Tata Sons Chairman N Chandrasekaran met Italian Prime Minister Giorgia Meloni at Palazzo Chigi in Rome on Wednesday, with Tata Motors' acquisition of a controlling stake in Italian commercial vehicle manufacturer Iveco Group emerging as a key subject of discussion.
The meeting took place against the backdrop of expanding strategic, industrial and economic cooperation between India and Italy. Sources said Chandrasekaran outlined the Tata Group's strategy following its takeover of Iveco, one of Italy's leading commercial vehicle manufacturers.
On October 30, Tata Motors announced that it had acquired an 89.42% stake in Iveco for approximately €3.43 billion after the initial settlement of its cash tender offer. The acquisition has made Iveco an indirect subsidiary of Tata Motors.
The two companies are now moving towards the next stage of integration and joint strategic planning, with the aim of building a global commercial vehicle business.
Tata chairman thanks Italian government for support
Speaking at a global press conference at Iveco's headquarters in Turin on Tuesday, Chandrasekaran thanked the Italian government and Meloni for their encouragement and support throughout the acquisition process. He also acknowledged the role of Italian Industry Minister Adolfo Urso.
"Iveco Group, with very strong Italian roots and a strong presence across Europe and Latin America, brings huge industrial heritage, iconic brands, technology and world-class capabilities across trucks, buses and power trains.
"I would like to thank everyone who has been involved in this transaction, and I'm grateful to all of them. I would also like to start today by thanking the Italian government and the Prime Minister Giorgia Meloni and Minister Adolfo Urso for their encouragement and support throughout this process," the Tata Sons chairman said.
Chandrasekaran recalls Tata Motors' Turin connection
Chandrasekaran also highlighted Tata Motors' longstanding association with Turin, recalling how the Italian city played a role in the development of the company's first indigenous passenger car.
He said former Tata Group chairman Ratan Tata had turned to the Turin-based design house Idea when Tata Motors decided to develop and manufacture its own passenger vehicle in India in the late 1990s.
"I would like to give you a story which explains our connect with Turin. When our ex-Chairman Mr Ratan Tata decided that Tata Motors will develop and manufacture its indigenous passenger car, he actually turned to Turin, and there was a famous design house in Turin by the name Idea.
"And Idea was where the first indigenous Indian car took shape. It is from the late nineties that many of us from Tata Motors have been coming to Turin. Therefore, we have a very strong connect with Turin. We owe it to Turin for our passenger car business because it was kind of born here," he said.
Tata Motors and Iveco target global growth
Chandrasekaran has said the partnership between Tata Motors and Iveco is expected to drive significant growth in volumes, revenues and margins over the next five years as the companies work towards creating a global commercial vehicle powerhouse.
In a joint statement, the companies said their complementary product portfolios and geographical strengths would create a global enterprise with operations across more than 130 countries.
The combined business will have a presence in key developed and high-growth markets across Europe, India, South America, Asia, the Middle East and Africa, with combined revenues of €21 billion, equivalent to approximately ₹2.28 lakh crore.
With the acquisition completed, the two companies are preparing for the next phase of integration and strategic planning to strengthen their global commercial vehicle operations.