fiscal year,” he said.

The combination, he added, would propel Tata Motors Commercial Vehicles into the league of the world’s top four commercial vehicle manufacturers by scale.

“Together between Tata Motors Commercial Vehicles and Iveco, we will optimise scale and grow to be ranked amongst the top four commercial vehicle entities globally. Together, we will be in the range of six lakh vehicles to start with, and I see us crossing one million vehicles in the years to come,” Chandrasekharan said.

He said the acquisition would significantly strengthen Tata Motors’ technology capabilities, particularly in advanced powertrains and next-generation vehicle platforms.

“Iveco will enable us to access advanced powertrain and next-generation technologies, strengthening our long-term innovation pipeline,” he said, adding that the acquisition would improve the company’s competitiveness across multiple global markets.

Tata Motors announced in July 2025 that it would acquire Iveco Group’s commercial vehicle business, excluding its defence operations, for €3.8 billion.

Describing Iveco as a fundamentally strong business, Chandrasekharan said it had generated profits and positive cash flows over the last two financial years despite reporting a small loss in the first quarter this year.

Managing director and chief executive Grish Wagh said the global commercial vehicle industry is undergoing a structural transformation driven by connected vehicles, autonomous driving and advanced driver assistance systems (ADAS), decarbonisation and software-defined vehicle architecture.

“We continue to invest proactively in these megatrends to drive competitiveness and sustainable mobility leadership,” Wagh said.